Financial Literacy and Getting a Job Test

What is budgeting?

• The process of creating a plan to manage and allocate financial resources.

• The process of maximizing profits by minimizing expenses.

• The process of tracking expenses after they have been incurred.

• The process of investing in high-risk financial ventures.

Why is it important to have a budget?

• To overspend and accumulate debt

• To have no control over finances

• To never achieve financial goals

• To track and control expenses, save money, and achieve financial goals.

Why is it important to save money?

• Saving money is important for financial security and achieving goals.

• Saving money is unnecessary and a waste of time.

• Saving money leads to overspending and financial instability.

• Saving money is only important for wealthy individuals.

What are some benefits of having a checking account?

• Easy access to funds, ability to make electronic payments, and opportunity to earn interest on balance.

• Limited access to funds, ability to make electronic payments, and no opportunity to earn interest on balance.

• Difficult access to funds, inability to make electronic payments, and no opportunity to earn interest on balance.

• Limited access to funds, inability to make electronic payments, and no opportunity to earn interest on balance.

Which of the following is considered an advantage to using a debit card to make purchases?

• Debit cards are convenient and easy to carry around.
• Purchases can be made quickly and easily.
• You can use many ATMs to get cash.
• All of the above.

To put money into an account.

• Deposit
• Withdraw
• Savings for a chicken
• Interest for a cow

The total amount of money you owe other people.

• APR

• Capital

• Debt

• Interest

A way for you to buy something now and pay for it later.

• Credit Report

• Credit

• Garnish

• APR

Which of the following is considered a need?

• a new car

• a clothes dryer

• a place to sleep

• lunch at a local restaurant

Any money you receive such as an allowance or

paycheck

• Income

• Emergency Fund

• Opportunity Cost

• Variable Expenses