Financial Literacy Quiz

What is the definition of financial literacy?

• Speaking multiple languages

• Playing a musical instrument

• Understanding how to manage your finances

• Knowing how to cook

Why is financial literacy important?

• To learn how to dance

• To learn how to swim

• To make thoughtful decisions about money

• To become a professional athlete

What is the purpose of budgeting?

• To travel the world

• To become a movie star

• To become a chef

• To fix bad spending habits

What is an investment?

• A type of clothing

• A form of transportation

• An asset acquired to generate income

• A type of food

What is the benefit of saving?

• To become a professional gamer

• To become a fashion designer

• To protect against financial emergencies

• To buy expensive jewelry

What is a budget?

• A type of car

• A spending plan to decide how to use money

• A type of computer

• A type of pet

What should one understand when choosing an investment?

• Return on investment, risk factor, tax consideration

• How to bake a cake

• How to play a sport

• How to write a book

What is the purpose of a savings account?

• To buy a new phone

• To save for retirement

• To become a painter

• To travel to space

What does financial literacy help with?

• Learning how to fly a plane

• Learning how to swim

• Making informed decisions about money

• Becoming a professional dancer

What is the importance of having a budget?

• To become a scientist

• To become a chef

• To become a musician

• To keep spending in check and ensure savings are on track