Personal Finance Review

You mow neighbor’s lawn

• Income

• Expense

You get allowance

• Income

• Expense

You go to the movies

• Income

• Expense

Savings is...

• Money you have spent.

• Your allowance.

• All the money you have saved.

• Using coupons.

What is a budget?

• a group that helps the community

• a safe place where people keep money

• a center where you can donate things

• a plan for spending and saving money

Which is good advice for saving and spending money?

• Spend all of your allowance as soon as you earn it.

• Use a budget to plan how much money you can save.

• Try to buy things that you want before the things that you need.

• Buy things you use only once, and then throw them out.

The goal of a budget is to SAVE more than you SPEND.

• True

• False

People keep a personal budget to help them

• set and reach financial goals.

• earn promotions at work.

• buy with credit.

• buy anything they want.

I had to give up going out to dinner in order to buy a new shirt. This is an example of

• opportunity cost

• price incentive

• specialization

• poor planning

Michael has been invited by a friend to go fishing on Friday. His parents are going to a concert. Michael chooses to go fishing with his friend. What is his opportunity cost?

• fishing with a friend

• going to a concert