The Ultimate How Much Money Do You Really Need to Live Quiz

By: Staff
Image: refer to hsw

About This Quiz

Many people experience a time in their lives when they are financially tight. You look back on things you spent your money on and wish you had saved it instead. When making purchase decisions, it's often difficult to decide whether we really should be buying something or not. Take our quiz and learn how much money you really need to live on.

What did economist Julian Simon say about the economic situation today?

Simon said that "there is no such thing as a free lunch, but at least its getting cheaper and cheaper." To live within our means does not necessarily mean living a live of deprivation and poverty.

How can we work out how much we really need to live?

To work out how much money we really need to live, we must separate our wants from our needs.

What major factor contributes to how we decide what we need to live?

According to renowned economist Adam Smith, the major factor in deciding how much we need to live is social pressure. If we will be embarrassed by our lack of something, we will most likely purchase it, even if it is beyond our means.

How does the U.S. government measure poverty?

The U.S. government measures absolute poverty, which is based on the costs of necessary things like housing and food.

How did Mollie Orshansky define the poverty threshold?

Orshansky defined the poverty threshold with this formula: she added up the costs of foods that make up an adequate diet (according to the U.S. Department of Agriculture), and multiplied it by three (because a 1950s census determined that most households spend one third of their income on food). The U.S. government uses this formula to determine the poverty threshold.

Currently what percentage of income is spent on food in the average American family?

Some researchers say that currently, households spend only one seventh of their income on food, which is why they say the poverty threshold needs to be reassessed.

What percentage of America's poor own televisions?

Fully 97 percent of America's poor own televisions; 62 percent have cable or satellite.

What causes people to make unnecessary purchases?

The accessibility of credit enables people to purchase things they cannot afford.

Why is buying generic products a good idea?

Generic products, especially generic medications, are identical to branded products, just without the label and the price tag.

What is a good, inexpensive protein source?

Eggs are a vitamin and mineral rich, inexpensive source of protein.

When should you buy an item on sale?

Just because something is a bargain, it doesn't mean you should buy it. Buy something only if you need it, or you know it will save you money when buying a similar item at a later date.

What is the average annual amount people spend on buying lunch?

It is estimated that people spend $ 960 a year on buying lunch for work. Preparing food at home saves a significant amount of money.

What is the downside of buying health foods?

Health foods are pricier than regular foods. But there are some ways to eat healthy on a budget. For example, purchase canned tomatoes; they contain a greater concentrate of the antioxidant lycopene.

What is the poverty threshold in the U.S.?

In 2007, an income of $ 10,590 per annum was considered the poverty threshold for one person; $ 21,027 a year was considered the threshold for a family of four, with two children under 18.

Why do some people say they are against raising the minimum wage?

Opponents of the proposal to raise the minimum wage say it won't help reduce poverty; employers will downsize either by firing people or reducing their hours.

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