Personal Finance Review

Why is creating a budget so important? (Select all that apply)

• It can help you reach your savings goals for what you want or need.

• It can help keep you out of debt.

• It can help you keep track of your neighbor's financial habits.

• It can help you get a better job.

What may the bank do with the money in your savings account?

• Use it to create a sculpture in the bank

• Use it to throw a party

• Use it to give out loans to other customers

What are the benefits of putting money in a savings account or investing it.

• You earn Interest or make more money

• You get free gifts

• You pay a fee for safety

• Nothing

Adele needs to plan for a large-scale purchase. What is her BEST option?

• Put money into a savings account

• Use a credit card

• Take out a loan

• Ask a family member for a loan

Mia wants a new phone, but she needs a new notebook for class. What should she do?

• Buy the notebook and put away money for the phone.

• Buy the phone and put away money for the notebook.

• Buy the notebook and tell Moby to buy her the phone.

• Buy the phone and use Moby's notebook for a while.

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

For which item would someone MOST LIKELY need to save money in order to

purchase?

• a new shirt

• a new washing machine

• a hair dryer

• a video game

What is NOT a reason that people usually save money?

• to buy special things for the future

• to have money for emergencies

• to make a payment on an expensive item

• to buy basic necessities

Which of the following is a basic fundamental principle?

• DON'T spend more money than you earn

• Use a credit card when you can't afford a need or want

• Save for big purchases

• Take out loans for basic needs so you can get the things you want