Understanding Personal Finance Basics

Front

Which term describes a plan for managing income and expenses?

Back

B) Budgeting

Front

What is the total amount of money earned before any deductions?

Back

B) Gross monthly income

Front

Which term refers to money received from work or investments?

Back

A) Income

Front

What is the term for money that is set aside for future use?

Back

B) Savings

Front

Which term describes money owed to others?

Back

B) Debt

Front

What is the term for borrowing money that must be paid back with interest?

Back

A) Loan

Front

Which term means to receive money from someone else with the agreement to pay it back?

Back

B) Borrow

Front

What is the term for the cost of borrowing money, usually expressed as a percentage?

Back

B) Interest

Front

Which term refers to the use of money to earn more money, often through stocks or bonds?

Back

A) Investment

Front

What is the amount of money you take home after taxes and deductions?

Back

B) Net monthly income