Your Financial Future

Which two things does a budget compare?

• Savings and Interest

• Income & Investments

• Income & Expenses

• Expenses & Interest

Which of the following is a true statement about budgets?

• They Encourage people to spend as much money as possible

• They allow people to track how and where their money is spent

• Setting up a budget will allow you to earn more money

• The idea behind keeping a budget is to spend exactly as much as you earn

If your income is $20 per month, how much should you spend each month to stay on budget? Choose the best answer.

• Exactly $20

• Between $10 and $30

• Nothing

• $20 or less

What are savings?

• The money used for consumption

• Income that has built up a lot of interest after being borrowed

• Income not used for consumption

• Income spent quickly

What is a Fixed Expense?

• Expenses that change from month to month (Eating out, clothing, groceries, etc.)

• Expenses that remain the same from month to month (Car payment, House Payment, etc.)

What is a Variable Expense?

• Expenses that remain the same from month to month (Car payment, House Payment, etc.)

• Expenses that remain changes from month to month (Clothing, groceries, etc.)

What is one common consequence of going into Bankruptcy (when you're unable to pay your great debt)?

• Having some of your possessions taken away

• Losing your job

• Losing the ability to make a budget

• going to prison

What is one advantage of having a Credit Card?

• It prevents you from spending more than you earn

• It allows you to make purchases without carrying lots of cash

• It encourages you to budget your money wisely

• It helps you pay off any debts that you may have

How do Credit Card Companies make money?

• By charging interest to the stores that you purchase from

• By earning interest on the money they have saved up

• By making customers pay an extra dollar on every purchase

• By charging late fees and interest to their customers

What is income?

• Your earnings from work or investment

• The currency that a country uses

• A plan for saving your money

• Money owed to someone or something