Unit 1 Review

What is a budget?

• A list of friends.

• A plan for spending and saving money.

• A type of savings account.

• A game involving money.

Why is it important to track your expenses?

• To know how much money you can spend on toys.

• To make sure you do not spend more money than you have.

• To learn math.

• To impress your friends.

Which of the following is a source of income?

• Money spent on groceries.

• Money saved from last year.

• Money earned from a lemonade stand.

• Money borrowed from a friend.

What does it mean to have a balanced budget?

• Spending more money than you earn.

• Earning more money than you spend.

• Having the same amount of income and expenses.

• Saving all your money and not spending any.

What is a savings goal?

• A new video game you want to buy.

• A plan to spend all your money in one month.

• A target amount of money to save for future needs or wants.

• A competition with friends to spend money.

How can having a budget help you achieve your savings goals?

• By showing you how to spend more money.

• By limiting how much you can spend on entertainment.

• By planning how much money should be saved each month.

• By making you popular.

What might be a consequence of not tracking your expenses?

• You might save too much money.

• You might spend more than you earn and go into debt.

• You will always know how much money you have.

• You will become better at math.

Which of the following is NOT a good practice in personal finance?

• Setting aside money for savings each month.

• Keeping a record of all money spent and earned.

• Spending all your income as soon as you receive it.

• Reviewing and adjusting your budget regularly.