1. The budgeting process starts with monitoring current spending.
2. Most short-term goals are based on activities over the next two or three years.
3. A common long-term goal may involve saving for college for parents of a new-born child.
4. Rent is considered a fixed expense.
5. Flexible expenses stay about the same each month.
6. The final phase of the budgeting process is to:
set personal and financial goals.
compare your budget to what you have actually spent.
review financial progress.
monitor current spending patterns.
7. An example of a long-term goal would be:
an annual vacation.
saving for retirement
buying a used car.
completing college within the next six months.
8. A clearly written financial goal would be:
To save money for college for the next five years
To invest in an international mutual fund for retirement
To establish an emergency fund of $4,000 in 18 months
To pay off credit card bills this year
9. An example of a fixed expense is:
an electric bill.
10. What is commonly considered a flexible expense?
a mortgage payment
BUDGETING QUIZ ANSWERS
- review financial progress
- saving for retirement
- To establish an emergency fund of $4,000 in 18 months
- auto insurance