Financial Stability Quiz

Once you start saving money, what should be your next step toward financial stability?

• Spending your savings

• Investing your savings

• Donating your savings

• Hiding your savings

Why is investing your savings important for your financial stability?

• It helps your money grow and keeps pace with inflation.

• It decreases your money over time.

• It makes your money disappear.

• It has no effect on your money.

Why is it important to track your income and expenses?

• To manage your money better and avoid overspending.

• To spend more money.

• To ignore your financial situation.

• To increase your debt.

How does tracking your finances help you make informed decisions about your lifestyle?

• It helps you see where your money goes and adjust spending accordingly.

• It makes you spend more money.

• It has no effect on your lifestyle.

• It makes you ignore your financial situation.

As you grow older, what factors might cause you to change your personal finance decisions?

• Changes in income, family responsibilities, or health needs.

• Winning a lottery.

• Ignoring your financial situation.

• Spending all your money.

What is the difference between a spending want and a spending need?

• A need is essential, like food or housing; a want is something extra, like a vacation or new clothes.

• A need is something you desire; a want is something you require.

• A need is a luxury item; a want is a basic necessity.

• A need is a short-term goal; a want is a long-term goal.

Why is it important to set financial goals for saving and paying off debt?

• It helps you stay focused and reduces financial stress.

• It allows you to spend more money on luxury items.

• It ensures you will never face any financial problems.

• It guarantees you will become wealthy.

What is one advantage of using a budget?

• It helps you control your spending and plan for savings.

• It increases your income.

• It reduces your taxes.

• It eliminates all financial risks.

What items are typically included in the Cost of Goods Sold (COGS)?

• Direct materials, direct labor, and manufacturing costs.

• Office rent, employee wages, and marketing costs.

• Office supplies, utilities, and insurance.

• Travel expenses, training costs, and legal fees.

What costs are considered part of Selling, General & Administrative (SG&A) expenses? Identify two correct options.

• Office rent

• Employee wages

• Manufacturing equipment

• Marketing costs