Budgeting Quiz

What is budgeting?

• The process of creating a plan to manage income and expenses over a specific period

• The process of spending money without a plan

• The process of saving all income without spending

• The process of borrowing money for expenses

What is the first responsibility in budgeting?

• Expense Categorization

• Income Tracking

• Setting Priorities

• Monitoring and Adjusting

Which of the following is a short-term savings goal?

• Buying a house

• Emergency fund

• Retirement plan

• Starting a business

What is the purpose of creating a savings plan?

• To spend more money

• To develop a systematic approach to savings

• To avoid paying taxes

• To increase debt

What is an example of an interest-bearing account?

• Checking account

• Savings account

• Credit card account

• Cash account

Why is discipline important in saving?

• To spend more money

• To consistently contribute to savings

• To avoid saving

• To increase expenses

Which of the following is considered an essential need?

• A new smartphone

• Food

• Designer clothes

• A sports car

How can you avoid impulse purchases?

• By sticking to the budget

• By buying everything on sale

• By shopping every day

• By ignoring your budget

Which of the following is a non-essential want?

• Shelter

• Education

• Luxury items

• Food

Why is it important to distinguish between needs and wants?

• To spend more money

• To ensure you buy everything you want

• To make informed spending decisions

• To ignore budget constraints