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

1

What is a common reason for saving money?

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

2

Which is a necessary expense?

Video games
Food
Vacations
Toys

3

What is the purpose of a budget?

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

4

What is income?

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

5

What happens if you run out of money?

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

6

Which is an example of an optional expense?

Utilities
Eating at restaurants
Groceries
Rent

7

What is a necessary expense?

Buying toys
Paying rent
Buying a car
Going to the movies

8

True or false: All expenses are necessary.

True
False

9

What should you do with extra money?

Save some
Give it away
Spend it all
Ignore it

10

How can saving help in emergencies?

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

11

What does saving mean?

Spending money
Giving money away
Keeping money for later
Borrowing money

12

Which is a good financial choice?

Spending all income
Buying unnecessary items
Creating a budget
Ignoring expenses

13

What is a budget?

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

14

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

False
True

15

How can you balance income and expenses?

Create a budget
Spend all income
Ignore savings
Borrow money

16

Which is a good way to avoid debt?

Ignore expenses
Borrow money
Spend more than earn
Create a budget

17

What is an example of income?

Money borrowed
Money from work
Money saved
Money spent

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

Questions 17

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

Questions 17