Title: QUIZ: Budgeting 101: Cash for the Concert
Course: Andria FRE > Section: Budgeting 101: Cash for the Concert -- Interactive Module

Q: When determining a budget, why should you use your net pay instead of your gross pay?
- Net pay is always higher than gross pay. (That is incorrect. When making a budget, you use your net pay because it’s the actual amount of money you take home after taxes and deductions.)
- Net pay is the amount of money you have to spend after taxes and deductions. (That is correct!)
- Gross pay already accounts for taxes, so it’s less accurate. (That is incorrect. When making a budget, you use your net pay because it’s the actual amount of money you take home after taxes and deductions.)
- Gross pay changes every month automatically. (That is incorrect. When making a budget, you use your net pay because it’s the actual amount of money you take home after taxes and deductions.)
A: Net pay is the amount of money you have to spend after taxes and deductions.

Q: Carolyn receives a paycheck every two weeks for her part-time job as a server at an event space. For the first two weeks, her gross pay was $675, and her net pay was $625. For the second two weeks, her gross pay was $650, and her net pay was $600. As she plans a budget, which amount should she use as her income for the month?
- $600 (That is incorrect. Carolyn’s net income for the month is the total of her two net paychecks: $625 + $600 = $1,225.)
- $625 (That is incorrect. Carolyn’s net income for the month is the total of her two net paychecks: $625 + $600 = $1,225.)
- $1,225 (That is correct!)
- $1,335 (That is incorrect. Carolyn’s net income for the month is the total of her two net paychecks: $625 + $600 = $1,225.)
A: $1,225

Q: Which type of expenses may change from one period to the next?
- Fixed (That is incorrect. Variable expenses may change from one period to the next, while fixed expenses are usually consistent from one period to the next.)
- Variable (That is correct!)
- Essential (That is incorrect. Variable expenses may change from one period to the next, while fixed expenses are usually consistent from one period to the next.)
- Non-essential (That is incorrect. Variable expenses may change from one period to the next, while fixed expenses are usually consistent from one period to the next.)
A: Variable

Q: Which of the following is a fixed expense?
- Gas for your car (That is incorrect. Because fixed expenses are usually consistent from one period to the next, the monthly cost of a streaming service would be considered a fixed expense.)
- Groceries (That is incorrect. Because fixed expenses are usually consistent from one period to the next, the monthly cost of a streaming service would be considered a fixed expense.)
- Monthly streaming service (That is correct!)
- Eating at a restaurant (That is incorrect. Because fixed expenses are usually consistent from one period to the next, the monthly cost of a streaming service would be considered a fixed expense.)
A: Monthly streaming service

Q: Which of the following is an essential expense?
- Personal care (nail polish, cologne, etc.) (Trendy personal care items, entertainment, and dining out are all non-essential expenses. Transportation, however, is an essential expense.)
- Entertainment (books, streaming service, etc.) (Trendy personal care items, entertainment, and dining out are all non-essential expenses. Transportation, however, is an essential expense.)
- Transportation (bus fees, gas, etc.) (That is correct!)
- Dining out (restaurants, coffee, etc.) (Trendy personal care items, entertainment, and dining out are all non-essential expenses. Transportation, however, is an essential expense.)
A: Transportation (bus fees, gas, etc.)

Q: In a typical month, Shannon spends about $700. If Shannon determined that her monthly essential expenses equated to $500, how much would she need to save for a 3-month emergency fund?
- $1,200 (That is incorrect. Shannon needs to save $1,500 for a three-month emergency fund: $500 (her essential expenses) x 3 (months) = $1,500.)
- $1,500 (That is correct!)
- $2,000 (That is incorrect. Shannon needs to save $1,500 for a three-month emergency fund: $500 (her essential expenses) x 3 (months) = $1,500.)
- $2,100 (That is incorrect. Shannon needs to save $1,500 for a three-month emergency fund: $500 (her essential expenses) x 3 (months) = $1,500.)
A: $1,500

Q: Julie decided to spend a few extra days in Kansas City with her family after the Mary Malone concert. She set a new savings goal based on these costs: transportation ($75), food ($100), and entertainment ($50). Including the $525 she was already saving for the concert, what is Julie’s new savings goal?
- $225 (That is incorrect. All of Julie’s expenses while in Kansas City add up to $750.)
- $525 (That is incorrect. All of Julie’s expenses while in Kansas City add up to $750.)
- $750 (That is correct!)
- $900 (That is incorrect. All of Julie’s expenses while in Kansas City add up to $750.)
A: $750

Q: If Jenni determined she needed $1,800 to fully fund her 3-month emergency fund and she could budget $100 toward the fund each month, how long would it take her to meet her savings goal?
- 9 months (That is incorrect. It would take Jenni 18 months to fully fund her savings goal: $1,800 ÷ $100 = 18 (months).)
- 10 months (That is incorrect. It would take Jenni 18 months to fully fund her savings goal: $1,800 ÷ $100 = 18 (months).)
- 12 months (That is incorrect. It would take Jenni 18 months to fully fund her savings goal: $1,800 ÷ $100 = 18 (months).)
- 18 months
A: 18 months
If right: That's correct!

Q: Andrea goes to Big Box Electronics to buy a new laptop. She has a budget and has $1,200 saved toward this savings goal. At the store, she sees two options. The first option costs $1,150, and while it meets her needs, the screen is smaller than she prefers. The second option is $1,400 and has a large screen as well as many other extras. If Andrea chooses the more-expensive laptop, how will this affect her budget?
- It won’t affect her budget. (That is incorrect. Since Andrea has saved $1,200 but the cost of the pricier laptop is $1,400, she would need to reduce her variable spending by $200 for the month to avoid overspending.)
- To avoid overspending, she’d need to reduce her variable spending by $200 for the month to afford the laptop. (That's correct!)
- To avoid overspending, she’d need to reduce her variable spending by $250 for the month to afford the laptop. (That is incorrect. Since Andrea has saved $1,200 but the cost of the pricier laptop is $1,400, she would need to reduce her variable spending by $200 for the month to avoid overspending.)
- To avoid overspending, she’d need to reduce her fixed spending by $250 for the month to afford the laptop. (That is incorrect. Since Andrea has saved $1,200 but the cost of the pricier laptop is $1,400, she would need to reduce her variable spending by $200 for the month to avoid overspending.)
A: To avoid overspending, she’d need to reduce her variable spending by $200 for the month to afford the laptop.

Q: Julie has started to budget and wants to categorize the following three expenses to help her track her spending. Which budget category would be the best fit for Julie’s expenses?

Expense 1: $25 on books at The Book Bin

Expense 2: $60 for two hours of game play at Arcade Zone

Expense 3: $20 for tickets to Campus Comedy Night
- Personal Care (All three of these expenses would fall into the “Entertainment” category.)
- School Expenses (All three of these expenses would fall into the “Entertainment” category.)
- Dining Out (All three of these expenses would fall into the “Entertainment” category.)
- Entertainment (That's correct!)
A: Entertainment

Q: This month, Carolyn budgeted $25 for dining out. When she analyzed her expenses at the end of the month, she’d spent $5.50 at a coffee shop, $14.50 on lunch, and $2.00 at a vending machine. How did Carolyn’s spending compare with her budget for this category?
- Carolyn spent $2.50 less than she budgeted for this category. (That is incorrect. Carolyn’s three expenses add to $22.00. Since she budgeted $25.00 for dining out, she spent $3.00 less than she budgeted for this category.)
- Carolyn spent $3.00 less than she budgeted for this category. (That's correct!)
- Carolyn spent $3.00 more than she budgeted for this category. (That is incorrect. Carolyn’s three expenses add to $22.00. Since she budgeted $25.00 for dining out, she spent $3.00 less than she budgeted for this category.)
- There isn’t enough information to determine an answer. (That is incorrect. Carolyn’s three expenses add to $22.00. Since she budgeted $25.00 for dining out, she spent $3.00 less than she budgeted for this category.)
A: Carolyn spent $3.00 less than she budgeted for this category.

Q: Jenni started a savings goal for a new car. She budgeted $100 for her goal this month. When she analyzed her expenses at the end of the month, however, she realized she’d overspent by $50. She needs to modify her budget to cover her overspending. What is her best option, given the information provided?
- She could reallocate $50 from her savings goal to cover her overspending. (That's correct!)
- She could wait for another paycheck and cover it with these funds. (That is incorrect. The best option for Jenni is to contribute $50 less to her savings goal this month to cover her overspending.)
- She could spend $50 less next month. (That is incorrect. The best option for Jenni is to contribute $50 less to her savings goal this month to cover her overspending.)
- She could stop all saving toward a new car. (That is incorrect. The best option for Jenni is to contribute $50 less to her savings goal this month to cover her overspending.)
A: She could reallocate $50 from her savings goal to cover her overspending.