Introduction to Personal Financial Planning
This worksheet introduces 8th-grade students to fundamental concepts of personal financial planning, including budgeting, saving, and understanding different types of income and expenses.
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Introduction to Personal Financial Planning
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Read each question carefully and answer to the best of your ability. This worksheet covers basic concepts of personal financial planning.
1. Which of the following is the best definition of a budget?
A plan for how to spend and save your money.
A list of all the things you want to buy.
The total amount of money you earn.
Money you receive as a gift.
2. What is the primary purpose of saving money?
To spend it all immediately.
To have funds for future needs and goals.
To avoid paying taxes.
To buy unnecessary items.
3. Money earned from a job or business is called .
4. A regular payment for expenses like rent or a loan is known as a .
5. Setting aside money for a specific future purpose is called .
6. Wants are essential for survival, while needs are things you desire but can live without.
True
False
7. An emergency fund is a good example of short-term savings.
True
False
8. List two examples of fixed expenses and two examples of variable expenses.
9. Why is it important to track your spending?
Match each term on the left with its correct definition on the right.
10. Income
a. Money spent on goods and services.
11. Expense
b. A goal that can be achieved in less than a year.
12. Short-term goal
c. Money received, especially on a regular basis, for work or through investments.
Use the words below to complete the sentences.
13. Creating a helps you understand where your money goes each month.
14. Putting money into something with the expectation of a profit is called .
15. Money set aside for future use or emergencies is called .