Personal Financial Literacy

Which of the following options is an example of a SHORT-term goal?

• Someday, Rebecca wants to be a doctor.

• John wants to be able to shoot and make two 3-pointers in his basketball game next week.

• Angela wants to be the kicker on the football team, so she will practice when she can.

• Andrew wants to buy a house before he turns 30. In order to do that, he creates smaller goals to ensure financial well-being.

Which of the following is an example of a LONG-term goal?

• Kai wants to score a touchdown in his next game on Friday, so he will practice every night this week.

• Angelica wants to own a house when she is 30.

• Robert wants to save up $2,000 dollars by the time he turns 18. In order to do that, he sets smaller goals to save from his allowance each week.

• Hailey wants to work more hours at her job so she doesn't have to take out loans for school.

It's a good idea to make an emergency fund one of your highest saving priorities.

• True

• False

An emergency fund should cover three to six months worth of realistic living expenses.

• True

• False

What two things does a budget compare?

• income and expenses

• salary and debt

• hourly wages and taxes

• taxes and fixed expenses

When someone goes into debt, that means they:

• have a lot of money in their savings

• have never set up a budget

• spent more money than they have earned

• opened a credit card

If you use a credit card but don't have enough money to pay your bill when the statement is due, you will end up paying more than what you originally spent due to interest and possible late fees.

• True

• False

Income taxes are considered to be important for which of the following reasons EXCEPT?

• They can help cities make improvements

• They can pay for bridges and schools

• They pay the police and fire departments

• They pay individual people at stores to work

Which of the following could produce the biggest return for investors?

• Cash Accounts

• Government Bonds

• Stocks

• Collectibles

John wants to buy a new skateboard. He has enough money in his checking account, but he chooses to pay over a period of time. The skateboard is $150 including tax, but by the time he pays off the skateboard it cost him $187.67. John used a ________ card.

• credit

• debit