Personal Finance Vocabulary Assessment

What is the definition of wealth?

• A measurement of your assets minus your liabilities

• Total earnings before any deductions are taken

• Money received from work

• The cost for one item or measurement

What is the difference between wage and salary?

• Wage is money received from work, while salary is a set amount paid for every hour worked

• Wage is a set amount paid for every hour worked, while salary is a fixed amount paid over a period of time

• Wage is a budgeting method, while salary is a type of insurance

• Wage is a fixed amount paid over a period of time, while salary is the amount paid for every hour worked

What is a zero-based budget?

• A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment

• A budgeting method where every anticipated earning is assigned a role to be spent, saved, or invested somewhere

• A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes

• The amount of money needed to sustain a certain level of living

What is the definition of cost of living?

• The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare

• A type of auto financing that allows you to 'rent' a car from a dealership

• The basic services your home, apartment, or business needs to keep it comfortable and functioning properly

• A form of property insurance that covers losses to personal property

What is the definition of gross pay?

• The cost for one item or measurement that allows it to be easily compared to other similar products

• A cost that can be expected at regular intervals and that remains the same amount

• Total earnings before any deductions are taken

• Total earnings after payroll taxes and other deductions have been taken out

What is the difference between gross pay and net pay?

• The cost for one item or measurement that allows it to be easily compared to other similar products

• A cost that can be expected at regular intervals and that remains the same amount

• Gross pay is the total earnings before any deductions are taken

  and net pay is your take home pay.

• Net pay is typically higher than gross pay.

What is the definition of a freelancer?

• A type of auto financing that allows you to 'rent' a car from a dealership

• A portion of the total cost of an item that must be paid at the time of purchase

• A labor market where the majority of people have short-term jobs or gigs such as freelancing and temp jobs

• An individual who earns money on a per-job or per-task basis, usually for short-term work

What is the definition of a residential lease?

• A form of property insurance that covers losses to personal property

• A contract between a tenant and a landlord providing the terms and costs for renting the property

• A type of auto financing that allows you to 'rent' a car from a dealership

• The basic services your home, apartment, or business needs to keep it comfortable and functioning properly

What is the definition of a surplus?

• When your income exceeds your expenses and you have money leftover

• A cost that appears irregularly or that changes in amount

• When your expenses exceed your income

• A set amount you are paid for every hour that you work

What is the definition of a variable expense?

• The amount of money needed to sustain a certain level of living

• A cost that can be expected at regular intervals and that remains the same amount

• A cost that appears irregularly or that changes in amount

• A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes