Financial Wellness Commission Quiz

What is a Budget?

• A Financial Reward

• A Spending Spree

• A Plan for Spending and Saving Money

• A Tax Refund

Which of the following is a characteristic of a good budget?

• All expenses are fixed

• It is rigid and cannot be adjusted

• It allows for flexibility and adjustments

• It focuses solely on wants, not needs

What is the 50/30/20 Rule of Thumb?

• 50% Needs, 30% Wants, 20% Savings & Debt Repayment

• 50% Wants, 30% Needs, 20% Savings & Debt Repayment

• 50% Savings & Debt Repayment, 30% Wants, 20% Needs

• 50% Needs, 30% Savings & Debt Repayment, 20% Wants

Define the term "emergency fund" in financial planning.

• Money set aside for daily expenses

• A fund used for luxury purchases

• Savings for unexpected expenses or emergencies

• A budget for vacation trips

Credit is your reputation as a _______.

Negative or inaccurate information on a person’s credit report will make it difficult for a person to

• travel

• retire

• get a home mortgage

• apply for life insurance

What is the difference between a subsidized and an unsubsidized student loan?

• Unsubsidized loans have a lower interest rate

• Unsubsidized loans are only for graduate students

• Subsidized loans have higher limits.

• The government pays the interest on subsidized loans while the student is in school.

Carol has saved $12,000 for her post-secondary education expenses by working part-time. Her plan is to start school next year and she needs all of the money she saved. Which of the following is the safest place for her savings for school?

• Mutual funds

• A bank savings account

• Locked in a safe at home

• Stocks

How old do you have to be to apply for a credit card?

• 18

• 21

• 16

• As long as you are employed

How much do you have to repay on a credit card every month to avoid a decrease in your credit score?

• Paying less than minimum payment

• Paying minimum payment

• Paying statement balance

• Paying available balance