Personal Finance Vocab Review

What is a budget?

• A plan for how money will not be used

• The amount you spend

• A plan for how money will be used

• The amount you save

What is income?

• The amount you spend

• The amount you don't save

• The money you save

• The money you take in

What is a variable expense?

• The amount of money you spend.

• An expense that costs different amounts every month.

• The amount of money you save.

• The variable in math.

What is interest?

• Money paid regularly by the bank on the account.

• Money paid regularly to the bank, as a fine.

• Money paid by other people.

• Money paid in the U.S.

For most people, which of the following is the best example of a want?

• Rent

• A warm coat

• Transportation

• Ice cream

For most people, which of the following is the best example of a need?

• Designer jeans

• Rent in a safe neighborhood

• A nice car

• Another winter jacket

Jack wants a new phone, but he needs a new textbook for class. What should he do?

• Buy the textbook and put away money for the phone.

• Buy the textbook and tell his brother to buy him the phone.

• Buy the phone and put away money for the textbook.

• Buy the phone and use his friend's textbook for a while.

What is debt?

• Taxes you pay when you buy something.

• Money you make from working at a job.

• Money you make from the government.

• Money you have borrowed and need to pay back.

What is insurance?

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

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

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

• A kind of taxes charged by the government.

A contract between the insurance company and the insured that states the exact terms of the contract is called:

• policy

• premium

• insurance

• risk