Personal Finance Review

Which of the following best describes income?

• Money given to a charity that helps others.

• Money received for completing a chore or task.

• Money received from a parent to pay for lunch.

• Money spent on new clothes and shoes for school.

What is given up when a decision is made.

• opportunity cost

• scarcity

• resources

Ben was given a choice between a purple popsicle and red popsicle.   He choses the red popsicle. What is the opportunity cost?

• red popsicle

• purple popsicle

You go to the movies

• Income

• Expense

You get a present for friend’s birthday

• Income

• Expense

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.

A budget is a list of

• income and expenditures

• things to buy

• how much to save

• needs and wants

Which of the following is a benefit of having a personal savings plan?

• People who save money can spend a lot of money right now.

• People who save money can spend more money in the future.

• Personal savings plans help people have an unbalanced budget.

• Personal savings plans let people spend more time doing activities they enjoy

Why is it important to keep a budget?

• Budgets make sure you do not spend more money than you can afford.

• Budgets can help you save for large purchases.

• Budgets show you how much money you get and spend.

• All of the above.