Money and Debt Unit Test

What is the definition of a budget?

• A plan for saving and spending money

• A list of things you want to buy

• A type of bank account

• A way to earn money

Which of the following is an example of a need?

• A new video game

• Food and water

• A smartphone

• A concert ticket

If you earn $50 dollars a week from your allowance and spend 30, how much do you save?

• $10

• $20

• $30

• $40

Why is it important to track monthly expenses?

• To know how much money you have left to spend

• To impress your friends

• To avoid paying taxes

• To increase your income

Which of the following is a good strategy for saving money?

• Spend all your money as soon as you get it

• Save a portion of your income regularly

• Only save money when you feel like it

• Borrow money to save

How can creating a budget plan help you manage your money better?

• It helps you spend more than you earn

• It allows you to see where your money goes and make adjustments

• It makes you spend less on things you need

• It forces you to save all your money

Consider the following scenario: You have a budget of $100 dollars for the month. You spend 40 on needs and $30 on wants. How much do you have left?

• $20

• $30

• $40

• $50

What is the difference between needs and wants?

• Needs are things you can live without; wants are essential

• Needs are essential for survival; wants are additional desires

• Needs are always more expensive than wants

• Needs are things you want; wants are things you need

If you want to save for a new bike that costs $200 and you save $20 each month, how many months will it take to save enough money?

• 5 months

• 10 months

• 15 months

• 20 months

Match the words to their definitions.

• Budget

• Your is the money that you earn, like from a job.

• Expenses

• When you create a budget, it should always be for your

• Income

• A plan you have for what you spend your money on is called a

• Needs

• Things that you want to do that costs money is

• Entertainment

• Your are the things that you spend money on.