WorksheetsBudgeting and Financial Planning Review
Total questions: 37
Worksheet time: 19mins
Abigail wants to buy a car in five years and is creating a long-term financial plan. Which of the following best explains why budgeting is important for her goal?
To help you spend more on wants
To track every dollar spent without considering savings
To ensure your expenses stay below your income while planning for future goals
To avoid paying taxes
You set a monthly budget of $200 for dining out. So far, you've spent $45.67, $23.19, $38.50, and $26.83. How much of your budget remains?
$65.81
$75.00
$66.00
$80.00
Scenario: Taylor earns $2,800 per month after taxes. Her rent is $1,000, utilities are $250, groceries average $300, and transportation is $200. She wants to save $400 per month. How much income is left after fixed and necessary expenses, and can she meet her savings goal?
$1,050; Yes
$1,200; No
$1,300; Yes
$1,050; No
Scenario: Jordan earns $2,400 monthly after taxes. His fixed expenses total $1,500, and variable expenses average $600. He wants to save $400 monthly. What adjustment must he make to meet his savings goal?
Increase his fixed expenses
Reduce variable expenses by at least $200
Spend more on entertainment
Use a credit card to cover savings
Lily is planning her monthly budget. Her expenses include: Rent: $800/month Utilities: $115/month Groceries: $75/week Streaming service: $15/month What is Lily's total monthly expense?
$1,010
$1,205
$1,220
$1,315
Aiden earns $800 per month. He spends: $300 on rent, $100 on groceries, $40 on phone bill, $60 on transportation. How much money does Aiden have left to save or spend on other items?
$400
$300
$250
$200
Sophia wants to save $600 in 6 months for a new bicycle. How much should she save each month?
$75
$100
$90
$120
Abigail wants to save $1,000 in a year for a new laptop. How much must she save monthly?
$85.33
$90.00
$83.33
$95
Jason is applying for a new job in tech support, where he must be reachable 24/7. He needs a more reliable phone with advanced capabilities than he currently has. In this context, would purchasing a new iPhone be a need or a want?
Need
Want
Anika is creating a monthly budget and wants to make sure she manages her money wisely. Choose the most accurate explanation for why it is important for Anika to distinguish between needs and wants in her budgeting:
So you can buy more expensive items
To avoid running out of credit
To prioritize essentials and avoid overspending
To ensure all income is used monthly
Abigail is creating her financial plan. She starts labeling her wants, like dining out and buying new gadgets, as needs. Which of the following best explains the consequence of this approach?
You’ll always have money for emergencies
You may overspend and fail to meet essential goals
Your credit score will automatically increase
Your income will grow to match your spending
Sophia is planning her monthly budget. She often confuses her needs, like rent and groceries, with her wants, such as dining out and buying new clothes. Which of the following best describes the consequence of this confusion in her financial planning?
Saving money on unnecessary items
Prioritizing essential costs
Overspending and under-saving
Always having enough leftover money
Abigail checks her bank account online and sees her "balance." What does this mean?
The money you owe
The total amount of money in your account
The number of purchases you made
The amount of interest paid
David goes to an ATM and tries to withdraw $60, but his account only has $50. What is the likely result?
Deposit fee
Overdraft
Returned check fee
Memo error
Luna is reviewing her monthly bank statement and wants to make sure all her transactions are correct. What does Luna need to do to reconcile her bank statement?
Ask the bank to remove a charge
Match your records with the bank’s to check for accuracy
Deposit a large check
Cancel your account
Grace notices a few unfamiliar charges on her bank statement. Why is it important for her to regularly check her bank statements and track her spending?
So you can spend more without worry
To catch errors or fraudulent activity early
To guarantee free checking services
To avoid paying taxes
You begin with $150 in your checking account. You write a check for $73.25, get paid and deposit $210, and then incur a $35 overdraft fee due to a pending charge. What is your final balance?
$251.75
$321.75
$150.00
$251.25
After forgetting to record a $40 purchase, Melissa discovers her account balance is negative and is charged $35. What vocabulary word describes this scenario?
Overdraft Fee
Returned check
Debit
Deposit
Grace wants to check her bank account's activity and ensure her balance is correct. Which document should she use?
Memo
Bank statement
Credit report
Pay stub
Sophia is reviewing her monthly finances. Which of the following are considered sources of income for her? (Check all that apply)
Paycheck
Interest from savings
Rent/Mortgage
Utility Bill
Babysitting income
Scenario: Ava checks her bank statement and sees a charge she doesn’t recognize. What should she do?
Close her account
Call her friend
Report the charge to the bank immediately
Withdraw all her money
Scenario: You use your debit card to pay for $45.75 (clothes), $19.99 (subscription), and $8.50 (snacks). You started with $100. What is your new balance?
$25.76
$30.76
$35.26
$40.76
You have $250 in your account. After using your debit card for a $25 meal and $45 for gas, you use your credit card to buy $29.00 worth of clothes. What is your checking account balance?
$190.00
$180.00
$175.00
$151.00
Aria is shopping and has both a credit card and a debit card. She wonders what the difference is between using each card to pay for her purchases. What is the difference between a credit card and a debit card?
A credit card uses your money; a debit card borrows money
A debit card builds your credit score
A credit card borrows money and may charge interest; a debit card uses your bank funds
There is no difference
Benjamin takes out a loan from the bank to buy a car. The bank charges him extra money for borrowing, which he has to pay back along with the loan amount. What is this extra cost called?
A reward for budgeting
The cost of borrowing money or it can be earned from savings accounts
A type of tax
A loan fee paid to your friends
Ava receives her monthly credit card statement. Which of the following actions by Ava demonstrates responsible credit card usage?
Paying the minimum balance each month
Paying the full balance each month to avoid interest
Using credit to buy non-essentials regularly
Maxing out your card to improve your credit score
Benjamin is applying for a loan at the bank. The loan officer tells him they will check his credit score before approving his application. What is a credit score?
A type of bank account
A number that represents your financial trustworthiness
The total amount of money in your savings account
The interest rate on your credit card
Ben is planning to buy a car in the future and wants to improve his credit score to get a better loan rate. What should he do?
Pay bills late
Avoid checking his credit
Pay credit card bills on time and in full
Open as many credit cards as possible
Scenario: Emma is offered a store credit card with a high interest rate. She wants to build credit. What is the safest strategy?
Accept it and buy a lot to build history
Use it only for small purchases and pay it off monthly
Max out the card immediately
Never use the card
Scenario: Leo spends more than he earns each month and covers the difference with a credit card. What is likely to happen over time?
His credit score will increase quickly
He will build up debt and pay interest
He will earn rewards for overspending
He will never pay fees
Ava wants to manage her finances better. She decides to create and follow a monthly budget. Which of the following is a benefit Ava might experience from budgeting?
It increases your income automatically
It helps you control spending and save for goals
It guarantees you will never have unexpected expenses
It allows you to spend freely without tracking
Olivia wants to set aside some money for future needs and earn interest on her savings. What type of account should she open?
To avoid tracking your spending
To withdraw cash daily
To earn interest and save money for future needs
To pay monthly bills
Olivia wants to avoid overdraft fees on her checking account. Which action should she take?
Regularly monitoring your account balance
Spending more than your account holds
Ignoring bank notifications
Writing checks without checking your balance
Daniel wants to make sure he can manage his expenses and save for future goals. Which of the following is the best reason for Daniel to set a monthly budget?
To ensure you spend all your money each month
To avoid using a bank account
To help you manage expenses and save for future goals
To increase your credit card limit automatically
Ethan wants to save $600 in 6 months for a new bicycle. How much should he save each month?
$120
$75
$50
$100
Maya uses her debit card to buy groceries, but she spends more than her account balance. What happens next?
Your credit score improves
Your account balance increases
You may be charged an overdraft fee
You receive a bonus
Elijah is learning about personal finance and wants to understand budgets. Which of the following is NOT true of a budget? [note capitalization of “NOT”]
Budgets help you plan how to spend money you earn or receive
Once a budget is set, it should not be revisited
A budget can include charitable giving
Budgets include both income and expenses
