Take the Household Budgeting Quiz & Start Saving

By John Voket

 

I know you don't have to be a CPA or a rocket scientist to figure out how to keep a household budget. In fact, this little quiz to help consumers learn about household budgets is available through the University of Arkansas Division of Agriculture.

To take the quiz, first consider the following words: Business, Income, Debt, Values, Expenses, Written, Goals

Now plug them into the following questions - and you can only use each word once:

1. Running a household is like running a small _____________. In order to stay out of the red, it is necessary to keep accurate records of income and expenses.

2. A spending plan is a tool for achieving long-range _____________. Immediate goals can be covered from paycheck to paycheck; however, in order to achieve future goals, you must have a plan to save a certain percentage of their monthly income.

3. A spending plan helps couples to live within their _____________. It's not about how much money you have, but the fact that better money managers use simple planning and recordkeeping, and follow spending plans.

4. One of the best ways to stay on track with a spending plan is to stay out of _____________.

5. There are two major parts of a spending plan – Income and _____________.

6. Before developing a spending plan, it is a good idea to keep a _____________ record of your income and expenses for two or three months.

7. The way you decide to spend your money depends upon your _____________. Talk with household members about mutual needs -- if everyone takes part in making a spending plan, they will all work harder making it successful.

According to the site, the first step is figuring your income and estimating expenses. By recording what you spend, your estimated expenses will be more realistic.

Learn about household budgeting with this report:

http://www.uaex.edu/Other_Areas/publications/pdf/FSHEC-42.pdf

By the way, the correct quiz answers are: 1. Business; 2. Goals; 3. Income; 4. Debt; 5. Expenses; 6. Written; 7. Values

Reprinted with permission from RISMedia. ©2013. All rights reserved.