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Basics of Budgeting and Financial Planning

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

What is a budget?

a)

List of wishes

b)

Plan for saving and spending money

c)

Type of bank account

d)

Shopping list

2.

Why is it important to save money?

a)

To impress friends

b)

To avoid going to school

c)

To prepare for unexpected expenses

d)

To buy candy every day

3.

What should you include in a budget?

a)

Only fun expenses

b)

Income and expenses

c)

Just savings

d)

Only bills

4.

What is an example of an expense?

a)

Birthday gift money

b)

Weekly allowance

c)

Buying groceries

d)

Finding money on the street

5.

What is a paycheck?

a)

A list of chores

b)

Money you earn from working

c)

A type of savings account

d)

A game you play

6.

If you earn $10 for a chore and you save $2, how much do you have left to spend?

a)

$10

b)

$8

c)

$12

d)

$2

7.

What is the best reason to make a shopping list?

a)

To remember what to buy

b)

To spend extra money

c)

To fill your chart with everything

d)

To write down your dreams

8.

What does it mean to "save it for a rainy day?"

a)

To buy an umbrella

b)

To keep money for future emergencies

c)

To spend all your money

d)

To enjoy a rainy picnic

9.

What should you do if you want to buy something expensive?

a)

Borrow from a friend

b)

Save money over time

c)

Ask your teacher for money

d)

Forget about it

10.

What is a wage?

a)

A bill for services

b)

A type of credit card

c)

Money you earn from working

d)

Money you pay for food

11.

What is the difference between needs and wants?

a)

Needs are necessary; wants are optional

b)

Wants are necessary; needs are optional

c)

Both are the same

d)

Needs cost more than wants

12.

Why should you track your spending?

a)

To impress your friends

b)

To understand where your money goes

c)

To confuse yourself

d)

To waste time

13.

What is an allowance?

a)

Money given by parents for chores

b)

A type of bank account

c)

Free money from strangers

d)

Money you pick up from the ground

14.

How can you earn more money?

a)

By dreaming big

b)

By working extra jobs or chores

c)

By spending less

d)

By asking for gifts

15.

What is the purpose of a savings account?

a)

To buy video games

b)

To store toys

c)

To hide money from family

d)

To keep money safe and earn interest

16.

What should you consider before making a big purchase?

a)

If it's on sale

b)

If you really need it

c)

If your friends have it

d)

If it's your favorite color

17.

What is the first step in creating a budget?

a)

Spend money

b)

Calculate income

c)

Borrow money

d)

Find a new bank

18.

What is a financial goal?

a)

A wish to travel

b)

A plan for saving money for something specific

c)

A type of piggy bank

d)

A game you play with friends

19.

Why is it important to spend less than you earn?

a)

To buy more clothes

b)

To save for emergencies and future needs

c)

To impress others

d)

To look rich

20.

What is the benefit of comparing prices before buying?

a)

To spend more money

b)

To find the best deal and save money

c)

To show off to friends

d)

To confuse yourself