Budgeting Basics Quiz

Why is budgeting important?

• It helps you manage your money.

• It makes you spend more than you earn.

• It prevents you from saving.

• It complicates financial planning.

Which of the following is NOT a purpose of a budget?

• Deciding what to spend on daily things.

• Planning how much to save for future goals.

• Choosing what to watch on TV.

• Figuring out how to pay off any debts.

Why is it important to keep track of your spending?

• To ensure you don’t overspend

• To impress your friends

• To avoid paying taxes

• To save time

If you earn $10 and spend $5 on snacks, what should you do?

• Ignore it

• Write it down

• Spend more

• Save it all

What is considered a "credit" in a budget?

• Money that decreases your available funds

• Money that adds to your available funds

• Money that is spent on expenses

• Money that is borrowed from a bank

If you receive $50 for your allowance, what happens to your budget balance?

• It decreases by $50

• It remains the same

• It increases by $50

• It decreases by $100

What can the money received as credit be used for?

• Only for paying debts

• Only for saving

• For spending (debits) or saving (saving goals)

• Only for buying gifts

Which of the following is an example of credit?

• Paying a bill

• Receiving a weekly allowance

• Buying groceries

• Taking a loan

What is a rebate or refund considered in a budget?

• Debt

• Credit

• Expense

• Loan

What happens when you transfer money from a savings account into your budget?

• It is considered a debt

• It is considered an expense

• It is considered a credit

• It is considered a loan