Personal Financial Literacy Concepts

This video tutorial covers personal financial literacy topics for seventh graders, including taxes, incentives, interest, net worth, and budgeting. It provides detailed explanations and examples of calculating sales tax and simple interest, as well as understanding assets and liabilities to determine net worth. The tutorial aims to prepare students for financial literacy questions on standardized tests.

What is the primary focus of the last unit in seventh grade math?

• Geometry

• Personal Financial Literacy

• Statistics

• Algebra

Which of the following is an example of an incentive?

• Principal

• Sales tax

• Income tax

• Rebate

What is the main difference between simple and compound interest?

• Simple interest is always higher than compound interest.

• Simple interest changes every year.

• Simple interest is calculated on the principal only, while compound interest is calculated on the principal and accumulated interest.

• Compound interest is only used for loans.

How do you calculate net worth?

• Multiply assets by liabilities

• Add all liabilities and assets

• Subtract liabilities from assets

• Divide assets by liabilities

What is the first step in calculating sales tax?

• Subtract the sales tax from the price

• Convert the sales tax rate to a decimal

• Multiply the price by the sales tax rate

• Add the sales tax to the price

If the sales tax rate is 7% and an item costs $100, what is the sales tax amount?

• $10

• $0.70

• $70

• $7

What does the 'P' in the simple interest formula I = PRT stand for?

• Profit

• Principal

• Percentage

• Payment

If you deposit $500 at a 5% simple interest rate for 2 years, how much interest will you earn?

• $50

• $25

• $10

• $5

Which of the following is considered an asset?

• Student loan

• Jewelry

• Mortgage

• Credit card debt

What is the result if your liabilities exceed your assets?

• Zero net worth

• Negative net worth

• Infinite net worth

• Positive net worth