Financial Literacy Quiz for Teens

Which of the following is a “want” instead of a “need”?

• Rent

• Restaurant bill

• Utility bill

• Groceries

A budget is a plan for spending and saving your income.

• True

• False

Which of the following is NOT a balanced budget, with a monthly income of $1,000

• $600 for bills, $300 for savings, $100 for spending

• $600 for bills, $250 for savings, $150 for spending

• $725 for bills, $50 for savings, $250 for spending

• $450 for bills, $400 for savings, $150 for spending

An entrepreneur is a person who

• invests money in a company,

• saves money for retirement.

• starts a new business.

If an entrepreneur sells $350,000 in products in one year, and the costs for the year were $175,000, what is the profit?

• $75,000

• $100,000

• $175,000

• $275,000

"Interest" is money that …

• A bank charges when you borrow money in a loan

• Can be calculated by a percentage rate

• A bank pays when you keep money in a savings account

• All of the above

Which of the following is NOT true? A credit card ...

• Uses borrowed money

• Uses money from your savings account

• Charges interest on unpaid balances

• May have other fees it charges

Which of the following is NOT an example of a variable expense in a budget?

• Groceries

• Transport

• A $100 phone bill

• Clothes

Salary deductions go toward which type of tax?

• Sales tax

• Income tax

• Property tax

• All of the above

Money from taxes is used to pay for services that are provided by the government.

• True

• False