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WorksheetsML FBLA Financial Literacy - Budgeting
Total questions: 20
Worksheet time: 10mins
What is a budget?
A plan for saving money
A plan for managing and spending money
A loan from a bank
A type of insurance
Why is budgeting important?
It helps you track your expenses and save money
It helps you avoid paying taxes
It tells you how much money you can borrow
It helps you decide what to buy in stores
What is an income?
Money you spend each month
Money you receive, usually from a job or allowance
Money you owe to others
Money you save in a bank account
What is an expense?
The money you receive from a job
The money you spend on things like food, clothing, and entertainment
The money you borrow from the bank
The money you save in a savings account
What is the first step in creating a budget?
Deciding what to spend money on
Calculating how much money you earn
Writing down how much money you owe
Setting up a savings account
What is a fixed expense?
An expense that changes from month to month
An expense that stays the same each month
Money you save for emergencies
Money you spend on fun activities
What is a variable expense?
An expense that stays the same each month
An expense that changes from month to month
Money you earn from work
An amount of money you save for retirement
What is the purpose of tracking your expenses?
To make sure you are not spending more than you earn
To buy things on sale
To make sure you are paying off loans quickly
To calculate how much money you owe
What is savings?
Money you spend each month
Money you set aside for future use or emergencies
Money you borrow from a bank
Money you give to others as a gift
What is the 50/30/20 rule in budgeting?
50% for rent, 30% for food, 20% for savings
50% for savings, 30% for rent, 20% for fun
50% for wants, 30% for needs, 20% for savings
50% for taxes, 30% for savings, 20% for entertainment
What is an emergency fund?
Money you borrow for an unexpected event
Money set aside for future emergencies or unplanned expenses
Money you spend on fun activities
Money that is earned from investments
What is a discretionary expense?
Money spent on basic needs like food and housing
Money spent on things you want but don’t need, like entertainment or hobbies
Money spent on bills or loan repayments
Money saved for future goals
What should you do if your expenses exceed your income?
Spend more money on entertainment
Cut back on unnecessary expenses and find ways to increase income
Borrow money from friends
Ignore the problem
What is a cash flow?
The money you owe to others
The amount of money you earn versus the amount of money you spend
The amount of money saved in a bank account
The cost of borrowing money from a bank
What is a bank statement?
A document showing the history of your spending and income from a bank account
A list of loans you owe
A list of investments you own
A document showing your credit score
What is a short-term financial goal?
A goal that will take many years to achieve
A goal to save for something in the near future, like a new phone or a trip
A goal to earn more money from investments
A goal to buy a house
How can you reduce discretionary spending?
By finding cheaper entertainment options or cooking at home instead of eating out
By taking out a loan
By saving only a small amount of money
By investing all your money in the stock market
What is a budget surplus?
Spending more money than you earn
Having more income than expenses, leading to extra savings
Not tracking your spending
A type of investment that earns money
What is a budget deficit?
Having more income than expenses
Spending more money than you earn, leading to debt
A type of savings plan
Tracking your money effectively
What is the purpose of a financial goal?
To help you decide what to spend money on
To give you a reason to save money and plan for the future
To increase your income
To make you spend more money
