Personal Finance Test Review

Front

What is an amount of money spent to buy goods and services for yourself or business?

Back

Expense

Front

What is a spending plan for managing money during a given period of time?

Back

Budget

Front

What is something owed to another-- an obligation to pay?

Back

Debt

Front

Which of the following is NOT a need: Food, Clothes, Netflix, Shelter?

Back

Netflix

Front

What is something you identify and work on to achieve?

Back

Goal

Front

What is the difference between needs and wants?

Back

Needs are essential for survival (e.g., food, shelter), while wants are non-essential items that enhance quality of life (e.g., luxury items).

Front

What is a fixed expense?

Back

An expense that does not change from month to month, such as rent or mortgage payments.

Front

What is discretionary spending?

Back

Money spent on non-essential items or services, such as entertainment or dining out.

Front

What is the purpose of a budget?

Back

To track income and expenses, ensuring that spending does not exceed income.

Front

What is an emergency fund?

Back

A savings account set aside for unexpected expenses or financial emergencies.