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Phase 2 Student Competition Quiz

Total questions: 7

Worksheet time: 5mins

Name
Class
Date
1.

What are the recommended 'Money Bucket Allocations' in a budget?

a)
  • Food (10%)
    Rent (20%)
    Entertainment (20%)

  • Savings (50%)

b)

Luxury (20%)

Needs (40%)

Invest (30%)

Other (10%)

c)

Needs (50%)

Wants (15%)

Save (25%)

Invest (10%)

d)

Savings (30%)
Expenses (30%)
Debts (15%)
Investments (25%)

2.

How can 'Lifestyle Inflation' impact your financial stability?

a)

It has no impact on financial stability

b)

It decreases your spending

c)

It helps you save more money

d)

Your expenses increase as your income grows, delaying your financial goals

3.

What does 'Living Below Your Means' involve?

a)

Spending less than you earn

b)

Spending more than you earn

c)

Borrowing money to cover expenses

d)

Avoiding luxury expenses

4.

How often should you review your budget?

a)

It should stay fixed and not change

b)

Every 2 - 3 years

c)

At least once a year

d)

Every 10 years

5.

Scenario Question (Double Points!)

You’re planning a holiday that costs $1,200. How can you best use the 'Money Bucket System' to save for this goal over the next 12 months?

a)

Use the 'Invest' bucket to fund the holiday

b)

Withdraw the entirety of your savings account for the holiday

c)

Allocate a portion of your 'Wants' and 'Save' budget into a high-interest savings account each month

d)

 Borrow money to cover the cost

6.

Scenario Question (Double Points)

Lucy is a university student and receives $1,000 / month. What would be her monthly budget if Lucy follows the Future Finances recommended 'Money Bucket Allocations'?

a)

Wants (20%): $200

Needs (70%): $700

Save (10%): $100

Invest (10%): $100

b)

Wants (25%): $250

Needs (30%): $300

Save (25%): $250

Invest (20%): $200

c)

Wants (15%): $150

Needs (50%): $500

Save (25%): $250

Invest (10%): $100

d)

Wants (15%): $150

Needs (20%): $200

Save (60%): $600

Invest (5%): $50

7.

Scenario Question (Double Points!)

  1. You have an unexpected medical bill of $150 this month and have not yet saved an emergency fund to cover this cost. How should you adjust your money buckets to cover this expense without falling behind on your savings goals?

a)
  • Take money from your 'Invest' bucket to cover the expense

b)
  • Reduce spending in your 'Wants' bucket to cover this expense OR pay for it with your 'Save' bucket and then repay yourself at a later date from your 'Wants'

c)
  • Delay the payment until a later date (incurring a late fee) and continue with your original budget so you can save more

d)
  • Reduce spending on your 'Needs' bucket