Personal Money Management

What is the primary purpose of creating a budget?

• To spend more money

• To track income and expenses

• To avoid spending any money

• To impress friends with your financial habits

Which of the following is NOT a key component of good personal finance?

• Budgeting

• Saving

• Investing

• Ignoring financial news

What is the main purpose of an emergency fund?

• To cover unexpected expenses

• To fund a lavish vacation

• To pay off credit card debt

• To invest in the stock market

Which of the following is NOT considered a fixed expense?

• Car payment

• Rent

• Mortgage payment

• Groceries

What is the primary goal of investing?

• To grow your money over time.

• To avoid paying taxes.

• To avoid paying interest on loans.

• To spend money quickly.

Which of the following is a key component of good credit?

• Maxing out credit cards

• Paying bills late

• Making on-time payments

• Applying for many credit cards at once

What is a budget?

• A list of all your income

• A plan for how you will spend your money

• A record of all your expenses

• The amount of money you owe

What is the purpose of saving money?

• To spend it immediately

• To avoid paying taxes

• To impress your friends

• To achieve financial goals, such as buying a house or retiring

Why is it important to track your spending?

• To avoid using credit cards

• To identify areas where you can cut back and save money

• To impress your friends

• To avoid paying taxes

What is the difference between needs and wants?

• Needs are things you can live without, while wants are essential

• Wants are always more expensive than needs

• Needs are essential for survival, while wants are desires

• There is no difference between needs and wants