Choices Quiz: Facts and Myths About Budgets

1. True or false: Teens don’t have too many expenses to manage on their own, so learning how to keep a budget is not that important yet.

• A. True
• B. False

2. Having a good handle on _________ , such as by keeping a balanced budget, can help you manage your money and spend it without going into _________. Budgets also help you _________ how you want to spend your money according to what’s most important to you.

• A. organization; finance; prioritize
• B. saving; negative; balance
• C. personal finance; debt; prioritize
• D. priorities; debt; expenses

3. What is the most important thing to remember when budgeting, according to financial counselor Leslie Boden?

• A. Having as much money as possible left over each month for savings
• B. Being able to afford expensive things
• C. Making sure the total of the income column is greater than or equal to the total of the expenses column
• D. All of the above

4. Which of the following can you use to keep track of your money?

• A. Paper
• B. An app
• C. A spreadsheet on your computer
• D. All of the above

5. True or false: Budgets aren’t just for money. You can also create a time budget to make sure you have time for all the things you want to do.

• A. True
• B. False

6. Kimberly Palmer, an expert in personal finance, says that a budget can be as simple as two columns: one that tracks _________ and one that tracks _________.

• A. income; expenses
• B. rent; car payments
• C. income; ice cream
• D. gifts; expenses

7. Kimberly Palmer also says that jazzing up your budget can help keep you motivated. Which of the following options does she recommend if you want to add some flair to your personal budget?

• A. Using an app like Canva to create a presentation with pictures of all the things you want to do with your money
• B. Cut photos out of magazines and make a collage
• C. Print out photos from your phone or use craft supplies
• D. All of the above

8. When you have a clear idea of where your money is going, it’s easy to figure out places to _________ the amount coming in and _________ the amount going out.

• A. increase; decrease
• B. decrease; increase
• C. add; delete
• D. prioritize; overspend

9. If you get into debt as an adult, you can _________.

• A. afford a nice vacation
• B. face serious legal consequences
• C. still afford groceries and gas
• D. All of the above

10. A _________ account can help you work toward a financial goal.

• A. checking
• B. purchase
• C. savings
• D. goal