Test 2

Question 1

What do people consistently do to their own wise financial plan?

Answer 1

think of ways to spend the money before they even get it

Question 2

instead of taking care of their needs, people often spend their money on what?

Answer 2

wants

Question 3

Why is a budget important?

Answer 3

it allows you to control money

Question 4

what is a written plan for giving, saving, and spending?

Answer 4

budget

Question 4

Who is a budget for?

Answer 4

everyone

Question 5

How does a good budget break down income?

Answer 5

specific categories

Question 6

what percentage of Americans say budgeting is important vs. what percentage actually do it?

Answer 6

95%, 35%

Question 7

Why do most people avoid budgets?

Answer 7

they think it will keep them from having fun

Question 8

True/False: You have to be an expert in order to budget

Answer 8

False

Question 9

A budget simply requires what?

Answer 9

effort

Question 10

what is your biggest wealth building tool?

Answer 10

income

Question 11

what percentage of students who take personal finance classes create a monthly budget?

Answer 11

80%

Question 12

what is any money you earn/receive?

Answer 12

income

Question 13

What must be the first priority in your budget?

Answer 13

giving

Question 14

what must be the second priority in your budget?

Answer 14

saving

Question 15

In order to keep your budget on track, what must you do?

Answer 15

break it down into small categories

Question 16

What kind of expense stays the same every month?

Answer 16

fixed expense

Question 17

What kind of expense varies in dollar amount but you can expect it each month?

Answer 17

variable expense

Question 18

What kind of expense occurs at various times and tends to be large sums

Answer 18

intermittent

Question 19

What kind of expense is an expense for something you don’t need

Answer 19

discretionary

Question 20

what happens when you approach your money in a spirit of generosity?

Answer 20

you become more grateful/content for what you have

Question 21

What verse is used to show us that the Bible commands us to be generous?

Answer 21

Luke 6:38

Question 22

What does contentment naturally lead to?

Answer 22

the want to serve/help others

Question 22

How much of your income should you save for giving?

Answer 22

10%

Question 23

what is the cash flow plan that assigns an expense to every dollar income

Answer 23

zero-based budget

Question 24

What does a zero-based budget do to each dollar received?

Answer 24

gives it a job

Question 25

What does a zero-based budget allow you to start accomplishing today?

Answer 25

the five foundations

Question 26

what are the four walls of expenses?

Answer 26

food, utilities, shelter, transportation

Question 27

How much of your gross income should you invest?

Answer 27

15%

Question 28

what is the amount you earn before taxes and other payroll deductions?

Answer 28

gross income

Question 29

What is the second half of a successful budgeting?

Answer 29

sticking to the plan, knowing where to adjust the budget

Question 30

what is the hardest part of tracking expenses?

Answer 30

getting into the habit

Question 31

what percentage of millionaires stick to their budgets?

Answer 31

93%

Question 32

What should you do if you go over one category in your budget?

Answer 32

cutback in another category

Question 33

what does the envelope system provide?

Answer 33

instant accountability

Question 34

in the envelope system, what are the envelopes used for?

Answer 34

categories that you tend to overspend on

Question 35

what is a record that summarizes all the income and outgo over a certain time period

Answer 35

cash flow statement

Question 36

every dollar you spend is a reflection of your what?

Answer 36

values

Question 37

when do your good intentions matter?

Answer 37

when they turn into good actions

Question 38

what percentage of students who have taken this course feel they are better able to talk about finances with their families?

Answer 38

65%

Question 39

what is the ability to delay gratification

Answer 39

maturity

Question 40

what is earning based off of a percentage of sales made?

Answer 40

commission

Question 40

what type of income comes in at different amounts of time

Answer 40

irregular income

Question 40

the average family spends how much honey on clothes each year?

Answer 40

$1800

Question 40

what heavily influences your desire for a budget?

Answer 40

financial personality

Question 41

what must you schedule each month for your budget?

Answer 41

time

Question 42

what does budgeting in a marriage require?

Answer 42

work

Question 43

what do successful marriages have concerning budget planning?

Answer 43

budget committee meeting

Question 44

who does your money really belong to?

Answer 44

God

Question 45

What are the 4 steps to the envelope system?

Answer 45

withdraw cash, put amount of money into designated envelope, once money is needed- withdrawal money from envelope, one cash is gone- no more spending