Financial Wellness Quiz for 12 Year Olds

What is the importance of budgeting for your allowance and expenses?

• It helps you track your spending and make sure you have enough money for the things you need.

• You should spend all your allowance without worrying about budgeting

• Budgeting is only for adults

• It has no impact on your financial health

How can you create a budget for your weekly allowance and expenses?

• Ask your parents to handle all your expenses for you

• Create a list of income you have received and your expenses, allocate specific amounts for each category, and stick to it.

• Don't bother creating a budget, just spend as you please

• Guess randomly and hope for the best

Why is it important to save money for the future?

• To have no savings and live paycheck to paycheck

• To spend all the money on immediate wants

• To be prepared for unexpected expenses and achieve long-term financial goals.

• To rely on others for financial support

What are some ways you can save money as a 12 year old?

• Borrow money from friends and family

• Ignore the concept of saving money

• Do chores for allowance, avoid impulse purchases, and save a portion of any money received as gifts or for doing extra tasks.

• Spend all money on toys and games

Can you give an example of a need and a want?

• Food and water (need) vs. video game (want)

• Medicine and healthcare (need) vs. new phone (want)

• Clothing and shoes (need) vs. pet dog (want)

• Air and shelter (need) vs. bicycle (want)

How can you differentiate between a need and a want when making a purchase?

• By flipping a coin to decide

• By asking a friend for their opinion

• By determining if the item is essential for survival or simply something desired for enjoyment or luxury.

• By choosing the most expensive option

Why is it important to set financial goals?

• To waste money and never achieve anything

• Because financial goals are not important at all

• To better manage one's money

• To make it harder to manage money and achieve desired outcomes

What are some examples of financial goals you can set for yourself?

• Saving for a particular purpose eg. buying friend a gift

• Saving to give back money to your parents/another family member

• Saving to maintain an emergency fund

• Saving to lend money to a friend or a family member

What is interest and how does it work?

• Interest is the cost of buying a new car. Using a loan

• Interest is the amount of money you earn from doing chores. If you work harder you get more interest.

• Interest is the name of a popular TV show. It works by adding what you owe with what you have.

• Interest is the return on invested funds. It works by calculating a percentage of the principal amount and adding it to the total.

Can you explain the concept of a loan and how it is different from saving money?

• A loan is when you receive money from the bank, while saving money is when you spend all your money on things you want

• A loan is when you give money to someone else, while saving money is when you keep all your money at home

• A loan is when you invest in the stock market, while saving money is when you buy things you need

• A loan involves borrowing money with interest, while saving money is putting money aside for future use without borrowing.