Budgeting Basics

Which of the following is an example of a "need" rather than a "want"?

• A new video game

• A winter coat

• Tickets to a concert

• A smartphone upgrade

Tags

DOK Level 2: Skill/Concept

Why is it important to differentiate between needs and wants when budgeting?

• To ensure you can buy everything you want

• To prioritize spending on essentials

• To make sure you have fun

• To avoid saving money

Tags

DOK Level 2: Skill/Concept

What does it mean to make an "informed spending decision"?

• Buying something as soon as you want it

• Researching before purchasing to ensure it's a wise use of money

• Choosing the cheapest option available

• Asking a friend what to buy

Tags

DOK Level 2: Skill/Concept

If you have $100 dollars and you save $25, what fraction of your money have you spent?

Tags

DOK Level 2: Skill/Concept

Which scenario best illustrates the concept of savings?

• Spending all your allowance on toys

• Putting some of your birthday money into a savings account

• Borrowing money to buy a video game

• Buying snacks every day after school

Tags

DOK Level 2: Skill/Concept

What is a good strategy to use when trying to decide if something is a need or a want?

• Ask if it is something essential for your health or safety

• Decide based on how expensive it is

• Buy it if it is on sale

• Get it if your friends have it

Tags

DOK Level 2: Skill/Concept

How does saving money help you in the future?

• It allows you to buy everything you want later

• It prepares you for unexpected expenses

• It makes everything cheaper

• It stops you from enjoying the present

Tags

DOK Level 2: Skill/Concept

Which option represents a responsible spending decision?

• Buying a new toy every week

• Saving some money from your weekly allowance

• Spending all your money on a big party

• Buying expensive clothes to impress friends

Tags

DOK Level 2: Skill/Concept

What is the benefit of comparing prices before making a purchase?

• To spend more money

• To find the best deal and save money

• To make shopping more complicated

• To impress friends with expensive purchases

Why is it wise to set aside a portion of your income for emergencies?

• To have funds for unexpected events

• To spend it on luxuries

• To lend money to friends

• To ignore financial planning