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What should decide your living expenditures each month?

• Your friends' spending habits

• Income, money coming in

• The latest fashion trends

• Random selection

What advantages come from saving money?

• Savings can lead to overspending

• Savings can cause financial stress

• Savings can help ease unexpected events that may cause expensive purchases

• Savings have no real advantages

How can saving money lead to more financial freedom and security?

• Saving can increase daily expenses

• Saving can provide security by preparing for unexpected expenses

• Saving can lead to financial dependency

• Saving has no impact on financial freedom

Why should a person have a budget?

• To spend money without tracking

• To lend money to others

• To gamble

• To be able to set financial goals, both short term and long term

What are three examples of good debt?

• Taking out a mortgage, Advancing education, Starting/expanding business

• Credit card debt for luxury items, Payday loans, Borrowing for a vacation

• Loans for gambling, Borrowing to buy depreciating assets, High-interest personal loans

• Unsecured loans for entertainment, Borrowing to pay for daily expenses, Debt from impulse shopping

How does debt differ from credit?

• Debt is the amount of money borrowed, Credit is the financial ability to repay

• Debt is the financial ability to repay, Credit is the amount of money borrowed

• Debt is the amount needed to pay for money borrowed, Credit is the amount of money borrowed by one party from another

• Debt is the amount of money saved, Credit is the amount of money invested

What are some benefits of creating a budget?

• Benefits include the ability to spend without limits

• Benefits include the ability to ignore financial responsibilities

• Benefits include the ability to set financial goals

• Benefits include the ability to borrow unlimited funds

What is a possible risk associated with debt?

• An individual may not be able to repay for the borrowed money, causing a bankruptcy

• An individual may receive too much money

• Debt always leads to financial prosperity

• Debt eliminates the need for a budget

What are the 4 acceptable uses of debt?

• Taking out a mortgage, Advancing education, Starting/expanding a business, Fulfilling dreams

• Paying for daily expenses, Covering for gambling losses, Financing luxury vacations, Buying the latest gadgets

• Borrowing for a wedding, Taking loans for parties, Credit card debt for shopping sprees, Unsecured loans for hobbies

• High-interest personal loans, Payday loans, Borrowing to pay off other debts, Loans for non-essential items

What is the best way in which an individual may build wealth for the future?

• By spending all their income

• By investing in various companies' stocks and bonds

• By taking on a lot of debt

• By avoiding any form of investment