Unit 7 Exam: Personal Budgets Name: ______________________________

Use the following information to answer questions 1 –3

George’s Monthly Budget

Income Expenses

Semi-Monthly Pay $900.00 Rent $625.00

Semi-Monthly Pay $900.00 Car $330.00

Birthday Money $200.00 Groceries $330.00

Entertainment $210.00

Miscellaneous $225.00

TOTAL TOTAL

1. What percentage of his income does George spend on groceries?

a. 18% b. 17% c. 37% d. 33%

2. George’s “Birthday Money” is an example of

a. Regular income. c. Variable expense.
b. Recurring expense. d. Variable income.

3. How much money does George spend on rent in one year?

a. $32 500.00 c. $6250.00
b. $7500.00 d. $625.00
4. Julie’s monthly income is $2152.50. She can put 32% of her income towards paying monthly
rent. How much does she pay for rent?
a. $68880.00 c. $8265.00
b. $688.80 d. $57.40

5. Which of the following is the best example of a recurring expense?

a. $250.00 per month on food.
b. $450.00 per month on rent.
c. $75.00 per month on entertainment.

6. Which scenario best describes a balanced budget?

a. Total income is greater than total expenses.
b. Total income is less than total expenses.
c. Total income is equal to total expenses.
Section B: Short Answer
Read all of the questions carefully. Show all of your work!

1. Hannah has made a list of her incomes and expenses for one month.

a. Calculate the Hannah’s total income and total expenses for one month. (1 mark)

b. Does Hannah have a deficit or a surplus? Explain. (1 mark)

c. How much is Hannah able to save each month? (1 mark)

d. What percentage of her income do her savings (the answer in c.) represent? (1 mark)

e. After 6 months, Hannah wants to buy a new bicycle that costs $1199.99. Will she have
enough money saved? (1 mark)
2. Pierre has kept a record of his spending over the past 4 months. He earns monthly pay of
$2951.18.
Average Monthly $

a. Use this information to calculate his average monthly expenses in each category for the
4-month period. (2 marks)

b. Create a budget for Pierre using the AVERAGEs from the table above. (4 marks)

Pierre’s Conservative Budget

Income Expenses

Total: Total:

c. Approximately how much will he save in a month? A year? (1 mark)

3. Sean is creating a monthly budget.

a. Calculate his total income and expenses. (1 mark)

b. Is his budget balanced? Explain. (1 mark)

c. Create a circle graph of Sean’s spending. (3 marks)

[Make sure to show all of your calculations.]

d. Spending guidelines suggest housing should account for 30–35% of total income. Is
Sean’s spending within these guidelines? What is the minimum and maximum
amount he should spend on housing? (2 marks)