Personal Budgeting Basics Quiz

What is the main goal of having a personal budget?

• To help people plan their spending and saving decisions.

• To make shopping more fun.

• To spend all your money quickly.

• To avoid earning any income.

Which of the following is NOT included in a personal budget?

• Income

• Expenditures

• Saving

• Playing games

What is the definition of income?

• Money that is earned or received.

• Money that is spent.

• Money that is set aside for emergencies.

• Money used to buy toys.

What does it mean to have a balanced budget?

• Income is equal to or more than the expenditures.

• Spending more than you earn.

• Saving no money at all.

• Only spending on gifts.

Which of the following is a reason to save money?

• Emergencies

• Buying candy every day

• Spending all your money at once

• Ignoring your budget

What is an example of a decision that has both benefits and costs?

• Doing homework or playing a video game

• Sleeping all day

• Watching TV only

• Eating candy for every meal

What are benefits in decision making?

• The positives that come from our decisions

• The money we spend

• The things we lose

• The rules we break

What is an opportunity cost?

• What you give up to get something else

• The money you earn

• The rules you follow

• The food you eat

If you spend your allowance every week, what is your opportunity cost?

• Losing the chance to save money

• Getting more homework

• Eating more candy

• Playing more video games

What does "income" mean in a personal budget?

• Money earned

• Money spent

• Money lost

• Money borrowed