Financial Literacy Make-Up Assignment

When developing a savings plan, what should you remember?

• wait until I'm older

• pay myself first

• pay off debt first

• invest in high risk

When is an item considered an asset?

• While you are making monthly payments on time

• Converting an asset into cash

• When cash is used for emergencies

• When it is fully paid off and can be sold for cash

Which of the following are considered variable expenses? (You can choose more than one.)

• Magazine subscription

• Electricity

• Insurance coverage

• Clothing

• Recreation and vacation

Which of the following are considered fixed expenses? (You can choose more than one.)

• Cable subscription

• Electricity

• Insurance coverage

• Rent

• Medical fees

This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.

• compound interest
• emergency fund
• APR
• debt

What are stocks?

• sharing something

• An ownership share in a company

• A graph with pointy arrows that are red and green

What is investment?

• money spent on something with the goal of making more money

• money spent on other things

• money spent on saved products

Budgeting is crucial for financial success

• somewhat

• 
• 

According to the 50/20/30 rule what three categories is your after tax income allocated to?

• needs, savings and wants

• housing, investments and vacations

• utilities, discretionary spending, savings

• fixed expenses, variable expenses, discretionary expenses

What two things does a budget compare?

• Income and Expenses
• Savings and Interest
• Income and Investments
• Expenses and Expenditures