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TOPIC 3: Budgetting

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

______: A plan for managing money

a)

Fund

b)

Goods and Services

c)

Budget

d)

Pension

2.

To create a budget, we use ______

a)

Income + Expense

b)

Expense - Income

c)

Income - Expense

d)

Income = Expense

3.

One is said to have a 'surplus' balance when _____

a)

Income > Expense

b)

Income = Expense

c)

Income < Expense

4.

One is said to have a 'deficit' balance when _____

a)

Income > Expense

b)

Income = Expense

c)

Income < Expense

5.

One is said to has a 'break-even' balance or '0' leftover when

_____

a)

Income > Expense

b)

Income = Expense

c)

Income < Expense

6.

All of the following are tips to smart spending EXCEPT

_____

a)

Prioritize spending for needs before wants

b)

One should allocate some part of his income for savings and for emergency fund

c)

Invest some of your money

d)

Spend for wants and if have left-over, spend it for your needs

7.

In creating a budget, which of the following expenses should you give

PRIORITY to?

a)

Variable Expense

b)

Fixed Expense

c)

Discretionary Expense

d)

Essential Expense

8.

An example of FIXED EXPENSE (doesn't change) is ___

a)

Rent

b)

Petrol

c)

Groceries

d)

Cloth

9.

What is a record of income and spending

and a plan for managing money

a)

Bank Statement

b)

Budget

c)

Bank Account

d)

Interest Rate

10.

Expenses that do not change from month to month, such as

mortgage or rent

a)

Fixed Expense

b)

Variable Expense

11.

Expenses that vary from month to month, such as

entertainment, car repairs or electricity bills

a)

Fixed Expense

b)

Variable Expense

12.

The money going out of your budget to pay for bills, food and other purchases

a)

Expenses

b)

Utilities

c)

Allocated Fund

d)

Monthly Income

13.

Things like gas bills, water bills, electricity bills are refer to as ___

a)

Utilities

b)

Expense

c)

Allocated fund

d)

Income

14.

A budget comprises of two categories ___

a)

Income and Salary

b)

Expenditure and Net Profit

c)

Salary and Spending

d)

Income and Expenditure

15.

Which of the following is not a potential benefit of budgeting?

a)

Reaching long-term goals

b)

Avoiding overspending and debt

c)

Building an emergency fund

d)

Increasing Income

16.

When putting together a budget, which of the following

should you include?

a)

Fixed Expense

b)

Savings

c)

Discretionary

(optional)

Expense

d)

All of the above

17.

It is important to include 'savings' when doing your budget

a)

True

b)

False

18.

The best way to start the budgeting process is

a)

Start tracking all the money you spend for a period of time

b)

Pay off all your loans

c)

Automatically deposit money into your savings account with each paycheck

d)

Stop all activities like dining out and entertainment

19.

Buying something spontaneously without much thought or planning is called ___

e.g. due to pressure of advertising or

perhaps you see the display chocolates during checkout

a)

Impulse Buying

b)

Peer Pressure

20.

When someone feels compelled to buy something because his friends,

families or social group are buying it is called ___

Normally, this is driven by a desire to fit in.

a)

Impulse Buying

b)

Peer Pressure