SSPFL2AB Budgeting

Multiple Choice

Which of the following is most likely considered a 'need' rather than a 'want'?

• Buying groceries

• Going to the movies

• Purchasing designer clothes

• Eating at a fancy restaurant

Open Ended

Why is it important to understand the difference between needs and wants when managing a budget?

Multiple Choice

Which of the following best describes budgeting?

• A plan for how income is spent and saved

• A way to increase income

• A method to avoid all expenses

• A strategy for borrowing money

Open Ended

Explain why budgeting is important for managing personal finances.

Multiple Select

Select all the reasons why income is considered scarce.

• Income is limited

• Choices must be made

• Income is unlimited

• Expenses are always predictable

Open Ended

Why is it important to review your finances regularly?

Multiple Choice

Which of the following is considered a short-term goal?

• Buying a car

• Emergency fund

• Homeownership

• Retirement

Open Ended

Describe how your personal goals might fit into the categories of short-term, medium-term, and long-term goals.

Multiple Choice

Which of the following is NOT an example of a long-term goal?

• Homeownership

• Retirement

• School supplies

• 5+ years

Multiple Select

Select all items that are classified as 'wants'.

• Utilities

• Entertainment

• Trendy items

• Food

Multiple Choice

Which of the following is considered a 'need' rather than a 'want'?

• Entertainment

• Food

• Trendy items

• Luxury car

Open Ended

Explain how budgeting choices can help prioritize needs over wants.

Multiple Choice

Which of the following is NOT mentioned as a key takeaway from the lesson?

• Budget intentionally

• Plan for goals

• Save for emergencies

• Set spending limits

Open Ended

Why is it important to plan for goals when creating a budget?

Open Ended

How can setting savings goals help you manage a scarce income more effectively?

Multiple Choice

What is the difference between needs and wants when creating a budget?

• Needs are essential expenses required for survival, while wants are non-essential items or services.

• Needs are things you can live without, while wants are things you must have.

• Needs are always more expensive than wants.

• Needs are only related to savings goals.