Financial Literacy Final

An expense that changes in price and frequency each month, like food or gas is know as a(n)...

• Variable Expense
• Fixed Expense
• Existing Expense
• Changing Expense

An expense that stays the same each month, such as a rent, phone or car payment is know as a(n)...

• Variable Expense
• Fixed Expense
• Existing Expense
• Changing Expense

I make $60,000 a year before taxes and deductions are taken out of my paycheck. This is my...

• Gross Income
• Total Income
• Fixed Income
• Net Income

I make $54,000 a year after all of my taxes and deductions are taken from my paycheck. This is my...

• Net Income
• Gross Income
• Variable Income
• Total Income

What type of income should I use when making my budget?

• Net Income
• Gross Income
• Fixed Income
• Variable Income

How does your money grow once you put it in a savings account?

• The bank gives you more money over time.
• The money fairy appears and adds more every year.
• Your mom puts money in your account every birthday.
• It doesn’t grow. The amount stays the same until you add it yourself.

Which of these is not an example of income?

• Money you borrowed from your friend.
• Money you get for an allowance.
• Money you earn from your lemonade stand.
• Money your grandma gave you for your birthday.

Why would someone create a budget?

• To keep track of money earned and money spent.
• To find out how much money they will earn.
• To keep track of how much money is in their savings account.
• None of these are correct.

The 50/30/20 rule states that your after-tax income should be divided this way:

• 50% Needs, 30% Wants, 20% Savings
• 50% Wants, 30% Needs, 20% Savings
• 50% Wants, 30% Savings, 20% Needs
• 50% Needs, 30% Savings, 20% Wants

One of the great secrets to saving is finding ways to make it...

• Automatic
• Hurt
• Difficult
• Comprehensive