Finance Basics Quiz

What is a budget?

• A plan for spending money

• A type of savings account

• A loan to buy a house

• A credit card

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Which of the following is a purpose of budgeting?

• To spend all your money

• To plan how to use your money wisely

• To borrow money from banks

• To avoid paying taxes

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What does it mean to save money?

• To spend money on gadgets

• To keep money aside for future use

• To donate money

• To borrow money

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Why is it important to set financial goals?

• To ensure you can buy everything you want immediately

• To plan for financial emergencies

• To make sure you spend all your money

• To avoid making a budget

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What is an example of a short-term financial goal?

• Saving for retirement

• Buying a car in 10 years

• Saving for a vacation next year

• Paying off a 30-year mortgage

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Which strategy can help you save money?

• Spending all your money at once

• Ignoring your budget

• Setting aside a portion of your income regularly

• Borrowing money frequently

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What is a fixed expense in a budget?

• Money spent on entertainment

• Variable utility bills

• Monthly rent payment

• Dining out

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What tool can help you track your spending and savings?

• A shopping list

• A budgeting app

• A novel

• A movie ticket

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What should you do if you consistently spend more than your budget allows?

• Continue spending the same way

• Increase your income

• Adjust your budget to reflect realistic spending

• Eliminate all spending

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Why might someone open a savings account?

• To get a loan

• To keep their money safe and earn interest

• To spend more money

• To avoid making a budget

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DOK Level 1: Recall