Budgeting Basics Quiz

Why is it important for college students to create a budget?

• To ensure they have enough money for entertainment

• To impress their friends

• To make smart spending choices and prepare for future expenses

• To avoid paying taxes

What is the first step in creating a budget?

• Tracking income and expenses

• Investing in stocks

• Buying a new phone

• Paying off all debts

Which of the following is NOT considered an income source for budgeting?

• Wages from work

• Allowance from family

• Student loans

• Credit card payments

What should you do if your expenses are greater than your income?

• Cut back on expenses and find ways to increase income

• Increase your expenses

• Ignore the difference

• Take a vacation

Why is it important to adjust your budget regularly?

• To make sure you pay more taxes

• To avoid spending money

• To ensure you never spend money on entertainment

• To keep up with changing financial situations