Money Basics
What is money used for?
A) ONLY buying toys
B) Paying for goods and services
C) Making every decision
D) ONLY paying bills
B) Paying for goods and services
Which item is usually a NEED?
A) Medicine
B) Concert tickets
C) Video game
D) Collectible item
A) Medicine
Which item probably costs the most?
A) A gallon of milk
B) A television
C) A candy bar
D) A pack of UNO cards
B) A television
What is a budget?
A) A punishment for spending money
B) A plan for how to use your money
C) A list of things you want
D) A type of bank account
B) A plan for how to use your money
What should you do before making an unplanned purchase?
A) Pause and think
B) Buy it immediately
C) Ask a friend to pay
D) Ignore the price
A) Pause and think
Which of the following is an example of INCOME?
A) Money earned from a job
B) A phone bill
C) Buying groceries
D) Lending someone $20
A) Money earned from a job
Which item is usually a WANT?
A) Basic food
B) Safe housing
C) Designer sunglasses
D) Necessary transportation
C) Designer sunglasses
One shampoo bottle costs $3. Another costs $8. What should you check before choosing which one to buy?
A) The bottle's color
B) Size, quality, and how well it works
C) Which one has the longest name
D) Nothing - Always choose the expensive one
B) Size, quality, and how well it works
Which expense should generally be placed in a budget before entertainment?
A) Concert tickets
B) Video games
C) Groceries
D) Restaurant meals
C) Groceries
Someone says, "Buy it right now or you'll regret it!" What is the best response?
A) "Okay, I'll buy it."
B) "I need time to think about it."
C) "I'll buy two."
D) "I'll borrow the money."
B) "I need time to think about it."
You have $20 and spend $8. How much remains?
A) $8
B) $10
C) $12
D) $28
C) $12
Your shoes have holes and hurt your feet. Are replacement shoes a NEED or a WANT?
A) Need
B) Want
C) Neither
D) Always both
A) Need
A shirt normally costs $20 and is on sale for $15. How much would you save?
A) $3
B) $5
C) $15
D) $35
B) $5
You have $100. Your groceries cost $40 and transportation costs $25. How much remains?
A) $25
B) $35
C) $40
D) $65
B) $35
You want headphones, but the reviews say they break easily. What should you do?
A) Buy them because they are cheap.
B) Compare other options.
C) Ignore the reviews.
D) Purchase two pairs.
B) Compare other options.
Which action helps you know where your money went?
A) Ignoring your purchases
B) Tracking your spending
C) Buying everything with cash
D) Spending your money quickly
B) Tracking your spending
Which statement about needs and wants is TRUE?
A) Wants are always bad.
B) Needs and wants are the same for everyone.
C) Wants should always come before bills.
D) Something can be a need for one person and a want for another.
D) Something can be a need for one person and a want for another.
Which option is the better price per item?
A) One roll of paper towels for $3
B) Six rolls for $12
C) They cost the same per roll
D) There is not enough information
B) Six rolls for $12
Why should savings be included in a budget?
A) To prepare for goals and unexpected expenses
B) So you never spend any money
C) To avoid paying bills
D) So you can lend money to everyone
A) To prepare for goals and unexpected expenses
A friend asks to borrow the money you need for your phone bill. What is the smartest response?
A) Lend all the money.
B) Skip your phone bill.
C) Explain that the money is already needed for your phone bill.
D) Borrow money from someone else to lend to your friend.
C) Explain that the money is already needed for your phone bill.
You receive $50. Which plan gives some money to spending and some to saving?
A) Spend all $50
B) Save all $50 and never use it
C) Spend $35 and save $15
D) Lend all $50 to a friend
C) Spend $35 and save $15
You have $25. You need $20 for transportation but want an $18 restaurant meal. What is the smartest choice?
A) Buy the meal and worry about transportation later.
B) Pay for transportation and save the remaining $5.
C) Lend the money to someone else.
D) Spend all $25 on entertainment.
B) Pay for transportation and save the remaining $5.
An online game store says, "Spend $15 more to receive free shipping." What is the smartest response?
A) Add an extra item to the cart
B) Buy two extra items
C) Compare the added cost with the shipping cost
D) Always spend the additional $15
C) Compare the added cost with the shipping cost
You budgeted $30 for entertainment, but an unexpected $25 medication expense occurs. What is the smartest decision?
A) Ignore the medication expense.
B) Borrow money without a repayment plan.
C) Reduce or put entertainment spending on hold.
D) Spend the entertainment money first.
C) Reduce or put entertainment spending on hold.
Which question best helps determine whether you can afford something?
A) "Do I want it?"
B) "Does someone else own it?"
C) "Will I still have enough for my responsibilities?"
D) "Can I buy it before the sale ends?"
C) "Will I still have enough for my responsibilities?"