Exploring the Basics of Budgeting for Kids

What is the primary purpose of a budget?

• To track only your expenses

• To plan for managing your money

• To increase your income

• To avoid paying taxes

How often is a budget typically reviewed and revised?

• Never

• Every day

• Once a year

• Periodically as needed

Which of the following is NOT typically included in a budget?

• Future large purchases

• Unplanned expenses

• Discretionary expenses

• Income from a job

What is an example of a discretionary expense?

• Rent

• Eating out

• Groceries

• Utilities

How can creating a budget help you financially?

• By encouraging you to live beyond your means

• By increasing your expenses

• By helping you make good financial decisions

• By hiding your financial status

What can you do with the money saved by cutting unnecessary expenses?

• Invest it or pay off debt

• Spend it on more unnecessary items

• Hide it

• Ignore it

Who should create a budget?

• Only people struggling financially

• Only businesses

• Everyone

• Only wealthy individuals

What is a common misconception about budgets?

• They help in planning large purchases

• They assist in avoiding overspending

• They provide a clear financial picture

• They are only for people in financial distress