Financial Education - Basics

1: What is a budget?

• An estimate of the money you expect to earn and spend.

• A shopping list.

• A way to save money.

• To want more money

2: Why is it important to create a budget?

• To know how much money your friends have.

• To control your money and make smart choices about how to spend it.

• To show off your financial skills.

3: What does "spending" refer to?

• The act of saving money for the future.

• The act of using money to buy goods and services.

• The act of investing money in the stock market.

4: Which of the following is an example of a fixed expense?

• Buying a new video game.

• Going out for dinner with friends.

• Paying monthly rent.

5: What does it mean to "save" money?

• To spend money on unnecessary things.

• To put money aside for future use.

• To donate money to charity.

6: Which of the following is an example of a variable expense?

• Buying new clothes.

• Monthly electricity bill.

• School tuition fees.

7: What is the purpose of an emergency fund?

• To buy expensive items.

• To cover unexpected expenses or emergencies.

• To invest in the stock market.

8: What does it mean to "prioritize" your spending?

• To spend money randomly.

• To spend money on things you want but don't need.

• To spend money on things that are most important to you.

9: What is the benefit of tracking your expenses?

• It encourages you to overspend.

• It helps you understand where your money is going.

• It helps you spend money without a plan.

10: What is the relationship between income and expenses in a budget?

• Income should be higher than or equal to expenses.

• Income and expenses are not related.

• Expenses should always be higher than income.