1. What is the first step in creating a budget?

Correct Answer: B. Listing your monthly income and expenses

Explanation: Knowing how much you earn and spend is the foundation of budgeting. You can’t plan what you don’t track.

2. Which of the following is a fixed expense?

Correct Answer: C. Rent or mortgage

Explanation: Fixed expenses stay the same each month—like rent, subscriptions, or car payments.

3. What does “pay yourself first” mean?

Correct Answer: C. Save a set amount before spending on anything else

Explanation: Paying yourself first means treating savings like a priority—automate it and build your future.

4. What’s a smart way to track your spending?

Correct Answer: C. Use a notebook, spreadsheet, or app

Explanation: Tracking helps you spot patterns, waste, and areas for improvement—whether digital or paper-based.

5. What’s one way being organized can help your finances?

Correct Answer: B. It saves time and helps you avoid late fees

Explanation: Organization reduces stress and missed deadlines—saving money on fees and boosting confidence.