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Budgeting

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Which two things does a budget compare?

a)

Savings and interest

b)

Income and expenses

c)

Income and investments

2.

Which of the following is a true statement about budgets?

a)

They encourage people to spend as much money as possible.

b)

Setting up a budget will allow you to earn more money

c)

They allow people to track how and where their money is spent

3.

In what way is a kid's budget similar to an adult's budget?

a)

The goal for both is to have less money going out than coming in.

b)

Both have about the same ratio of income and expenses.

c)

People can save money with both by earning less than you spend

4.

If your income is $20.00 per month, how much should you spend each month to stay on budget? Choose the best answer.

a)

Exactly $20 dollars

b)

Between $10 and $30 dollars

c)

$20 or less

5.

The key to keeping a budget is to spend your money prudently. What is the best synonym for "prudently"?

a)

stingily

b)

wisely

c)

extravagantly

6.

Which of the following is an example of a fixed expense?

a)

shoes

b)

book of the month club

c)

cough medicine

7.

If you were in charge of buying milk for a family of five, but not everyone has breakfast at home everyday, what kind of expense would you classify the milk?

a)

Fixed essential

b)

Variable essential

c)

Non-essential

8.

What can you infer from Tim's practice of saving receipts?

a)

Knowing how much you spend helps you keep an accurate budget

b)

The more receipts you collect, the more money you're likely to save

c)

You can't know how much you spend unless you save receipts

9.

What is one consequence of going into bankruptcy?

a)

Losing the ability to make a budget

b)

Losing your job

c)

Having to some of your possessions taken away

10.

People in debt are often said to have a budget deficit. What does that mean?

a)

They never set up a budget, which directly led to their debt

b)

Their expenditures exceeded their income

c)

They had no income