Personal Finance Review

Which of the following is an advantage of saving money each month?

• Savings gives you a better interest rate on credit card purchases.

• Savings increase your monthly work income.

• Savings allow individual to pay for an unexpected expense without going into debt.

• Savings create the opportunity to build your credit score.

What is the MAIN purpose of investing?

• to build credit

• to create an emergency fund

• to purchase a phone

• to build wealth

Which statement about the relationship between income and spending is correct?

• You should balance income and spending when creating a budget.

• Income should always be spent each month.

• Spending more money each month will increase income.

• Spending more money than income each month will not create problems.

Lory is a bank manager. Every two weeks she receives a paycheck from the bank.

What do Lory’s paychecks represent?

• The income received from work.

• The taxes received from work.

• The credit received from work.

• The interest received from work.

Which item could be classified as a NEED?

• Food

• A boat

• Movie ticket

• An xbox

A budget is... (select all that apply)

• Your credit card bill at the end of the month.

• An estimate of income/expenses (spending) for a set period of time.

• The price of your insurance for the year.

• A tool to help manage your money.

How does a credit card work?

• You load the card with your own money.

• It is unlimited and you don't have to pay it back.

• It is loaned/borrowed money you pay in one large bill at the end of each month.

Which of the following best describes income?

• Money given to a charity that helps others.

• Money received for completing a chore or task.

• Money received from a parent to pay for lunch.

• Money spent on new clothes and shoes for school.

What is a budget?

• a group that helps the community

• a safe place where people keep money

• a center where you can donate things

• a plan for spending and saving money

Why is it important to keep a budget?

• Budgets make sure you do not spend more money than you can afford.

• Budgets can help you save for large purchases.

• Budgets show you how much money you get and spend.

• All of the above.