Financial Literacy Budgeting

Budgeting

What is a budget? (article) | Budgeting | Khan Academy

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Multiple Choice

What is a budget?

• A plan that helps you manage your money

• A plan that helps you spend all your money

• A plan that helps you avoid saving money

• A plan that helps you borrow money

Multiple Choice

Why do you need a budget?

• To spend all your money on everything you want

• To prioritize your expenses and make smart decisions

• 
  To borrow money from others

• To run out of money quickly

Multiple Choice

What does income refer to?

• The money you owe to someone else

• The money you save for your goals

• The money you earn or receive from different sources

• The money you spend on different things

Multiple Choice

What are goals in budgeting?

• The things you want to borrow money for

• The things you want to do or have with your money

• The things you want to avoid spending money on

• The things you want to give away for free

Multiple Choice

How can a budget help you avoid or reduce debt?

• By borrowing money without a clear plan for repaying

• By spending more than you earn

• By damaging your credit score

• By paying off your bills on time

Planning a budget: How do you start? (article) | Khan Academy

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How do you build a budget? (article) | Khan Academy

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Multiple Choice

What is the first thing the instructor starts with when creating a budget?

• Listing wants

• Analyzing spending habits

• Calculating after-tax income

• Determining savings goals

Multiple Choice

What percentage of the after-tax income is allocated to needs in the example budget?

• 20%

• 30%

• 59%

• 50%

Multiple Choice

Which of the following is considered a want in the example budget?

• Groceries

• Car insurance

• Electricity bill

• Gym membership

Multiple Choice

What is the total amount allocated to wants in the example budget?

• $3,000

• $1,780

• $795

• $460

Multiple Choice

What is the main reason the savings in the example budget are not at the desired 20%?

• Lack of savings goals

• Insufficient after-tax income

• Overspending on wants

• Overspending on needs

Multiple Choice

What is one way to modify the budget to get closer to the 50/30/20 rule?

• Increase grocery spending

• Get a more expensive car

• Upgrade to a fancier cell phone plan

• Rent a smaller apartment

Multiple Choice

What is the recommended percentage of after-tax income to be allocated to savings in the 50/30/20 rule?

• 50%

• 59%

• 20%

• 30%

Multiple Choice

What is the benefit of saving more than the recommended 20%?

• Increased spending on wants

• Higher credit score

• Reduced stress

• Improved financial security

Multiple Choice

What is the importance of tracking expenses and analyzing spending habits?

• To set savings goals

• To modify lifestyle choices

• To calculate after-tax income

• To determine wants and needs

Multiple Choice

What is the instructor's advice for becoming more conscientious about spending habits?

• Avoid budgeting exercises

• Ignore monthly savings targets

• Rely on credit card statements

• Track expenses before doing the math

Poll

Does your family discuss money and budgets openly?

• Yes

• No