2. Why are small, specific categories recommended over traditional, broad categories?
(a) Smaller categories allow people to determine which purchases bring only temporary happiness.
(b) Broad categories work only for high-income individuals.
(c) Broad categories cost more life energy.
(d) Specific categories are easier to place on a chart.

3. Most Americans divide their discretionary time equally between what two activities?
(a) Eating and drinking.
(b) Working and spending.
(c) Family and friends.
(d) Leisure and retirement.

4. What determines mastery of Step 3?
(a) When the actual money left at the end of the month equals the amount shown by recordkeeping.
(b) When life energy equals net worth.
(c) When gross income has been determined.
(d) When income exceeds spending.

5. Why are vacations considered to be a work expense?
(a) They are required by law.
(b) They are necessary to relieve work-related stress.
(c) Most employees take laptops or cell phones on vacation.
(d) Only employed individuals can afford vacations.

Short Answer Questions

1. If people spend half of their time sleeping, eating, and doing everything necessary for maintaining their bodies, then the other half is available for what?

2. What is the final part of Step 3?

3. What are piggy banks and cookie jars examples of?

4. Why should readers not use premade categories from other budget books?

5. What broad category are alcohol and tobacco subcategories of?

(see the answer key)

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