Budgeting-NGPF Exam Questions with Correct Answers Latest Update 2025-2026
50/30/20 Budget - Answers A budgeting method that allocates 50% to needs, 30% to wants, and
20% to savings and debt repayment
Auto Lease - Answers A type of auto financing that allows you to "rent" a car from a dealership
for a certain length of time and amount of miles. Once the time period ends, you either return
the car or purchase the car if that is an option in your contract.
budget - Answers A plan for making and spending money
Cash Envelope Budget - Answers A budgeting method where money for monthly spending is
taken out in cash and placed in labeled envelopes according to budget categories. Spending
occurs only from the corresponding envelopes.
cost of living - Answers The amount of money needed to sustain a certain level of living,
including basic expenses such as housing, food, taxes, and healthcare; often used when
comparing how expensive it is to live in one city versus another
deduciton - Answers any items subtracted from your paycheck, including state and federal
income taxes, social security, health insurance or 401 k contributions
deficit - Answers When your expenses exceed your income
down payment - Answers a portion of the total cost of an item that must be paid at the time of
purchase
expenses - Answers Items or services you pay for such as rent, groceries, entertainment, bills,
etc.
fixed expenses - Answers Costs that can be expected at regular intervals and that remain the
same amount
freelancer - Answers An individual who earns money on a per-job or per-task basis, usually for
short-term work. They are not an employee of an organization.
gig economy - Answers a labor market characterized by the prevalence of short-term contracts
or freelance work as opposed to permanent jobs.
gross pay - Answers the total amount of an employee's earnings before deductions are taken
out
income - Answers money received, especially on a regular basis, for work or through
investments.
needs - Answers things that are required in order to live
50/30/20 Budget - Answers A budgeting method that allocates 50% to needs, 30% to wants, and
20% to savings and debt repayment
Auto Lease - Answers A type of auto financing that allows you to "rent" a car from a dealership
for a certain length of time and amount of miles. Once the time period ends, you either return
the car or purchase the car if that is an option in your contract.
budget - Answers A plan for making and spending money
Cash Envelope Budget - Answers A budgeting method where money for monthly spending is
taken out in cash and placed in labeled envelopes according to budget categories. Spending
occurs only from the corresponding envelopes.
cost of living - Answers The amount of money needed to sustain a certain level of living,
including basic expenses such as housing, food, taxes, and healthcare; often used when
comparing how expensive it is to live in one city versus another
deduciton - Answers any items subtracted from your paycheck, including state and federal
income taxes, social security, health insurance or 401 k contributions
deficit - Answers When your expenses exceed your income
down payment - Answers a portion of the total cost of an item that must be paid at the time of
purchase
expenses - Answers Items or services you pay for such as rent, groceries, entertainment, bills,
etc.
fixed expenses - Answers Costs that can be expected at regular intervals and that remain the
same amount
freelancer - Answers An individual who earns money on a per-job or per-task basis, usually for
short-term work. They are not an employee of an organization.
gig economy - Answers a labor market characterized by the prevalence of short-term contracts
or freelance work as opposed to permanent jobs.
gross pay - Answers the total amount of an employee's earnings before deductions are taken
out
income - Answers money received, especially on a regular basis, for work or through
investments.
needs - Answers things that are required in order to live
