Financial Health and Budgeting Test

Imagine you're planning a party with your friends Kai, Jackson, and Aiden. What is a budget in this scenario?

• A list of things you want to buy for the party

• A plan for how you will spend and save your money for the party

• A type of bank account for party funds

• A credit card statement for party expenses

Ava is planning her monthly budget. Which of the following expenses should she categorize as a fixed expense?

• Groceries

• Monthly rent payment

• Entertainment costs

• Clothing purchases

Abigail and Henry are discussing their finances. Abigail asks, "What do you call the money you earn from working or investments?" Can you help them out?

• Expenses

• Debt

• Income

• Savings

Imagine you're on a financial adventure with Ethan, Aria, and Jackson! How often should you check your treasure map (a.k.a. your budget) to ensure you're on the right path?

• Once a year

• Monthly

• Never

• Only when you get a raise

Imagine you're on a deserted island with Emma, Grace, and Jackson. What would be the difference between a want and a need in this scenario?

• Wants are things required for survival, needs are optional

• They are the same thing

• Needs are essential for survival, wants are optional

• Needs are more expensive than wants

Hannah has $100 and decides to save 20% for a fun day out. How much money does she have left to spend on her favorite treats?

• 50

• 80

• 20

• 60

Imagine you're planning a surprise party for your friend Scarlett. What would you call the stash of money you keep aside just in case the DJ doesn't show up or the cake gets ruined?

• Money set aside for entertainment

• Money saved for future purchases

• Money saved for unexpected expenses

• Money used for daily expenses

David just received his paycheck and is thinking about his budgeting habits. Which of these is NOT a good budgeting habit?

• Tracking your expenses

• Setting financial goals

• Spending money as soon as you get it

• Saving regularly

Imagine you're giving financial advice to your friend Michael. What percentage of his income should he aim to save to ensure a secure future?

• 5%

• 10-20%

• 50%

• 0%

Ava borrowed some money to buy her favorite book. What is the term used for the fee she pays for borrowing this money?

• The total amount of money you owe

• The fee paid for borrowing money

• Your monthly income

• Your weekly allowance