What Is a Budget?

According to the passage, what is a budget?

• A plan for how to use your money

• A list of things you want to buy

• A way to earn more money

• A type of bank account

Based on the passage, what does a good budget do?

• Balances the money you earn and the money you spend

• Helps you spend more than you earn

• Makes you owe more money

• Only tracks your savings

Budgeting can help me by:

• Tracking expenses and saving money

• Spending more than I earn

• Ignoring financial goals

• Avoiding planning for the future

Why is it important to budget your time as a third grader?

• So you have enough time for school work and other important activities.

• Because it will make you the fastest runner in your class.

• So you never have to do your homework again.

• Because it will let you skip school whenever you want.

When we budget or buy things what do we need to know?

• How much you will get paid next week.

• How much money you have

• Weekend plans

Money that you put away or in a bank for the future.

• Expense

• Savings

• Income

It is important to set aside money in case of …...

• a decrease in expenses

• income increases

• routine expenses

• unexpected expenses

John wants to save $5,000 for a vacation. If he saves $200 each month, how many months will it take him to reach his goal?

• 20 months

• 25 months

• 30 months

• 35 months

What is the primary purpose of creating a budget?

• To increase your expenses

• To ensure you spend all your money

• To plan and control your financial resources

• To avoid saving money

Which of the following is a benefit of budgeting?

• It provides a clear picture of your financial situation

• It encourages impulsive buying

• It allows you to spend without limits

• It helps you ignore your financial goals