Which of the following is a need?

• New smartphone

• Basic food supplies

• Designer clothes

• Luxury vacation

What distinguishes a want from a need?

• Wants are always expensive.

• Needs are essential for survival.

• Wants cannot be lived without.

• Needs can change over time.

Which of these is an example of a want?

• Rent payment

• Healthcare

• Internet subscription

• Water

Why is it important to differentiate between needs and wants?

• To save money for luxuries

• To prioritize spending and budgeting

• To impress others

• To minimize savings

A family decides to skip a vacation to save money for groceries. This illustrates:

• Ignoring wants

• Prioritizing needs

• Budgeting incorrectly

• Choosing a luxury

What is personal income?

• Money spent on necessities

• Total earnings before taxes

• Total savings over a lifetime

• The amount spent on credit

Expenditure refers to:

• Money saved in the bank

• Money received from investments

• Money spent on goods and services

• Money borrowed from a friend

A balanced budget means:

• Income equals expenditure

• Savings are maximized

• All needs are met

• Only wants are funded

Which of the following would be considered a fixed expenditure?

• Dining out

• Mortgage payment

• Entertainment subscriptions

• Clothing purchases

What is a primary source of personal income for most individuals?

• Gifts from family

• Employment salary

• Selling unwanted items

• Interest from savings