Financial Literacy Quiz

Each month, Ava has $200.00 of income after she has paid for all of her necessities each month. In what way would Ava likely increase the value of her money the MOST if there were no risk involved in any option?

• by depositing her money in a bank

• by purchasing goods with her money

• by investing her money into the stock market

Ethan is considering different job offers. Which type of job is likely to offer the highest annual salary?

• a part-time, low-skill job

• a full-time, high-skill job

• a full-time, medium-skill job

Emma's family faced an unexpected medical emergency. What is one way credit can assist them in managing their finances?

• Credit can be used to pay for regular monthly expenses.

• Credit can be used to cover emergency medical bills.

• Credit is a form of income that increases a family’s wealth.

Mia has been saving money in her bank account for a few years. What is the term used to describe the money she has saved?

• Savings

• Budgets

• Assets

Something that you pay is called...

• income

• an expense

• savings

Priya bought a $4,000 couch. What is the impact and cost of using credit if she only paid the minimum monthly payment?

• Paying the minimum balance due increases the cost of goods over time.

• Paying the minimum balance due decreases the cost of goods over time.

• Using credit positively impacts the cost of goods over time regardless of how long the promise to pay is.

• Paying the minimum balance due has no impact on the cost of goods over time.

When Avery makes a __________, she is putting money INTO a bank account.

• Deposit

• Borrow

• Spend

• Withdraw

Anika and Mason are planning their budget. In the case of an unexpected emergency, which categories would they reduce?

• Emergency fund & groceries

• Entertainment & misc. shopping

• Cell phone & insurance

Michael is trying to manage his personal finances. Explain why a basic principle of effective personal money management is to live within one’s income.

• It helps to avoid debt and financial stress.

• It allows for more spending on luxury items.

• It encourages borrowing money from friends.

• It makes it easier to ignore budgeting.

What is the primary benefit of creating a monthly budget?

• It helps to track and control spending.

• It increases the amount of money you earn.

• It eliminates the need for savings.

• It guarantees financial success.