Understanding Finance and Budgeting Terms

What is a budget?

• A plan for spending and saving money

• A type of bank account

• A list of all your favourite things

• A type of currency

Which of the following is an example of an expense?

• Receiving a birthday gift

• Buying a new book

• Winning a prize

• Finding money on the street

What does the term "savings" mean?

• Money spent on entertainment

• Money set aside for future use

• Money borrowed from a friend

• Money used to pay bills

What is the purpose of a financial goal?

• To make a list of things you want to buy

• To plan how to spend all your money quickly

• To help you save and manage your money wisely

• To avoid paying taxes

Which of the following is a fixed expense?

• Buying a new video game

• Monthly rent for your home

• Going to the cinema

• Buying a snack

What does "income" refer to?

• The amount of money you owe

• The amount of money you earn

• The amount of money you spend

• The amount of money you save

What is a "debt"?

• Money you have saved

• Money you owe to someone else

• Money you have earned

• Money you have spent on groceries

Which of the following is a variable expense?

• Your monthly gym membership fee

• Your weekly grocery shopping

• Your annual car insurance

• Your monthly mortgage payment

What does "interest" mean in finance?

• The excitement of buying new things

• The extra money paid for borrowing money

• The amount of money you save each month

• The total amount of your expenses

What is a "loan"?

• A gift of money from a friend

• Money borrowed that must be paid back

• Money given to you by your parents

• Money you find on the street