Unit 8 Practice Test

Front

What is an unplanned spending decision?

Back

An unplanned spending decision is when you buy something without planning or saving for it beforehand. For example, deciding to buy the first pair of shoes you see at the mall.

Front

What factors can affect how much someone is paid at their job?

Back

Factors that can affect pay include the number of years worked, special skills, and level of education. Reading books does not affect pay.

Front

Why might someone use a credit card for unexpected expenses?

Back

Someone might use a credit card for unexpected expenses if they do not have enough cash to pay for something urgent, like a repair.

Front

What is an example of a spending decision?

Back

Buying a new toy with birthday money is an example of a spending decision.

Front

What should Mia do if she wants to buy a shirt but doesn't have enough cash?

Back

Mia could use her credit card to buy the shirt since she doesn't have enough cash.

Front

What is a credit card?

Back

A credit card is a card that allows you to borrow money from a bank to make purchases, which you must pay back later.

Front

What does it mean to budget?

Back

Budgeting means planning how to spend your money wisely, including saving and spending.

Front

What is the difference between planned and unplanned spending?

Back

Planned spending is when you save money for something specific, while unplanned spending is when you buy something on impulse.

Front

What is a bank account?

Back

A bank account is a place where you can keep your money safe and manage your savings and spending.

Front

What is an allowance?

Back

An allowance is money given regularly, often by parents, to children to spend or save.