Understanding Budgeting Basics

What is the main purpose of saving money?

• To buy things you want immediately

• To have money for future needs or emergencies

• To spend on entertainment

• To pay for daily expenses

Which of the following is an example of a "need"?

• A new video game

• A pair of designer shoes

• Food and water

• A smartphone upgrade

• 25%

• 50%

• 75%

• 100%

Which of the following best describes a "want"?

• A winter coat in cold weather

• A new toy when you already have many

• Medicine when you are sick

• Paying for school supplies

Why is it important to distinguish between needs and wants when budgeting?

• To ensure you spend all your money

• To prioritize spending on essential items first

• To avoid saving money

• To buy more luxury items