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Worksheets

Budgets 101

Total questions: 35

Worksheet time: 12mins

Name
Class
Date
1.

Which of the following is an example of a need for most people?

a)

A place to live

b)

Designer Jeans

c)

An expensive car

2.

It's important to spend money on things you need before spending money on things you want.

a)

True

b)

False

3.

What is a good reason to save money?

a)

To have money to buy things

b)

To have money put aside for emergencies

c)

For a future purchase

d)

Any or all of the choices

4.

Money that your earn is called...

a)

expense

b)

debt

c)

income

d)

credit

5.

Money that you spend is called...

a)

expense

b)

income

c)

debt

d)

profit

6.

A plan for spending and saving. You must consider both income and expenses.

a)

hoarding

b)

banking

c)

budget

d)

investing

7.

An expense that does NOT change from month to month.

a)

fixed expense

b)

variable rate

c)

opportunity cost

d)

online bill

8.

Something thought to be an essential item required for life (food, water, etc.)

a)

surplus

b)

need

c)

profit

d)

want

9.

The item you gave up to purchase the item you chose.

a)

expensive

b)

budget

c)

want

d)

opportunity cost

10.

If your income is $20 per month, how much should you spend each month to stay on budget?

a)

exactly $20 dollars

b)

between $20-$30 dollars

c)

$20 dollars or less

d)

nothing

11.

Something unnecessary but desired. An item which increases the quality of life (video games, DVD's, etc.).

a)

surplus

b)

need

c)

want

d)

deficit

12.

Which of these is an example of a bi-annual (every 6 months) or annual (once a year) expense?

a)

gas

b)

phone bill

c)

movie tickets

d)

car insurance

13.

In the 50/30/20 Rule...what does the 50% represent?

a)

Resources

b)

Needs

c)

Bills

d)

Wants

14.

In the 50/30/20 Rule...What does the 20% represent?

a)

bills

b)

wants

c)

savings

d)

insurance

15.

Where should your savings go to protect it?

a)

Wallet

b)

Piggy Bank

c)

Bank Account

d)

Shoe Box

16.

Most people need the benefits of the 50/30/20 Budget Rule...

a)

To learn to spend money without thinking

b)

To learn to avoid debt

c)

To learn to save money for the future

d)

Only save money and spend money

17.

What is the financial definition of wealth (Hint: Assets are things you own/have)?

a)

Assets – Debts = Wealth

b)

Debts – Assets = Wealth

c)

Assets + Debts = Wealth

18.

Your NEEDS and WANTS will basically stay the same throughout your whole life.

a)

True

b)

False

19.

People who are really good at saving find ways to make it…

a)

Optional

b)

Hurt

c)

Difficult

d)

Automatic

20.

Which one of these definitions best describe Opportunity Costs?

a)

The cost of making one decision over another.

b)

The cost for the opportunity to buy anything you want.

c)

The opportunity that will cost you loads of money.

21.

Alex is studying for his math quiz, but his favorite TV show just started. If he studies for the quiz, he will miss out on watching the show. Alex decides not to watch the show and continue studying for the quiz. What is the opportunity cost of his decision?

a)

studying for a quiz

b)

missing the TV show

c)

eating dinner

d)

taking a nap

22.

Which of these is NOT an example of a need?

a)

Water

b)

Food

c)

Cell phone

d)

Shelter

23.

Steve decided to buy the brand new iPhone that just came out instead of putting money aside for a vacation next summer. This is known as saving.

a)

True

b)

False

24.

A _____________ is something you would like to have, but it is not required to live.

a)

need

b)

want

c)

choice

25.

You want to buy a new video game and a new pair of sneakers. You only have enough money to buy one of them. If you buy the video game, what is your trade-off?

a)

The money you spend on the video game

b)

Playing the video game

c)

Not getting the sneakers

26.
Which do people compare in order to make choices?
a)
Costs & Benefits
b)
Supply & Demand
c)
Buying & Selling
d)
Apples & Oranges
27.

Money is "fungible" This means...

a)

money can only be used to pay for wants

b)

money spent on one item can easily be spent on something else

c)

money if flexible and can be folded many different ways

d)

money tastes like onion rings (funyuns)

28.

An opportunity benefit is....

a)

making choices

b)

going to a fundraiser

c)

what you get after paying the cost

d)

not getting what you want

29.

Choose the correct description...you don't feel like going to work today (which means you don't get paid), but you have a really boring day at home.

a)

Low Cost/Low Benefit

b)

Low Cost/High Benefit

c)

High Cost/High Benefit

d)

High Cost/Low Benefit

30.

Choose the correct description... Tony decides to get a pizza for lunch because he had a drink and a hot dog yesterday..

a)

Low Cost/Low Benefit

b)

Low Cost/High Benefit

c)

High Cost/High Benefit

d)

High Cost/Low Benefit

31.

One of the Pillars of Budgeting is having your paycheck automatically deposited and your bills set up to pay online. This Pillar is known as...

a)

Emergency Fund

b)

Tracking Spending

c)

Automation

32.

A Budget method that uses only cash (Cash Budgeting) is also called this because you divide the cash into separate categories for spending.

a)

Debit Card Budget

b)

50/30/20 Rule

c)

Values Budgeting

d)

Envelope Budgeting

33.

When you use Zero Based Budgets, like you are doing in Banzai-Life Scenarios, you essentially give...

a)

"The Most To Savings"

b)

"Every Dollar A Job"

c)

"All Your Money Away"

d)

"All Your Money To Your Wants"

34.

If saving your money to buy the newest electronics and you base your Budget on that expense, you are most likely using this Budget Method...

a)

50/20/30

b)

Zero Based Budget

c)

60% Solution

d)

Values Based Budget

35.

"A living and breathing plan for your money so you do not spend too little or too much" is the definition of what according the Atypical Finance creator Tim Jordan.

a)

Budget

b)

Income

c)

Expense

d)

Work-Life Balance