Mastering Personal Finance Basics

Which of the following is an example of a fixed expense in a budget?

• Movie tickets

• Monthly rent

• Eating out

• Buying a new video game

What does it mean to "save" money?

• To spend money on things you want

• To keep money for future use

• To borrow money from a friend

• To pay bills

Which of the following is considered a "need"?

• Designer shoes

• Cell phone games

• Healthy food

• Concert tickets

What is credit?

• Money you earn from a job

• Money you borrow and promise to pay back

• Money you find on the street

• Money you save in a piggy bank

Which of the following is an example of a financial goal?

• Watching TV after school

• Saving $50 to buy a new backpack

• Playing video games with friends

• Eating lunch at school

What is a budget?

• A list of your favorite things

• A plan for how to spend and save your money

• A type of bank account

• A way to borrow money

What does the term "interest" mean in personal finance?

• The amount of money you borrow from a friend

• The extra money you earn or pay when saving or borrowing money

• The price of a new item

• The total amount you spend in a month

Which of the following best describes the word "investing"?

• Spending money on snacks

• Putting money into something to try to make more money

• Giving money away to friends

• Hiding money under your bed

Which of the following best describes the difference between a need and a want?

• Needs are things you would like to have; wants are things you must have

• Needs are things you must have; wants are things you would like to have

• Needs and wants are the same

• Needs are always more expensive than wants

Which of the following is an example of a variable expense?

• Monthly rent

• Grocery shopping

• Car payment

• Internet bill