Money Skills for Teens

What is the primary purpose of creating a budget?

• To track your spending habits

• To ensure you spend more than you earn

• To avoid paying taxes

• To increase your debt

Which of the following is a common method for saving money?

• Spending all your income

• Using a high-interest savings account

• Investing in high-risk stocks only

• Ignoring your financial goals

What is a mutual fund?

• A type of savings account with a fixed interest rate

• A pool of money collected from many investors to invest in securities

• A loan given to a friend

• A type of credit card

Which of the following is a good practice for managing credit cards?

• Maxing out your credit limit

• Paying only the minimum payment each month

• Paying off the full balance each month

• Ignoring the credit card statements

What is the first step in setting financial goals?

• Spending all your money

• Identifying your financial priorities

• Ignoring your income

• Taking out a loan

What is the purpose of taxes?

• To reduce the national debt

• To fund public services and infrastructure

• To increase personal savings

• To discourage spending

Which of the following is a fixed expense?

• Groceries

• Rent

• Entertainment

• Dining out

What is an emergency fund?

• Money set aside for unexpected expenses

• Money used for daily expenses

• Money invested in stocks

• Money borrowed from friends

Which investment option typically has the lowest risk?

• Stocks

• Bonds

• Real estate

• Cryptocurrencies

What is the benefit of having a good credit score?

• Higher interest rates on loans

• Easier approval for loans and credit cards

• More debt

• Higher taxes