Financial Literacy Quiz

Which of the following is considered a need rather than a want?

• Video game console

• Food

• Designer shoes

• Movie tickets

When creating a budget, it is important to:

• Spend more than you earn

• Balance your income with your expenses.

• Ignore tracking your expenses

• Borrow money to buy things you want

Which of the following is a type of investment?

• Loan

• Savings account

• Credit card

• Piggy bank

What is the consequence of not paying your bills on time?

• Improving your credit score

• Avoiding debt

• Incurring late fees

• Saving money

How can you avoid going into debt?

• Create a budget to see how much money you can spend.

• Buy items as soon as you see them

• Ignore price tags

• Always shop with friends

What is the best way to start saving money for the future?

• Spend all your money now

• Put away your income balance every month.

• Only save money from gifts

• Never save money

Which of the following is an example of a fixed expense?

• Groceries

• Entertainment

• Rent

• Clothing

What is the meaning of the term "interest" when discussing loans or savings accounts?

• Interest is the term used for the total amount of money in a savings account.
• Interest is the principal amount of a loan.
• Interest refers to the cost of borrowing money or the return on investment for savings.
• Interest is the process of repaying a loan.

Why is it important to compare prices before making a purchase?

• To spend more money

• To save money

• To buy the first item you see

• To impress others

What is the purpose of a savings or emergency fund?

• To buy luxury items

• To cover unexpected expenses

• To invest in the stock market

• To pay off debt quickly