A Fool and His Money Are Soon Parted

A Fool and His Money Are Soon Parted
Image: Getty Images, jamie grill

About This Quiz

In tough economic times, we all start to look at trimming our expenses. Take the budgeting quiz to find out how savvy you are with your money and get a few money-saving tips along the way.
A mortgage payment would count on your budget as a:
fixed expense
A mortgage payment is a fixed expense because you can predict you'll pay it on a consistent basis. Other fixed expenses include other loan payments, tuition, rent and fixed utilities that don't vary from month to month.
unfixed expense
discretionary expense

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In case you lose your job tomorrow, about how much should you have in your emergency fund?
enough to live comfortably for two to three days
enough to live comfortably for two to three weeks
enough to live comfortably for two to three months
A typical financial planner will advise you to try to make an emergency fund with enough money to get by two to three months without any other income.

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Which of the following accounts is the best place to keep an emergency fund?
money market account
Using a money market account for an emergency fund can help you make money on your savings while you aren't using it. Money markets draw more interest than basic savings or checking accounts, and you can still get to the money if you need it.
savings account
checking account

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What's a smart way to save money on prescription drugs?
buy half your dosage
buy generic
Generic prescription drugs are chemically identical to brand name, so it is cheaper and not unsafe to defer to generic. Just ask your doctor to prescribe the generic version of your drugs.
neither of the above -- you shouldn't scrimp on drugs

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Which of the following is NOT a smart way to stay on budget?
delay paying off credit card debt
A large part of improving your financial situation means getting out of debt, and the longer you wait to pay off credit card debt, the more you'll have to pay in the long run. Making a grocery list and using cash are both good ways to stay on track.
make a grocery list
use cash

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What is a discretionary expense?
an expense that you may or may not need depending on your situation
an expense that you want but don't need
A discretionary expense is one that you don't need but would like to have.
an expense that you need but don't want

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At the grocery store, you can save money by buying:
pre-seasoned meat
pre-cubed meat
plain cuts of meat
While pre-cubed, pre-pounded or pre-seasoned meats or poultry can save you preparation time, they cost a lot more than plain cuts of meat. If you can spare a few minutes to cut, pound or season your meat, you'll find the savings are significant.

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Which of the following would be the most appropriate alternative to an emergency fund?
a credit card
a home equity line of credit
Some critics say that putting money into an emergency fund is illogical if you have a Home Equity Line of Credit (HELOC). HELOCs come with checks that you can write immediately in the case of an emergency, and you can repay the money once you are past the disaster. However, you must figure in the interest and fees. Using HELOCs can be dangerous if you're not careful.
parents

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What's a good way to save money on gas?
shift to neutral when stopped
don't ride on the brake
both of the above
Both shifting to neutral when you are at a long traffic light and not riding on the brake will improve fuel economy and save you money on gas.

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Which of the following is a benefit of staying within budget?
happier marriage
less stress
both of the above
Money difficulties are known to cause stress, which in turn even make your immune system weaker. In addition, money problems and arguments are a major cause of divorce.

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You Got:
/10
Getty Images, jamie grill
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