Quiz 1: Budgeting Basics

Question 1: What is the 50/30/20 rule?

a) 50% savings, 30% spending, 20% debt repayment

b) 50% needs, 30% wants, 20% savings/debt repayment

c) 50% investments, 30% housing, 20% food

d) 50% income, 30% expenses, 20% charity

Question 2: Which of these is a variable expense?

a) Rent

b) Car payment

c) Groceries

d) Insurance premium

Question 3: What is the primary purpose of an emergency fund?

a) To invest in the stock market

b) To cover unexpected expenses

c) To pay for luxury items

d) To save for a down payment on a house