Basics of Budgeting for Teens

What is a need?

• A luxury item you can live without

• Something essential for survival

• An item you want for entertainment

• A gift for a friend

Which of the following is an example of a want?

• Water

• Shelter

• Video games

• Food

What is the first step in creating a simple budget?

• Spend money on wants

• Track your expenses

• Identify your income

• Save for future goals

If you earn $50 a week from chores, how much will you earn in 4 weeks?

• $100

• $150

• $200

• $250

Why is it important to track monthly expenses?

• To spend more money

• To understand where your money goes

• To avoid saving money

• To increase your wants

Which of the following is a method to track expenses?

• Ignoring receipts

• Using a budget app

• Spending without limits

• Guessing your expenses

If you save $10 each week, how much will you have saved after 10 weeks?

• $50

• $70

• $100

• $120

What is a good strategy for saving for future goals?

• Spend all your money now

• Save a portion of your income regularly

• Only save when you have extra money

• Borrow money to save

How can you differentiate between needs and wants when budgeting?

• Wants are more important than needs

• Needs are essential, wants are additional

• Needs are for fun, wants are for survival

• Wants should be prioritized over needs

What is the purpose of setting a budget?

• To spend more than you earn

• To manage your money effectively

• To avoid saving money

• To increase your debt