Financial Literacy Unit Review

Front

Which of these statements is true about Needs vs Wants? Everyones wants and needs are the same., Needs and wants are irrelevant, and weighing them out won't help you budget., People's wants and needs differ from person to person. , Wants are more important than needs.

Back

People's wants and needs differ from person to person.

Front

What is Gross Pay?

Back

Total earnings before any deductions are taken.

Front

What is Net Pay?

Back

Total earnings after deductions are taken.

Front

When we say "Pay yourself first" what does this imply?

Back

Putting some of your paycheck into your savings/retirement fund.

Front

Which of these describes the difference between fixed and variable expenses? Fixed expenses constantly variable expenses stay the same. Fixed expenses stay the same while variable expenses constantly change. Fixed expenses are mostly the same but change occasionally, variable expenses never change. None of these

Back

Fixed expenses stay the same while variable expenses constantly change.

Front

You earn a salary of $50,000 per year and decide to save 10% of your gross pay. You set a goal of creating a $15,000 emergency fund. How long will it take for you to achieve your goal?

Back

3 years

Front

The 50/30/20 rule says that you should use 50% for ____, 30% for ____, and 20% for ____.

Back

Needs, wants, savings

Front

Which budgeting strategy involves making sure every available dollar is accounted for?

Back

Zero-Based Budget

Front

All of these are reasons budgeting apps can help maintain a budget EXCEPT... You can connect your bank account to budgeting apps to make it easier to track your spending. Being able to see your spending on your phone makes for easier tracking. Some apps have the ability to follow a specific budgeting framework such as zero-based budget or the 50/30/20 rule.

Back

They physically close off access to your bank accounts if you are spending too much.

Front

Which of the following is an example of buying something you NEED? Options: "I want to replace something that is no longer working."; "I want to impress someone/ change how they feel about me."; "I'm feeling down, and I need to boost my spirits."; "I don't want to miss out on these deals during the sale!"

Back

"I want to replace something that is no longer working."