Balancing a Budget: Strategies for Financial Literacy

What grade level is the budget concept aimed at in this lesson?

• Fourth Grade

• Seventh Grade

• Fifth Grade

• Sixth Grade

What are the two main components needed to balance a budget?

• Income and Debt

• Debt and Credit

• Expenses and Savings

• Income and Expenses

What is the total income Spencer has for April?

• $90

• $60

• $80

• $70

What causes a budget to be imbalanced towards the expense side?

• Lower income than expenses

• No expenses

• Equal income and expenses

• Higher income than expenses

What is the total of Spencer's expenses before any adjustments?

• $70

• $80

• $85

• $75

What is a good practice when creating a budget?

• Mixing income and expenses in one category

• Listing all expenses only

• Separating income and expenses

• Ignoring small expenses

Why is it problematic to have expenses greater than income?

• It increases financial stability

• It is easier to track

• It may require using credit cards to cover the deficit

• It leads to savings

Which option would further imbalance Spencer's budget by increasing expenses?

• Decreasing entertainment expenses

• Increasing savings

• Reducing piano lessons cost

• Increasing allowance

What would be the effect of increasing Spencer's allowance by $5?

• Increase the imbalance

• Balance the budget

• Decrease the imbalance slightly

• No change to the budget balance

Which action corrects the imbalance in Spencer's budget?

• Decreasing piano lessons by $5

• Increasing allowance by $5

• Increasing savings by $10

• Decreasing entertainment by $10