Reading BB Budgeting

This reading assignment is based on the Budgeting resources,including the 50-30-20Budget interview with Liz Weston and the Budgeting Slideshow

Links: https://www.marketplace.org/2011/02/11/new-10-commandments-money/ https://www.dropbox.com/s/z7jwsu04qx1ktbd/4A.ppt?dl=0#

QUESTION 1

1. The 50-30-20budget helps us know how much of our income we should be spending on various categories in order to have a sustainable budget with wiggle room for emergencies and enough allocated for fun that we won't often be tempted to break our budget.Match the percentages with the categories they belong to.

30% A. Savings

50% B. Wants

20% C. Needs

2. QUESTION 2

1. Identify what category each expense falls into (with occasional exceptions, depending on a person's job):

• Needs, Wants, Savings are the options for each !

Housing

Donations to charity

Minimum payments on loans

Overpaymentson loans

Transportation

Dining out

Groceries

Retirement plan

Gifts

Cell phone with basic service

Emergency savings

Savings for a vacation

Gym membership

Health insurance

Pet supplies

Car repair fund

QUESTION 3

• Options included for each box include, Need, Want, Savings, Lose your income, Win the lottery, Get an inheritance, are, are not

1. Donations to charity are considered a__________Because if you______________You______________Obligated to continue making those donations.

QUESTION 4

• Options included for each box include, Need, Want, Savings, Pay in Extra, Save On, Have No Change In

1. Overpaymentson loans are considered a___________Because in the long run you_____________Interest costs by paying them early.

QUESTION 5

• Options included for each box include, Need, Want, Savings, Have a monetary windfall, Rehome a pet, lose your income, are, are not, leave the pet, Rehome the pet, Care for the pet

1. Pet supplies are considered a_______________because even if you_____________you____________obligated to____________

QUESTION 6

1. Match the frequency of the expense (or income) with the calculation to prorate it monthly:

Monthly expense A. divide by 12

Yearly expense B. multiply by 52/12

Every 6months cost C. divide by 6

Weekly expense D. do nothing

QUESTION 7

1. Put the steps of calculating monthly cash flow in the correct order:

1 through 5 in the correct order

Add up all the prorated monthly expenses to calculate the total monthly expenses.

List all income and expenses.

Subtract:total monthly income minus total monthly expenses.

Pro-rate all income and expenses to find their monthly amounts.

Add up all the prorated incomesto find the total monthly income.

QUESTION 8

1. If your budget is balanced then your cash flow will be

• These are the two possible correct answer options

1. positive or zero
2. negative