Personal Finance Pretest

Front

What is the primary purpose of debits and credits in personal finances?

Back

To track income and expenses

Front

Which of the following is an example of a debit in a personal budget? A paycheck deposit, A credit card payment, A utility bill payment, A savings account interest payment

Back

A utility bill payment

Front

What would be an example of a credit in personal finances?

Back

Bonus check from work

Front

Which of the following is NOT a skill related to personal budgeting? Understanding income and expenses, Creating a savings plan, Setting financial goals, Ignoring monthly bills

Back

Ignoring monthly bills

Front

How does salary typically correlate with education level?

Back

Higher education often leads to higher salaries

Front

Which of the following is an important component of a personal budget? Ignoring savings, Including all monthly expenses, Estimating income by rounding, Excluding taxes

Back

Including all monthly expenses

Front

What is the first step in creating a personal budget?

Back

Track monthly income and expenses

Front

What does it mean to make purchases based on a given budget?

Back

Only spending money on items essential to your goals

Front

What is the difference between net and gross income?

Back

Gross income is before deductions, net income is after.

Front

What are typical deductions that impact net income? Options: Bonuses and commissions, Federal and state taxes, insurance premiums, Savings account deposits, Investment returns

Back

Federal and state taxes, insurance premiums