Personal Finance Test

1. What does it mean to have a balanced budget?

• A. income is equal to or more than the expenditures

• B. Expenditures are equaled spend out in the budget

2. What is NOT a reason that people usually save money?

• A. to buy basic necessities

• B. to have money in case of emergencies

3. What are the main elements of a personal budget?

• A. Income, housing, expenditures

• B. Income, expenditures, savings

4. Why is it important to prepare and follow a budget?

• B. A budget helps people to determine educational decisions

• D. A budget helps people make responsible economic decisions

5. Which of the following people would benefit MOST from a personal budget?

• A. Lisa, who spends less money than she earns

• B. Roger, who doesn’t have enough money to pay his bills

6. The INCOME section of a personal budget

• A. only includes income from a person’s job

• B. shows all of a person’s income from any money they receive

7. Which of the following is the most financially responsible decision?

• A. Betty earns $75 babysitting. She spends $5 on Starbucks and puts the other $70 in the bank.

• B. Tommy gets $50 for his birthday from his grandpa. He spends $80 on Xbox games

8. What title BEST completes this list of items?

1) Financial Security

2) More spending power

3) Feeling of accomplishment

4) Extra money from bank interest

• A. Reasons to save money

• B. Reasons to go to college

9. Which of the following should Alex consider when planning his monthly personal budget?

• A. How much ice cream he will buy at school

• B. How many Pokémon cards he will trade with his friend

11. Lucy receives an allowance each week. Lucy keeps spending all her money each week. So Lucy asks her mom for a bigger allowance. What should Lucy include in her budget to show her mom that she needs an increased allowance?

• A. Lucy should make a list of how she spent her allowance in the past year.

• B. Lucy should make a list of her allowance and how much she spends.