Budgeting Basics for Teens

What did Justin initially think about narwhals?

• They were a mythological creature.

• They were a type of fish.

• They were imaginary like unicorns.

• They were real.

Why did Justin need to borrow money from Juan?

• He had to pay for a vacation.

• He lost his job.

• He wanted to buy a new house.

• He spent all his money on props and his car broke down.

What did Juan teach Justin instead of charging interest?

• How to start a business.

• How to save for retirement.

• Better money habits and budgeting.

• How to invest in stocks.

What is the main goal of a budget?

• To keep expenses higher than income.

• To avoid all kinds of expenses.

• To keep income higher than expenses.

• To track only fixed expenses.

What tool is introduced for budgeting in the first part of the unit?

• Financial statements.

• Spreadsheets.

• Mobile apps.

• Manual ledgers.

What additional benefit do spreadsheet skills provide?

• They help in learning new languages.

• They are useful for traveling.

• They make you more employable.

• They help in cooking.

What are the two important kinds of expenses identified in the budgeting methods?

• Recurring and one-time expenses.

• Short-term and long-term expenses.

• Necessary and luxury expenses.

• Fixed and variable expenses.

What is the 50-30-20 rule?

• A method to divide income into savings, investments, and expenses.

• A method to track daily expenses.

• A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings.

• A rule for investing in stocks.

What is envelope budgeting?

• A method to track online expenses.

• A way to invest in real estate.

• A stricter approach to budgeting where money is allocated to different categories in envelopes.

• A method to save money in envelopes.

What is the purpose of financial statements in budgeting?

• To plan for retirement.

• To manage daily expenses.

• To track investments.

• To tell you what's going on in your accounts.