Personal Finance Quiz

John decides to use his free time to learn guitar instead of working part-time at a cafe. The job at the cafe represents his

• personal interest

• opportunity cost

• leisure activity

• financial gain

Which of the following is typically considered a 'want' rather than a 'need' when creating a budget?

• clothing

• education

• healthcare

• movies

Sarah has been working part-time at the community library. After taxes and other deductions, her monthly paycheck amounts to $450. This amount is referred to as

• Gross Domestic Income

• Net Average Income

• Gross Yearly Income

• Net Monthly Income

What term is used to describe the earnings from lending money or capital?

• dividend

• interest

• profit

• return

What is the term for mandatory payments made by citizens to their government?

• fees

• taxes

• donations

• loans

How should you allocate your income according to the 50-30-20 budget rule?

• 50% on needs, 30% on wants, and 20% on savings.

• 50% on savings, 30% on needs, and 20% on wants.

• 30% on needs, 20% on wants, and 50% on savings.

• None of these allocations are correct.

What is a primary advantage of using a debit card instead of a credit card?

• Debit cards allow you to borrow money which you can pay back later.

• Debit cards help in building a credit score if used frequently.

• Debit cards help to control spending by limiting purchases to the available balance in your bank account.

• Debit cards offer rewards and cashback on transactions.

The amount of money on your paycheck before Uncle Sam (the US government) taxes you is called...

• savings

• yearly income

• lottery

• gross income

What is the recommended minimum percentage of income to save each month according to the PYF principle?

• 5%-50%

• 10%-20%

• 15%-25%

• 20%-30%

Which of the following best describes a long-term goal compared to a short-term goal?

• A long-term goal is achieved quickly, while a short-term goal takes several years to achieve.

• A long-term goal requires more time to accomplish, often extending beyond one year, whereas a short-term goal is typically achieved within a year.

• A long-term goal is less important than a short-term goal.

• A long-term goal is cheaper to achieve than a short-term goal.