Personal Finance Budget (PSHE Y7)

What is budgeting?

• A) Having money left over at the end of the month.

• B) A plan made in advance regarding the expenditure of money based on available income.

• C) The ability to pay your bills on time.

• D) Having enough money to go out to eat.

Which of the following is an example of a 'fixed expense'?

• A) Food and groceries.

• B) Mortgage or rent payments.

• C) Charitable contributions.

• D) Gas for your car.

The best way to start the budgeting process is to

• A) Start tracking all of the money you spend for a period of time, usually a month, so that you have an understand of where your money goes.

• B) Automatically deposit money into a savings account with each paycheck.

• C) Pay your credit card balance(s) in full each month.

• D) Curbing your spending on incidental items such as dining out or entertainment.

In regards to personal finances, "zero-based budgeting" is

• A) Stopping all spending on incidentals such as dining out or entertainment.

• B) The practice of budgeting every dollar of income received.

• C) A budgeting method where you put 'zero' dollars on your credit card

• D) The ability to pay all of your bills each month with something left for 'whatever'.

Which of the following are the best tools for budgeting?

• A) Personal financial management software.

• B) A pencil and paper.

• C) Computer spreadsheets.

• D) Any of above. Whatever works best for you.

With a "rainy day" savings fund, you

• A) Set aside money for emergencies or essential spending in case of a loss of income.

• B) Set aside money to use to treat yourself to something special when the weather turns bad.

• C) Put a fixed amount of money into a savings account each time it rains.

• D) Save up money to buy an umbrella and other types of rain gear.

When putting together a budget, which of the following items should you include?

• A) Fixed Expenses.

• B) Discretionary Expenses.

• C) Savings

• D) All of the above.

What is the most likely reason for a budget to fail?

• A) Buying a pair of shoes you just couldn't resist.

• B) Not using a personal financial planning website or software

• C) Failing to establish an emergency fund to account for unforeseen expenses.

• D) Not making enough money.

Each day after school, Brittany has soccer. She could spend that time babysitting for extra cash. Babysitting his her

• A) Investment

• B) Budget

• C) Short term goal

• Opportunity cost

All of these are forms of cash

• A) Credit cards, checks and debit cards

• B) Checks, credit cards and coins

• C) Currency, checks and debit cards

• D) Currency, coins and credit cards