Financial Literacy Quiz

What is a need?

• Something you must have to survive

• Something you can borrow

• Something you can live without

• Something that would be fun to have

What is a want?

• Something you must have to survive

• Something that would be fun to have

• Something you can live without

• Something you can borrow

What is a budget?

• A plan for managing your money

• Money you set aside for the future

• A loan from a bank

• Money you borrow from someone else

What is the purpose of creating a budget?

• To help you live within your means

• To help you go into debt

• To help you spend money you don't have

• To help you save money

What is a debt?

• Money you borrow from someone else

• Money you set aside for the future

• Money you spend on immediate needs and wants

• Money you earn while your money sits in the bank

What is saving?

• Paying back a loan with interest

• Borrowing money from someone else

• Earning money while your money sits in the bank

• Setting money aside for the future

What is a loan?

• Setting money aside for the future

• Earning money while your money sits in the bank

• Borrowing money from someone else

• Paying back a loan with interest

What is a savings account?

• A place to pay bills and other immediate needs

• A small hard plastic card issued by a credit card company

• A place to put money you intend on saving for a while

• A type of loan from a bank

What is a checking account used for?

• To save money for the future

• To pay bills and other immediate needs

• To borrow money from the bank

• To earn interest on your money

What is the difference between a credit card and a debit card?

• Credit cards are issued by a credit card company, while debit cards are issued by a bank

• Credit cards earn interest, while debit cards do not

• Credit cards are used to pay for things with money you already have, while debit cards are borrowed money

• Credit cards are linked to your bank account, while debit cards are a type of loan