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Budgeting Quiz: 10 Money Saving Questions with Answers

Written by the Quizzeela team · Reviewed by Utsav Raj
Last checked · 10 questions · Easy

A simple budget is the first step to money freedom. Test your budgeting basics in 10 questions.

Play as a timed quiz and earn coins

1In the 50/30/20 budget rule, the 20% is for:

  1. Holidays
  2. Shopping
  3. Savings and paying off debt
  4. Rent
Show answer
Answer: C. Savings and paying off debt. The rule suggests about 50% for needs, 30% for wants and 20% for savings and debt repayment.

2An emergency fund should usually cover:

  1. 1 week of expenses
  2. Only one big purchase
  3. 5 years of expenses
  4. 3 to 6 months of expenses
Show answer
Answer: D. 3 to 6 months of expenses. Keeping 3 to 6 months of essential expenses helps you handle a job loss or medical bill without loans.

3Which of these is a "need" rather than a "want"?

  1. A new phone every year
  2. Rent for your home
  3. Eating out every weekend
  4. A movie subscription
Show answer
Answer: B. Rent for your home. Needs are essentials like housing, food and utilities. The rest are wants.

4"Pay yourself first" means:

  1. Spend on yourself before bills
  2. Save a fixed amount as soon as you get paid, before spending
  3. Take a loan first
  4. Pay your friends first
Show answer
Answer: B. Save a fixed amount as soon as you get paid, before spending. Saving first, for example through an auto-debit on salary day, makes saving a habit.

5Net worth is:

  1. Your yearly spending
  2. Your bank balance
  3. What you own minus what you owe
  4. Your salary
Show answer
Answer: C. What you own minus what you owe. Net worth = assets (what you own) − liabilities (what you owe).

6By the "rule of 72", money growing at 8% a year doubles in about:

  1. 4 years
  2. 9 years
  3. 12 years
  4. 20 years
Show answer
Answer: B. 9 years. 72 ÷ 8 = 9, so it doubles in about 9 years.

7Inflation of 6% a year means ₹100 today buys:

  1. More next year
  2. Exactly the same
  3. Less next year
  4. Nothing
Show answer
Answer: C. Less next year. If prices rise 6%, the same ₹100 buys less, so savings should aim to beat inflation.

8What is the best way to avoid credit card interest?

  1. Pay only the minimum due
  2. Withdraw cash from the card
  3. Use many cards
  4. Pay the full bill by the due date
Show answer
Answer: D. Pay the full bill by the due date. Paying the full amount by the due date means no interest is charged on purchases.

9Where should an emergency fund usually be kept?

  1. Somewhere safe and easy to access, like a savings account or FD
  2. In risky shares
  3. In a 10-year lock-in
  4. Lent to friends
Show answer
Answer: A. Somewhere safe and easy to access, like a savings account or FD. Emergency money must be safe and available quickly, not locked in or exposed to market falls.

10Why is tracking your expenses useful?

  1. It shows where your money goes so you can cut waste
  2. It lowers taxes automatically
  3. It is required by law
  4. It increases your salary
Show answer
Answer: A. It shows where your money goes so you can cut waste. Knowing where money goes is the first step to spending less and saving more.
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Sources: RBI financial literacy material and common personal finance practice. For learning only, not financial, tax or insurance advice. Found a mistake? Use "Report a mistake" in the timed quiz.