WorksheetsMajor Expenditures Test
Total questions: 20
Worksheet time: 20mins
Which statement best describes a spending plan?
A list of wants you hope to buy someday
A financial statement used to assist with money management by tracking income and expenses
A contract with an insurance company
A plan for paying only taxes
What are the two main components of a spending plan?
Income and savings
Income and expenses
Needs and wants
Taxes and insurance
A need in personal finance decisions is best defined as:
A necessity required for basic living and well-being.
A luxury item that enhances comfort.
An optional expense for entertainment.
A financial investment for future growth.
Which of the following best explains why taxes are not included as a major expenditure in a spending plan?
Taxes are optional and can be adjusted each month
Taxes are a required, non‑adjustable expense taken from income before net income is calculated
Taxes are part of entertainment spending
Taxes only apply to businesses
Which public goods and services are typically paid for by taxes? Choose the best example.
Private gyms
Police, fire, emergency services, schools, and roads
Movie theaters
Grocery stores
Which list shows only major expenditure categories?
Housing, Transportation, Food, Savings, Insurance, Other
Housing, Entertainment, Travel, Gifts
Taxes, Charitable Giving, Vacations
Investments, Donations, Hobbies
Insurance helps individuals manage financial risk by:
providing financial protection against unexpected losses
increasing the likelihood of financial loss
eliminating all types of risks completely
guaranteeing profits in every situation
Savings should be considered an automatic expense in a spending plan because:
It ensures that money is set aside regularly before spending on other things.
It allows you to spend more freely on non-essential items.
It makes it easier to borrow money when needed.
It reduces the need to track your expenses.
Which additional considerations are suggested when choosing a home?
Brand of appliances and wall colors
Condition and required maintenance, size, and location
Neighborhood mascot and sports teams
Proximity to movie theaters only
Which statement best defines a spending plan?
A list of things you want to buy someday
A record of past purchases only
A plan for how to use income to pay expenses and save
A legal document required by banks
Anika has a limited amount of cash and wants to buy several things at the store. Which concept is most directly explored when she decides what to buy first?
Brand loyalty
Values and priorities
Online shopping skills
Tax filing rules
What is the main difference between needs and wants?
Needs are always cheaper than wants
Needs are essential for living; wants enhance comfort or enjoyment
Wants are required by law; needs are optional
Wants never cost money
Which transportation method is often the most cost-effective when available?
Driving a personal car
Public transportation
Rideshare services
Buying a new car each year
When purchasing an automobile, which costs should be considered?
Only the sticker price
Immediate and ongoing expenses like registration, insurance, fuel, and maintenance
Only fuel costs
Only optional upgrades
Why is automobile insurance listed as a required expense?
It is required by law
It increases fuel efficiency
It extends the car's warranty
It reduces the vehicle's purchase price
Which list includes only ongoing automobile expenses?
Fuel, maintenance
License and registration, purchase price
Monthly payment, sales tax
Down payment, optional upgrades
A person should consider how a vehicle will typically be used when deciding what automobile to purchase because:
It ensures the vehicle meets their specific needs and lifestyle.
It guarantees the vehicle will never need repairs.
It makes the vehicle more expensive.
It allows the person to avoid all insurance costs.
Which expense appears in the Automobile Expenses table but is not legally required by itself?
Insurance
License and registration
Fuel
Insurance and registration
Samuel wants to manage his money better. What is the primary purpose of creating a spending plan in his personal finance?
To track only entertainment costs
To organize income and expenses to meet needs, wants, and savings goals
To avoid using public transportation
To increase credit card limits
Rohan is budgeting for his new car. Which pair correctly matches a transportation cost with its timing?
Maintenance — immediate; Registration — ongoing
Fuel — ongoing; Insurance — ongoing
License and registration — ongoing; Fuel — immediate
Purchase price — ongoing; Maintenance — immediate
