Personal Finance

The cost of borrowed money, usually expressed as a percentage.

• interest
• savings plan
• scarce
• purchase

401(k), IRA, and Roth IRA are all examples of a __________ account.

• Retirement
• College Savings
• Low Interest
• Stock

Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or the addition of interest). 

• Savings
• Profit
• Budgeting
• Credit

Which of the following BEST describes income?

• Money received from a parent to pay for ice cream at lunch.

• Money spent on a pair of new Nike Shoes.

• Money donated to a charity.

• Money received for completing your weekly chores.

Which of the following is a benefit of having a personal savings plan?

• Personal savings plans let people spend more time doing activities they enjoy.

• People who save money are able to spend more money in the future and pay for unexpected expenses.

• People who save money are able to spend a lot of money right now.

• Personal savings plans help people have an unbalanced budget.

A budget helps people make responsible economic decisions.

• True

• False

Check all statements that are true about a balanced budget.

• A balanced budget is when you have more expense than income.

• A balanced budget is when you have the same number of ten dollar bills as one dollar bills.

• A balanced budget is when income is equal to or greater than expenses.

• A balanced budget helps you make responsible spending and saving decisions.

Which of the following should Sally consider when planning her monthly personal budget?

• How many pencils she will trade with another student.

• How many beads she will buy at the craft store.

• How many books she will read at the public library.

• How much tv she will watch this week

A balanced budget is when expenses are greater than income.

• True

• False

A balanced budget is when income is equal to or greater than expenses.

• True

• False