WorksheetsBudgeting and Financial Literacy Quiz
Total questions: 18
Worksheet time: 9mins
In the 50-30-20 budgeting rule, what percentage is generally allocated to savings and investments?
30%
50%
20%
10%
Zero-based budgeting means:
Starting budget from scratch every year and assigning every rupee a job
Spending all money before month end
Keeping zero balance in bank
Using only cash for expenses
Which of the following is a tool for tracking expenses?
UPI App
Ledger notebook
Google Sheets
All of the above
CIBIL score in India typically ranges between:
300–900
100–500
0–10
500–1500
Which of the following is an example of Good Debt?
Credit card bill for a vacation
Education loan for higher studies
Loan for buying luxury watch
Payday loan for parties
What is the major risk of “Buy Now, Pay Later” (BNPL) schemes?
Higher interest after free period
Encourages impulse buying
Can hurt credit score if not paid
All of the above
Which of the following is a bad money habit?
Saving before spending
Tracking expenses weekly
Paying only minimum amount on credit cards every month
Building an emergency fund
In peer pressure spending, the best first step is to:
Avoid friends completely
Politely say no and suggest cheaper alternatives
Lie about being broke
Use a loan to keep up
If your monthly income is ₹50,000 and you follow the 50-30-20 rule, how much should ideally go to needs?
₹15,000
₹20,000
₹25,000
₹30,000
An example of lifestyle inflation is:
Increasing your investments after a salary hike
Buying a more expensive car after getting a raise without increasing savings
Keeping expenses the same after a raise
Paying off debts faster after a raise
Impulse buying is best described as:
Carefully planning purchases
Buying items on sudden desire without need
Waiting for discounts before purchase
Making a monthly grocery list
One difference between India and the US in credit card usage is:
US has longer interest-free periods
India has no credit cards
Indian cards cannot earn rewards
US cards charge less interest
Which expense category fits best for “Going on a trip with friends” under the 50-30-20 rule?
Needs
Wants
Savings
Emergency Fund
One way to politely refuse expensive plans with friends is to say:
“No, I’m broke!”
“Let’s do something more budget-friendly this time.”
“You guys are wasting money!”
“I’ll think about it” (and avoid them)
If you delay payment on a BNPL purchase beyond the due date, what could happen?
Interest charges apply
Late fees added
CIBIL score drops
All of the above
What is a common consequence of overspending on credit cards?
Higher interest rates
Improved credit score
More rewards points
Increased credit limit
Which of the following is a sign of financial stability?
Frequent impulse purchases
Living paycheck to paycheck
Having a fully funded emergency fund
Maxing out credit cards
What is the primary purpose of an emergency fund?
To pay off debts
To cover unexpected expenses
To invest in stocks
To fund vacations
