Understanding Money Basics Quiz

What is a budget?

• A way to spend more money

• A plan for managing money

• A savings account

• A loan

What does it mean to “save” money?

• Spend it fast

• Keep it for later

• Give it to friends

• Hide it

Which of these is a need?

• New shoes for fashion

• Cell phone with unlimited data

• Food and water

• Movie tickets

• You broke even

• You saved $10

• You are in debt

• You made a profit

What is interest in a savings account?

• Money you owe

• Extra money the bank gives you

• The cost of having an account

• A discount

What is the primary purpose of a budget?

• To increase spending

• To manage financial resources

• To eliminate all expenses

• To avoid saving

What happens when you save money in a bank account?

• It disappears

• It earns interest

• It loses value

• It is taxed immediately

Which of the following is an example of a want?

• Rent payment

• Groceries

• Designer handbag

• Utility bills

What is the result of spending more than you earn?

• Savings increase

• Debt accumulation

• Financial stability

• Profit generation

What is a common feature of a savings account?

• High risk

• Interest earnings

• Unlimited withdrawals

• No fees