PVS Bundle

What is the primary goal of family budgeting?

• To increase family income

• To plan how to spend family income to meet the needs and wants of all members

• To reduce family expenses to zero

• To borrow money for future needs

Which type of family budget occurs when income is equal to expenses?

• Surplus Budget

• Balanced Budget

• Deficit Budget

• Emergency Budget

What does a surplus budget indicate?

• Expenses are more than income

• Income is equal to expenses

• Family income is more than expenses, leaving money left over

• There is no money left for savings

Which of the following is NOT an importance of family budgeting?

• It ensures needs are met first

• It helps to control spending

• It encourages unnecessary borrowing

• It promotes peace in the home

What is the first step in preparing a family budget?

• Write the budget clearly

• Know the family income

• Group the needs in order of importance

• Follow the budget

Which step in preparing a family budget involves deciding how much money to spend on each item?

• List the family’s needs and wants

• Write the budget clearly

• Decide how much money to spend on each item

• Review and adjust the budget if necessary

What is the purpose of family budgeting as mentioned in the class activity?

• To spend money freely without planning

• To manage and allocate family income effectively

• To increase family expenses

• To avoid saving money

What is the process of making choices from alternative courses of action or things called?

• Budgeting

• Decision making

• Planning

• Organizing

Which of the following is NOT listed as an item to include in a family budget?

• Food

• Rent/Utilities

• Recreation

• Investments

What is one importance of decision making?

• It helps to increase income.

• It helps to minimize mistakes.

• It helps to reduce expenses.

• It helps to avoid budgeting.