Money Skills Quiz

What is a budget?

• A detailed plan for spending money

• A list of favorite items to buy

• A record of past purchases

• A type of savings account

You should always make sure you enough money for things you (a)   ​ before you buy things you ​ (b)  

• Need
• Want

Why is it important to save money?

• To be ready for unexpected expenses

• To spend more on luxury items

• To avoid having to earn money

• To make unnecessary purchases

Which of the following is a benefit of budgeting?

• It increases your expenses

• It helps you organize your spending

• It complicates financial decisions

• It reduces your income

How can tracking your expenses help with budgeting?

• It allows you to forget about limits

• It helps you understand where your money goes

• It increases the complexity of budgeting

• It discourages saving money

What should you do if you consistently spend more than your budget allows?

• Continue spending the same way

• Borrow money to cover extra expenses

• Adjust your budget or reduce expenses

• Ignore the budget

Which strategy is effective for saving money?

• Buying items as soon as you want them

• Waiting for sales and discounts

• Using credit cards for all purchases

• Eating out for every meal