FinLit Final

The money an individual spends each month is their _______________.

• income
• earnings
• expenses
• savings

What is income?

• Money spent
• Money earned
• Money saved
• Money invested

What is an emergency fund?

• A savings account set aside for unexpected situations.

• A way to invest for retirement.

• Something most people don't need, because emergencies are rare.

• An investment account that can grow over time.

A person should have an emergency savings account with at LEAST

• 3 - 6 months of living expenses

• 12 - 15 months of living expenses

• the person's monthly salary.

• triple the amount of the person's annual salary.

What is insurance?

• A service purchased to protect assets and income against financial loss.

• A type of savings account where you put aside money for emergencies.

• A type of investment account where you can buy shares of stock.

• A kind of taxes charged by the government.

the amount paid out of pocket by the policy holder before an insurance provider will pay any expenses.

• premium

• dependent

• copay

• Deductible

What is the amount of money you earn when you have a savings account?

• principal
• interest
• premium
• savings

How does investing in the stock market differ from putting money in a savings account at a bank?

• You have the opportunity to make more money when you invest compared to what you can earn putting your money in a savings account.

• You have less of a chance of losing money when you invest compared with saving.

• Investing is less risky than saving

• If you want to make a down payment on a car loan within the next 6 months, investing is the best option since you will earn more than a savings account.

The process of self-investment through education, experience, and volunteering

• Well-being

• Standard of Living

• Human Capital

• Transferable skills

State of being happy, healthy, and prosperous

• Standard of living

• Transferable skills

• Well-being

• Human Capital