Mastering Personal Budgets

What is the first step in creating a personal budget plan?

• Estimate your monthly income

• List all your wants

• Go shopping and keep the receipts

• Set long-term financial goals

Which of the following would be considered a 'need' rather than a 'want'?

• A new video game

• A monthly bus pass for getting to school

• A subscription to a music streaming service

• Designer clothing

How do you calculate your total monthly expenses?

• Add up all your bills and spending for one month

• Guess how much you spend in a month

• Look at your yearly expenses and divide by 12

• Only calculate the expenses for needs, not wants

Tags

CCSS.4.MD.B.4

Which of the following would be considered a source of income for a student?

• Pocket money from parents

• Money found on the street

• A loan from a friend

• The cost of textbooks

Why is it important to set financial goals when creating a budget?

• To ensure you spend all your money each month

• To have a clear target for saving and spending

• To impress your friends with how much you can spend

• To make budgeting more complicated

What is a smart strategy for tracking your budget?

• Check your budget once a year

• Write down every purchase and income source

• Only track your expenses, not your income

• Ask others to track your spending for you

If you spend more than you earn in a month, what should you do?

• Continue spending the same way

• Borrow money to cover the difference

• Adjust your budget to reduce expenses

• Increase your wants to improve happiness

Tags

CCSS.6.RP.A.3B

What might be a reasonable financial goal for a student?

• Buying a new car

• Saving for a video game

• Investing in the stock market

• Purchasing a house

When should you review and adjust your budget?

• Only when you run out of money

• Once every few years

• Monthly, to reflect changes in income and expenses

• Never, once a budget is set it should not be changed

What is a benefit of differentiating between needs and wants in your budget?

• You can eliminate all wants to save money

• It helps prioritize spending and can lead to better savings

• It allows you to spend more on wants

• Needs are always cheaper than wants