Personal Finance Final Review

What is financial literacy?

• A set of goals for acquiring, saving, and spending money.

• The ability to understand basic topics related to finance, such as making, spending, and saving money.

• A plentiful supply of money or valuable goods.

• Having enough money for your basic needs and modest wants without work being a necessity.

Having a _____ helps you be in control of your fi nancial situation and achieve your goals.

• priority

• net worth

• financial independence

• financial plan

Planning to save enough money to go on a nice vacation is an example of a(n) _____.

• need

• investment

• financial goal

• wealth

Which of the following is an example of a short-term financial goal?

• I want to buy a house in ten years.

• I want to save as much money as possible.

• I want to buy a guitar in six months.

• I want to retire at 50.

Which of the following is an example of a long-term financial goal?

• I want to spend next week’s allowance at the mall.

• I want to save as much money as possible.

• I want to buy a guitar in six months.

• I want to save $4,000 before starting college in two years.

Which of the following is a need?

• Shelter

• Designer Clothes

• Television

• Smartphone

What is a want? 

• Something essential for living.

• An expense.

• Something important to an individual.

• Something someone would like to have but does not need to live.

A _____ is a value or goal that is given more importance than other values or goals.

• short-term goal

• long-term goal

• priority

• trade-off

What is wealth?

• The difference between what is owned and what is owed.

• A plentiful supply of money or valuable goods.

• The value of the option you give up when you make one choice over another.

• When a certain value or goal is given more importance than other values or goals.

Net worth is the difference between _____ and _____.

• assets, wealth

• priorities, assets

• assets, liabilities

• liabilities, wealth