Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
Tips and Tools For Financial Success - Newton Free Library
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Budgeting Quiz –Answers<br />
1. Correct Answer: b. FDIC Money Smart indicates tax records should be kept for 3 years. Contact<br />
the IRS for annual changes.<br />
2. Correct Answer: a. Typically rent is the same amount each month <strong>and</strong> does not vary.<br />
3. Correct Answer: b. The Social Security Program does not provide money for taxes.<br />
4. Correct Answer: d. Each of these tools are used for budgeting <strong>and</strong> explained in module.<br />
5. Correct Answer: d. A spending plan is an estimate of the amount of money you anticipate using or<br />
budget. Flexible expenses are outflows net income is an inflow <strong>and</strong> a daily spending diary is a tool<br />
used for budgeting.<br />
6. Correct Answer: c. A student loan is a debt that must be paid back <strong>and</strong> can only be used for<br />
education.<br />
7. Correct Answer: d. Gross income is the amount of money earned before money is taken out.<br />
8. Correct Answer: c. Loans with high interest rates compound <strong>and</strong> rapidly increase debts so it is wise<br />
to take care of them first.<br />
9. Correct Answer: d. Credit card interest is debt <strong>and</strong> not an item that can lower your taxes.<br />
10. Correct Answer: d. Choices a, b, <strong>and</strong> c are all effective steps that can be used for budget<br />
preparation.<br />
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