Money Management

It's important to save for the following reasons:

• To meet long term and short term goals

• To build wealth

• To protect against unexpected crisis (emergency, loss of job)

• All of the above

Reasons for making a budget include

• To have a spending plan

• To have a savings plan

• To keep track of debits and credits

• All of the above

My cousin wanted to borrow $300 from me. I loaned him the money but I told him that he would have to pay me back $330. The money that was paid back to me on top of the loan is known as_________. 

• credit 
• interest 
• savings 
• debt 

Tony borrowed money from the bank to buy a new house. A year later he lost his job and has started to not be able to make his house payments. This problem is known as what? 

• credit 
• budget 
• debt 
• interest 

I have been setting aside $100 a month for my children to have money to go to college. This idea is known as what? 

• savings 
• credit 
• income 
• debt 

Your forgot to pay $100 on your credit card bill this month, your next month's bill is going to be $112. How much interest did they charge for missing your payment? 

• 112%
• 2%
• 12%
• 22%

Which of the following is not true about the difference between credit cards and debit cards? 

• purchases made with a debit card come directly out of your bank account
• you must pay off your credit card bill monthly or there will be penalties 
• you must have a bank/checking account to use a debit card 
• credit cards use money from your savings account 

When you buy something using this method you have to pay it back. Sometimes it requires interest. What is this?

• Borrowing

• Income

• Investing

• Credit

What is the difference between a debit card and a credit card?

• A debit card takes money immediately from a bank account. With a credit card you pay later. (plus interest)

• A credit card takes money immediately from a bank account. With a debit card you pay later.

• A credit card takes money immediately from your savings fund. With a debit card you are charged interest.

• A debit card takes money immediately from your savings fund. With a debit card you are charged interest. (plus interest)

Creating a budget and following it can help you stay out of debt.

• True
• False