Personal Finance-Lesson 1

Financial Literacy is:

• The ability to use knowledge and skills to make effective and informed money management decisions

• Knowing all of the different forms of currency used throughout the world.

• Being well read.

• the active process of managing your resources to maintain a positive relationship with your money

Which of the following is NOT a basic principle of personal finance?

• Spend less than you earn.

• Always have the nicest and newest clothes.

• Make your money work for you.

• Protect your money.

Which of the following is not a category of financial decision making?

• Saving

• Spending

• Spontaneous purchases

• Investing

Which of the following is the FIRST part of financial decision making?

• Identify alternatives

• Decide

• Consider the consequences

• Evaluate the results

• Identify the problem.

Check ALL of the factors that influence financial decision making:

• Age

• Budget

• Habits

• Your eye color

• Time

Your values influence your financial decision making

• True

• False

Which of the following is NOT a need

• Video Games

• Food

• Water

• Shelter

All of the following ARE wants, except:

• Electronics

• A new haircut

• Food

• Video Games

Expenses are: is money that is received, often times on a regular basis for work or from investments

• True

• False

Income: is money that is spent.

• True

• False