Personal Finance Unit 1 - Money Basics

What are some sources of cash?

Which government agency collects taxes in the United States?

• The Bureau of Engraving

• The Internal Revenue Service (IRS)

• The U.S. Department of the Interior

• The U.S. Mint

Who makes paper money in the United States?

• The Bureau of Engraving

• The Internal Revenue Service (IRS)

• The U.S. Department of the Interior

• The U.S. Mint

What does it mean to pay yourself first?

How many months of expenses should you have in savings for emergencies or unexpected events?

• You don't need savings.

• 12-18 months

• 1-2 months

• 3-6 months

Gas, electricity, groceries, and medical bills are all examples of ______ expenses.

What do you occasionally need to adjust when you are planning your finances?

• Fixed expenses

• Variable expenses

• Budget

• Your income

Give an example of a long-term goal (remember it needs to be SMART)

A trade-off is when you give something up in order to get something else in return. An example might be having dinner with your family and going out with your friends later than you would like. It's a compromise.

• True

• False

A monetary incentive is a benefit that encourages people to behave in a certain way.

Example: Buy one, get one free

• True

• False