Financial Literacy Quiz

What is interest?

• Money paid to friends

• A fee for using a bank account

• Money earned on savings or paid on loans

• A type of investment

What is credit?

• A form of money

• A loan that you must pay back

• A way to save money

• A type of bank account

What does it mean to invest?

• To spend money on entertainment

• To put money into something with the expectation of making a profit

• To save money in a piggy bank

• To donate money to charity

What is the purpose of a savings account?

• To spend money quickly

• To save money and earn interest

• To borrow money from the bank

• To keep cash at home

Which of the following is a benefit of budgeting?

• It restricts spending

• It helps you track your income and expenses

• It guarantees financial freedom

• It allows you to avoid all debts

What is a financial goal?

• A plan to spend more money

• A specific target to achieve financially

• A way to spend money

• A method to avoid debt

What percentage of your income is recommended to put towards necessary expenses?

• 10%

• 20%

• 30%

• 50%

Give 2 examples of responsible spending habits.

• Creating a budget and sticking to it

• Impulse buying

• Saving a portion of your income

• Spending all your money on luxury items

Explain the difference between a financial want and a need.

• A need is essential for survival, while a want is something desired but not necessary.

• A want is essential for survival, while a need is something desired but not necessary.

• Both wants and needs are essential for survival.

• Neither wants nor needs are essential for survival.

What was the most useful piece of information you learned in this unit?

• The importance of data privacy

• How to create effective presentations

• The basics of machine learning

• Time management techniques