Lesson T4.1.2

T4.1.2 Budgeting Quiz: KS3 Citizenship, Unit 4

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson T4.1.2, Budgeting: 20 multiple choice questions for the KS3 Citizenship (National Curriculum), Unit 4: Money and risk, written with Revision Ninja.

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The 20 questions

  1. What is a budget deficit?

    • When prices stay exactly the same
    • When spending is greater than income over a period
    • When income is greater than spending over a period
    • When a bank has no customers

  2. What is a budget surplus?

    • When the government raises taxes to pay for new public services
    • When income is greater than spending over a period
    • When spending is greater than income over a period of time
    • When someone has no bank account and keeps their money at home

  3. Which of these is the most useful first step in creating a budget?

    • Listing all income and regular expenses
    • Ignoring small costs
    • Buying the most expensive item available
    • Borrowing money for the year ahead

  4. Why is an emergency fund helpful in a budget?

    • It guarantees a profit every month on the money that is set aside
    • It removes the need to plan for the future and for the year ahead
    • It covers unexpected costs without needing to borrow
    • It allows a person to avoid paying tax on their income each year

  5. A pupil saves £5 of their £20 weekly pocket money. What percentage of their income do they save?

    • 50%
    • 25%
    • 20%
    • 5%

  6. Why is it important to include both essential and non-essential spending in a budget?

    • So that only essential costs are paid from the family's income each month
    • So that non-essential costs are hidden from the people who share the budget
    • To see the full picture and decide where money can be cut if needed
    • So that the budget always shows a surplus at the end of each month

  7. Which is a fixed expense in a household budget?

    • Occasional gifts
    • Monthly mortgage or rent payment
    • Money spent on holidays that changes each year
    • Spending on takeaways

  8. Which is a variable expense in a household budget?

    • Spending on food, which changes from month to month
    • Monthly rent paid to the landlord for the family's home each month
    • A fixed gym membership that is paid by direct debit every month
    • Annual insurance premium paid to the insurer once each year

  9. What does it mean to 'live within your means'?

    • Spending no more than you earn or can afford to borrow responsibly
    • Refusing to spend anything at all, even on essential bills and food
    • Spending all your income each month on the things that you want
    • Borrowing as much as possible to buy the goods you want straight away

  10. A family's monthly budget shows income of £2,400 and spending of £2,400. Which term describes this?

    • An inflated budget
    • A surplus
    • A balanced budget
    • A deficit

  11. Which of these is an example of a budgeting decision?

    • Refusing to think about money at all, and leaving the bills to be sorted later
    • Buying everything on impulse as soon as it is seen in a shop window
    • Choosing to cut back on takeaways to save for a bike
    • Ignoring bills until they go unpaid and the debt starts to build up

  12. What is meant by 'saving for a goal'?

    • Lending money to friends without a record of what has been agreed
    • Setting aside money regularly for a planned purchase or future need
    • Spending money as soon as it arrives in the account each week
    • Using all savings for daily spending so the account is kept empty

  13. Which of these would make a budget more realistic?

    • Ignoring small regular payments
    • Assuming income will always rise
    • Leaving out bills that are paid annually
    • Including an allowance for unexpected costs

  14. Why might a family review its budget each month?

    • The government requires a monthly review of all budgets
    • Income and costs change, so the plan may need updating
    • Reviewing budgets stops prices rising
    • Budgets should never be changed

  15. What is the best description of a household's 'disposable income'?

    • The total value of everything a household owns, including its property
    • The money a household owes to the bank in loans and credit card debt
    • The money left over after income tax and other deductions come out of earnings
    • The money the government gives to households through benefits each year

  16. Which of these is the purpose of a savings plan within a budget?

    • To guarantee a fixed profit
    • To prepare for future costs and goals
    • To pay off all government debt
    • To avoid any spending

  17. A student's budget shows £200 of income and £240 of spending. What should they do?

    • Ignore the difference and hope that the next month will be better
    • Spend more to balance it by using the money set aside for emergencies
    • Reduce spending or find more income to avoid a deficit
    • Borrow the full amount for the whole year at a high rate of interest

  18. Why is it helpful to set limits on certain spending in a budget?

    • It guarantees a surplus every month
    • It stops all bills being paid
    • It means no spending can ever change
    • It helps control costs and avoid overspending

  19. Which of these shows a budget working well?

    • Income is always spent before bills are paid
    • Income covers essential costs and some money is saved
    • Spending is never recorded
    • Debt grows each month without a plan

  20. Which factor could cause a household budget to change unexpectedly?

    • The name of the household's bank
    • The number of pupils at the local school
    • A sudden rise in prices or a change in income
    • The colour of the front door

All KS3 Citizenship quizzes