6, 4, 2 Understanding Income vs. Expenses (Financial Literacy) Flashcards

1

Which is a necessary expense?

Toys
Vacations
Food
Video games

2

Which is a good financial choice?

Buying unnecessary items
Creating a budget
Spending all income
Ignoring expenses

3

What is a common reason for saving money?

To spend it quickly
To lend to friends
To waste it
For emergencies

4

What is an example of income?

Money saved
Money borrowed
Money from work
Money spent

5

True or false: All expenses are necessary.

True
False

6

What is a necessary expense?

Buying a car
Paying rent
Buying toys
Going to the movies

7

What is the purpose of a budget?

To avoid saving
To ignore income
To waste money
To track spending

8

What is income?

Money from jobs
Money for savings
Money for expenses
Money for fun

9

What happens if you run out of money?

You can’t buy anything
You can save more
You can spend less
You can borrow more

10

What is a budget?

A loan plan
A saving plan
A fun plan
A spending plan

11

Which is an example of an optional expense?

Eating at restaurants
Utilities
Rent
Groceries

12

How can saving help in emergencies?

It pays for vacations
It buys toys
It helps with bills
It covers unexpected costs

13

What does saving mean?

Borrowing money
Spending money
Giving money away
Keeping money for later

14

What should you do with extra money?

Save some
Spend it all
Ignore it
Give it away

15

True or false: Spending more than you earn leads to debt.

True
False

16

Which is a good way to avoid debt?

Spend more than earn
Ignore expenses
Borrow money
Create a budget

17

How can you balance income and expenses?

Spend all income
Borrow money
Create a budget
Ignore savings

6, 4, 2 Understanding Income vs. Expenses (Financial Literacy)

Questions 17

6, 4, 2 Understanding Income vs. Expenses (Financial Literacy)

Questions 17