Financial Literacy Quiz

What is the purpose of a budget?

• To help manage money effectively and reach financial goals.

• To spend money without any plan.

• To avoid saving money.

• To increase debt.

Your hourly wage or salary is a form of income.

• True

• False

Essential expenses are

• Items you can’t live without

• Items you want to buy

• Luxury items

• Entertainment expenses

Food is an essential expense.

• True

• False

• Sometimes

• Only if it's healthy food

Non-essential expenses could be categorized as wants.

• True

• False

• Essential

• Necessary

Budgets are only for people who make a certain amount of money.

• False

• True

• Sometimes

• Only for high-income earners

Budgeting is important because...

• All of the above

• It helps in managing money

• It helps in reaching financial goals

• It helps in tracking expenses