Y8/IAM/U6L3 - Making Big Purchases

What is a budget?

• A plan for spending money

• A type of bank account

• A shopping list

• A way to earn money

Which of these is a good reason to make a budget?

• To avoid spending too much

• To buy everything you want

• To borrow more money

• To ignore prices

True or False: It’s always a good idea to borrow money for big purchases.

• True

• False

Which is NOT an option when making a big purchase?

• Saving up

• Borrowing money

• Ignoring the cost

• Waiting for a sale

Why is it important to be smart with your money from a young age?

What is a 'big purchase'?

• Buying something expensive

• Buying something cheap

• Borrowing money

• Getting a job

Which of these is a smart way to prepare for a big purchase?

• Save up over time

• Borrow from a friend without asking

• Buy it immediately

• Ignore your budget

True or False: Budgeting can help you avoid debt.

• True

• False

What could happen if you don't budget your money?

• You might run out of money

• You will always have money

• You will get free things

• You will never have to make choices

Which is an example of a financial dilemma?

• Deciding whether to save or spend

• Watching TV

• Going to school

• Eating lunch