Personal Money Management Unit Review

All budgets must start with ____________.

• Debt

• Expenditures

• Income

• Credit

Which are examples of income? (Choose TWO)

• Earning money from working at a clothing store.

• Buying clothes from the store.

• Giving money to a friend for their birthday.

• Getting money from your grandparents for your birthday.

Ben makes $50 each month, but spends $40 of it. Lindsey makes $65 each month, but spends $60 of it. Both of them are saving for a new I-Pad. Which one will be able to buy the I-Pad first?

• Ben

• Lindsey

How is saving money beneficial? (Choose THREE)

• To build wealth

• to limit expenses

• to monitor financial resources

• to pursue opportunities

• to plan for retirement

Which is a benefit of saving money?

• to qualify for a new credit card

• to have fewer job opportunities

• to be prepared for an emergency

• to have to decline credit card offers

Which of the following are risks associated with debt? (Choose TWO)

• losing your job and not being able to pay back the debt

• paying back a loan too quickly

• being unable to save for emergencies

• borrowing money to take a vacation

• not saving at least 5% of your income

Which is a risk of mishandling credit (i.e., having too much debt)?

• paying more sales tax

• receiving higher credit scores

• paying higher interest rates

• receiving more credit card offers

How can you benefit from making a personal budget?

• It can decrease your savings

• It can increase your spending

• It can help you make more money

• It can help you use money more wisely

A business that stores the money of people and businesses and makes loans to customers

• loan

• bank

• debit

• credit

an amount that is borrowed from a bank or credit union

• loan

• bank

• debit

• credit