Unit 3 Test Review

Which of the following is a reason you should use a budget plan?

• Track where money is going

• Identify income & expenses

• Meet financial goals

• All of the above

What does it mean to "pay yourself first" when you get a paycheck?

• Go on a shopping spree

• Spend all of your money

• Put money into your savings account first, before you do any kind of spending

• Put some of your money in your account and donate the rest

What is income?

• Spending money

• Saving money

• Earning money

• Investing money

What is expense?

• Saving money

• Spending money

• Investing money

• Earning money

Net gain is when...

• Expenses are greater than income

• Income is greater than expenses

Net loss is when...

• Income is greater than expenses

• Expenses are greater than income

What is a spending plan/budget?

• Spending money

• A tool to help manage how you spend your money.

• Wasting money

• A tool used to invest your money

When you purchase a stock you are purchasing a share in/of a company.

• True

• False

Bonds are a great way to invest because there is zero risk.

• True

• False

A bag of money is...

• Income

• Expense