Post-Test for Chapter 2 on Budgeting Principles by Dave Ramsey

Commission is when you make money based on the percentage of___

Total sales

What are the Four Walls?

Food, utilities, shelter, and tansportation

If you get married, only one person is responsible for budgeting

False

If you have an irregular income, budgeting won't work for you

False

What kind of money counts as income?

All money that you receive, including money from your job and gifts like birthday money

A common misconception is that budgeting will keep you from having fun, when in reality a budget...

Gives you permission to spend

Why is budgeting so important?

It gives you control of your money and sets you up for financial success in the future

What is a good way to make sure you're creating a budget that's realistic?

Check your calendar so you can plan for upcoming monthly expenses

Why is tracking your expenses throughout the month important?

It gives you insight into whether you're sticking to the budget you set

Although the majority of Americans think budgeting is important, about____of Americans actually use a budget

35%

What is a way to stay accountable to reaching your financial goals?

Finding a person you trust to help keep you on track with your money goals

What does a budget show you?

How much money you plan to come in and go out during the month

How many categories should you have in your budget?

No limit; use as many as you need to keep your budget accurate

Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount of___they have

Personal debt

What should you do if you overspend in one category of your budget?

Adjust your budget by removing money from other spending categories

Which of the following is NOT a component of a budget? Giving, income, saving, or credit score?

Credit score

The best way to budget is...

The way that works best for you

Your money personality can affect your___

Attitude toward budgeting

Your monthly rent payment is an example of a variable expense

False

The first priority in your budget should be____

Giving

When is the right time to start creating and living by a budget?

Right now-it's never too early

Net income is the amount you get paid before taxes

False

The primary reason people don't budget is because they lack the behavior to stick to a budget

True

Detailed categories on your budget will help you make better spending decisions

True

How many months does it usually take for your budget to start working as a budget should?

Three

How often should you create a budget?

Monthly

Online budgeting apps are more effective than budgeting with pen and paper

False

What is the envelope system?

It's a method of budgeting that uses envelopes labeled with specific budget categories for your cash

Going to the movies is an example of what types of expenses?

Discretionary and variable

A budget says what will happen with your money, while a cash-flow statement shows what already happened

True