Plan ahead with sinking funds: test your skills
Car registration, holiday gifts, and annual premiums aren't surprises — you just haven't saved for them yet. Answer each question to see the explanation; your score appears at the end.
This test checks that you can
- Turn irregular bills into monthly amounts
- Keep sinking funds apart from the emergency fund
- Catch up when a bill is already close
- Practice
1. A sinking fund is for…
- Practice
2. How do you work out the monthly amount?
- Practice
3. Why keep sinking funds apart from the emergency fund?
- Key idea
4. Which statement best explains "Predictable is not the same as monthly"?
- Key idea
5. Which statement best explains "Divide by months remaining"?
- Key idea
6. Which statement best explains "Label every bucket"?
- Action plan
7. In the action plan, which step comes first?
- Mistake to avoid
8. Which of these is a mistake this lesson warns against?
- Mistake to avoid
9. Which of these is a mistake this lesson warns against?
Your $540 car registration is due in 9 months. How much per month?
Show the answer
$60 a month
$540 ÷ 9 = $60.
Find one bill you pay once or twice a year. Divide it by the months until it is due and set up that transfer.
More tests in this bootcamp
- How to budget with the 50/30/20 rule
- How to build a zero-based budget in simple steps
- Sort your spending: fixed costs, flexible costs and choices
- Let your receipts reveal where your money goes
- Plan ahead with sinking funds
- Build a budget when your income changes
- Pause before you buy: manage impulse spending
- Keep more of your raise: avoid lifestyle inflation
- Make a monthly money check-in work for you
- Read your utility bill and find ways to use less
- Final exam: Budgeting and cash flow