Get summary, textual answers, solutions, notes, extras, MCQs, PDF of NBSE Class 9 Financial Literacy Unit 5 What are Expenses? However, the educational materials should only be used for reference, and students are encouraged to make necessary changes.
Summary
The chapter explains the concept of expenses, focusing on two main types: fixed and variable. Fixed expenses remain constant over time, regardless of usage or consumption. Examples include rent and school uniforms. These are predictable, regular costs that need to be paid on time. In contrast, variable expenses fluctuate based on how much you use or consume. For instance, electricity bills may vary depending on how much electricity is used, and dining out with friends can be adjusted according to your budget.
The chapter introduces the idea of “cash management,” which refers to managing the money that comes in (income) and the money that goes out (expenses). A budget is a tool used to keep track of income and expenses. It helps balance spending and saving. By understanding how much money is coming in and how it is being spent, individuals can control their expenses and make better decisions about saving.
An important strategy discussed in the chapter is “Pay Yourself First” (PYF). This means setting aside money for savings before spending on anything else. PYF encourages saving as a habit to secure future goals. The idea is to treat savings like a bill you owe to yourself, ensuring that you prioritize it. The chapter gives examples of successful businessmen who have achieved wealth through proper money management and planning.
Textual MCQs
1. The money you spend on your needs and wants may be termed as
(a) budgets
(b) incomes
(c) expenses
Answer: c. expenses
2. A set amount or exact amount which is incurred every time not depending on the usage or consumption is called as
(a) fixed expenses
(b) variable expenses
(c) cash management
Answer: a. fixed expenses
3. In a budget table, under fixed expenses, the item which will help us to save money should be first
(a) paying loans
(b) paying rent
(c) pay yourself first
Answer: c. pay yourself first
4. Payment of gas bill based on the usage is an example of
(a) fixed expenses
(b) variable expenses
(c) income generating expenses
Answer: b. variable expenses
5. ______ is extremely important to meet our goals.
(a) saving
(b) expense
(c) loan repayment
Answer: a. saving
Extra/additional MCQs
1. What is a fixed expense?
A. An expense that changes with usage
B. An expense that stays the same regardless of usage
C. An occasional expense
D. An unpredictable expense
Answer: B. An expense that stays the same regardless of usage
10. Why is a budget important for most people?
A. It prevents them from making purchases
B. It helps them manage limited money
C. It allows them to earn more
D. It helps them avoid paying bills
Answer: B. It helps them manage limited money
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