Household Budget & Money Management

Question 1: What is the first step in creating a household budget?

• Setting financial goals

• Tracking your income and expenses

• Saving money

• Investing in stocks for future wealth

Question 2: Which of the following is considered a fixed expense?

• Groceries

• Rent or mortgage

• Entertainment

• Eating out / takeaway food

Question 3: What is the purpose of an emergency fund?

• Paying off credit card debt

• Funding a holiday

• Investing in the stock market

• Covering unexpected expenses

Question 4: To improve your credit score, you should:

• Keep a low credit card balance and pay your instalments every month

• Spend up to your credit card limit and keep it there

• Ignore your credit scores/reports

• Pay your bills late - better late than never

Question 5: What does "APR" stand for in the context of loans and credit cards?

• All Payments Required

• Average Payment Requirement

• Annual Percentage Rate

• Annual Personal Rate

Tags

CCSS.7.RP.A.3

Question 6: How often should you review and adjust your budget?

• Once a year
• Regularly, such as monthly or quarterly

• Every five years

• Whenever you get a raise in income

Question 7: What is the purpose of a "sinking fund"?

• To invest in the stock market

• To pay off debt

• Saving for retirement

• Saving for a specific future expense

Question 8: Which of the following is a tax deduction that doesn't change depending on your income?

• Council Tax

• National Insurance

• Value Added Tax (VAT)

• Income Tax

Question 9: When shopping online, what should you look for to ensure a website is secure for making payments?

• A padlock icon in the address bar

• Beautifully designed website

• A long URL - the longer, the better

• No contact information provided

Question 10: What's a good strategy for reducing debt?

• Making only minimum payments

• Ignore the debt and hope it goes away
• Take a loan to pay off existing debt

• Pay off high-interest debts first