Quick Check — five real-life decisions

1Sara’s take-home pay is $2,800 a month. Rent, food, transport, phone and childcare add up to $2,300. Once a year she also pays car registration ($120) and school supplies ($180). About how much can Sara really decide about each month?

• A$500 — income minus monthly bills
• B$475 — after setting aside $25 a month for the yearly bills
• C$200 — she should keep most of it for surprises
• D$0 — there is nothing left after rent

2Which of these is a good use of an emergency fund?

• AA summer trip to visit family, planned since January
• BA surprise dentist bill after a bad toothache
• CA big TV that is on sale this weekend only
• DCar registration that is due next month, like every year

3Ahmad’s family usually has about $30 left at the end of the month. What is the most helpful first step?

• AWait until they earn more, then start saving
• BSave $5 a week in a separate account and look at repeating charges
• CSkip saving — $30 is too small to matter
• DStop sending money to family abroad

4Rosa’s neighbor says every family must follow 50 / 30 / 20. Rosa’s rent alone is 48% of her take-home pay. What is true?

• ARosa is doing something wrong
• B50/30/20 is a starting point; families with high rent adjust the numbers
• CRosa should move to a cheaper apartment this month
• DRosa cannot budget until her rent is lower

5Nadia and Marco’s car needs an $850 repair. Marco needs the car for work. They have $150 saved. Which option usually costs the least in money and risk?

• APay rent late this month and fix the car
• BPut $700 on a credit card and pay the minimum for a year
• CAsk the repair shop for a payment plan and get it in writing
• DDo not fix the car