A Fool and His Money Are Soon Parted

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Staff

4 Min Quiz

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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:

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.

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In case you lose your job tomorrow, about how much should you have in your emergency fund?

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?

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.

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What's a smart way to save money on prescription drugs?

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.

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Which of the following is NOT a smart way to stay on budget?

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.

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What is a discretionary expense?

A discretionary expense is one that you don't need but would like to have.

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At the grocery store, you can save money by buying:

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?

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.

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What's a good way to save money on gas?

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?

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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