Exploring Financial Literacy 44 Copyright Goodheart-Willcox Co., Inc. May not be reproduced or posted to a publicly accessible website. Your Financial IQ Before reading this chapter, answer the following questions to see how much you already know about budgeting. 1. What is a budget? ______________________________________________________________________________ ______________________________________________________________________________ 2. How do you think using a budget could help you manage your money? ______________________________________________________________________________ ______________________________________________________________________________ 3. How do you keep track of the money you receive? ______________________________________________________________________________ ______________________________________________________________________________ 4. How do you keep track of the money you spend in a typical day or week? ______________________________________________________________________________ ______________________________________________________________________________ 5. What is a charitable contribution? ______________________________________________________________________________ ______________________________________________________________________________ 6. What is a fixed expense? ______________________________________________________________________________ ______________________________________________________________________________ 7. What is a variable expense? ______________________________________________________________________________ ______________________________________________________________________________ 8. What does it mean to “pay yourself first” when managing your money? ______________________________________________________________________________ ______________________________________________________________________________ 9. What is discretionary income? ______________________________________________________________________________ ______________________________________________________________________________ 10. What steps are involved in creating a budget? ______________________________________________________________________________ ______________________________________________________________________________