Question

1. a person who keeps overspending on streaming services and snacks should

a. reduce spending habits
b. cancel all fixed expenses
c. ignore the problem
d. increase variable expenses

1. a balanced budget means:

a. savings are not included
b. expenses exceed income
c. spending is not tracked
d. income equals or exceeds expenses

1. what does \pay yourself first\ mean?

a. wait to save whats left
b. spend on yourself before others
c. save before paying other expenses
d. pay your bills first

1. savings help achieve financial goals by:

a. providing money to meet goals and emergencies
b. reducing income
c. increasing credit card debt
d. eliminating budgets

1. the habit of saving begins with:

a. making saving a regular, automatic action
b. waiting until extra money appears
c. spending first
d. avoiding banks

1. using the rule of 72 to estimate how long it will take $100 to lose half its pur

power with a 3.5% inflation rate looks like:
a. (100 / 72)/3.5 =
b. 3.5% x 72 =
c. 72/3.5 x 100 =
d. 72/3.5 =

1. the rule of 72 helps you estimate:

a. when to retire
b. how much tax you owe
c. how to create a budget
d. how long it takes savings to double at an interest rate

Explanation:

• Question 30: A balanced budget means income equals or exceeds expenses. This is the basic definition of a balanced budget in financial terms.
• Question 31: "Pay yourself first" means save before paying other expenses. It emphasizes prioritizing savings.
• Question 32: Savings help achieve financial goals by providing money to meet goals and emergencies. Savings act as a financial cushion.
• Question 33: The habit of saving begins with making saving a regular, automatic action. Consistency is key to forming a saving habit.
• Question 34: Using the Rule of 72 to estimate how long it will take for money to lose half its purchasing power (in the context of inflation) is calculated as \(72\div\) (inflation rate). So for a \(3.5\%\) inflation rate, it is \(72\div3.5\).
• Question 35: The Rule of 72 helps you estimate how long it takes savings to double at an interest rate. It is a quick formula for this purpose.

Answer:

• 30. D. Income equals or exceeds expenses
• 31. C. Save before paying other expenses
• 32. A. Providing money to meet goals and emergencies
• 33. A. Making saving a regular, automatic action
• 34. D. \(72\div3.5=\)
• 35. D. How long it takes savings to double at an interest rate