Budgeting Basics: Understanding Money Management

A _ expense stays the same every month, like rent.

• variable

• fixed

• occasional

• discretionary

Saving money to buy something in the future instead of right away is called _.

• immediate satisfaction

• instant gratification

• delayed gratification

• spontaneous spending

A _ is money set aside for unexpected expenses.

• savings account

• emergency fund

• investment portfolio

• checking account

What is the best way to prepare for emergencies?

• A) Spend all your money

• B) Save for a vacation

• C) Create an emergency fund

• D) Buy something new every month

Which of the following is an example of a discretionary expense?

• A) Rent

• B) Groceries

• C) Dining out

• D) Utilities

A _ goal might take a few months to achieve, like saving for a new bike.

• short-term goal

• long-term goal

• immediate goal

• temporary goal

When your expenses are less than your income, you have a budget _.

• deficit

• neutral

• surplus

• excess

What is a budget deficit?

• A) When you save more money than expected

• B) When your expenses are more than your income

• C) When your income equals your expenses

• D) When you have extra money left over

If you want to buy a new skateboard next month, this is an example of a:

• A) Long-term goal

• B) Short-term goal

• C) Budget surplus

• D) Fixed expense

Which is an example of a variable expense?

• A) Car payment

• B) Internet bill

• C) Electric bill

• D) Savings account