Financial Literacy

What is a budget?

• An estimate of income and expenditure for a set period of time. Simply, it’s a financial plan.

• The exact amount of money a person has to put in their savings account for a set period of time.

• The exact amount of money a person makes in a period of time.

When following the 50/20/30 rule, what percentage of your income should go into each of these categories?

• Savings: 30

  Fun: 50

  Fixed Expenses: 20

• Savings: 20

  Fun: 50

  Fixed Expenses: 30

• Savings: 20

  Fun: 30

  Fixed Expenses: 50

Which of these are good tips to follow when trying to stay on budget?

• When going shopping, don't make a list ahead of time

• Be wary of little purchases

• Avoid unhealthy habits

• Use your resources

Which of these are good tips to follow when trying to stay on budget?

• Compare prices

• Have an emergency fund

• Buy what you want, whenever you want it

• Stick to a routine

• Differentiate between your wants and your needs

When opening a savings account, do you want an account with a high or low interest rate?

• High

• Low

When taking out a loan, do you want a loan with a high or low interest rate?

• High

• Low

Where should you put your money that you will not need to spend anytime soon?

• Savings Account

• Checking Account

Where should you put your money that you will need to spend soon?

• Savings Account

• Checking Account

Which are factors you should consider before taking out a loan?

• Interest Rate

• Length of Loan

• The Stock Market

• Monthly Payment Amount

Which of the following are ways you can invest your money?

• Take out a loan

• Stocks and Shares

• Bonds

• 401K

• Mutual Funds