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Budgeting !

Total questions: 13

Worksheet time: 22mins

Name
Class
Date
1.

What is a budget?

a)

A list of all the things you want to buy

b)

A plan for how to use your money

c)

The total amount of money you earn

d)

Another word for your savings account

2.

  1. In SMART goals, the 'A' stands for (a)   .

3.

Saving for a down payment on a car in two years is a...

a)

Short-term goal

b)

Mid-term goal

c)

Long-term goal

d)

SMART goal

4.

Which of these is a common challenge to sticking to a budget?

a)

Overestimating income

b)

Emotional spending

c)

Saving too much money

d)

Having no envelopes

5.

The story about Warren Buffett teaches us that:

a)

You need to be rich to start budgeting

b)

Starting to save and invest early is powerful

c)

Stocks are the only way to build wealth

d)

Budgeting is only for kids

6.

What is an emergency fund and why is it necessary?

4 lines
7.

  1. Saving for retirement is an example of a (a)   -term financial goal.

8.

  1. A cost like rent or a car payment that stays the same each month is called a (a)   expense.

9.

  1. An (a)   fund acts as a safety net for unexpected expenses.

10.

What does the "S" in SMART goals stand for?

a)

Savings

b)

Specific

c)

Spending

d)

Secure

11.

What is the purpose of tracking your actual spending?

a)

To feel bad about your purchases

b)

To see if you are sticking to your plan

c)

To eliminate all fun expenses

d)

To apply for a credit card

12-16.

Maya's Money Mistake

Maya was happy. She had just earned ₹500 for helping her aunt. It was more money than she usually had.

On her way home, she saw her friends getting street food. "Come join us!" they said. Maya didn't think twice. She spent ₹150 on pani puri and juices for everyone. It was a fun time.

Later that day, she saw that a new movie was coming out. All her friends were going. The ticket cost ₹200. She booked it right away.

The next day, her mom asked, "Did you remember to save money for your new school project kit? It costs ₹300."

Maya's heart sank. She checked her money. After buying the snacks and the movie ticket, she only had ₹150 left. She needed ₹300 for the kit. She didn't have enough!

She felt awful. She had spent her money too fast and now she couldn't buy what she really needed.

12.

What did Maya forget to save money for?

a)

More snacks

b)

A school project kit

c)


A movie ticket

d)

A gift for her mom

13.

If Maya had first set aside ₹300 for her project kit, how much would she have had left for fun?

a)

₹100

b)

₹150

c)

₹200

d)

₹250

14.

Imagine you are Maya. Which of these would be the best financial decision?

a)

Spend money first on snacks and movies, then see what’s left.

b)

Save money for the project kit first, then spend the rest on fun.

c)

Borrow money from friends if you run out.

d)

Not spend any money at all.

15.

What is the biggest lesson from Maya’s experience?

a)

Friends are more important than studies.

b)

Spending on fun is always a bad idea.

c)

Planning and prioritizing money is important.

d)

Never buy street food.

16.

What would you do if you didn’t have enough money for something important—like Maya’s project kit?

4 lines
17-21.

Ananya and her two friends decided to run a stall at their school’s annual fair. Each contributed ₹500, so they began with ₹1500. They planned carefully: bread and vegetables would cost ₹600, lemons and sugar ₹300, paper cups and plates ₹200, and decorations ₹200.

They wanted to avoid overspending, so they agreed to follow a rule: half of their money would go toward important needs for the stall, about one-third for extra items like decorations or snacks, and the rest would be saved for later. Ananya also reminded them about SMART goals. She said, “Let’s save ₹500 from our profits for the class trip next month.”

During the fair, rain damaged some of their cups, forcing them to spend another ₹150. Later, one friend bought ice creams worth ₹100 without planning. Even so, their total sales reached ₹3200. Now they had to decide how to divide their earnings between fun, savings, and future safety nets.

17.

When the team followed the “half for needs, one-third for extras, rest for savings” rule, which budgeting method does this resemble most closely?

a)

Dividing money by fixed and variable costs

b)

Envelope system

c)

50/30/20 Rule

d)

Income minus expenses

18.

Ananya’s goal to “save ₹500 for the class trip next month” matches which two parts of SMART goals best?

a)

Achievable and Realistic

b)

Specific and Time-bound

c)

Measurable and Realistic

d)

Specific and Achievable

19.

If the group wanted to avoid being hurt by unexpected events like rain in the future, which strategy would help the most?

a)

Creating a larger decoration budget

b)

Starting an emergency fund

c)

Borrowing money from classmates

d)

Using the 50/30/20 rule

20.

One friend’s decision to spend ₹100 on ice cream without discussing it with the group is best explained as:

a)

Emergency spending

b)

Emotional spending

c)

Smart reinvestment

d)

A fixed expense

21.

If Ananya’s trip-saving goal was “too high to reach” given their real expenses, which part of SMART goals would she be failing at?

a)

Time-bound

b)

Achievable

c)

Specific

d)

Measurable