Financial Literacy Intro Assessment

What is financial literacy?

• Understanding how to play sports

• The knowledge to make informed financial decisions

• Knowing the history of different currencies

• Learning how to write checks

Which of the following is NOT a key component of financial literacy?

• Budgeting

• Saving

• Investing

• Gossiping

How can being financially literate help an individual?

• It increases financial security

• It decreases the need for education

• It eliminates the need for savings

• It guarantees getting a job

What is a budget?

• A list of friends

• A plan for managing income and expenses

• A type of bank account

• A score for your financial habits

What does saving money mean?

• Spending all your income

• Keeping a portion of your income for future needs

• Donating all your income to charity

• Investing only in stocks

Why is it important to learn about investing?

• To make quick money without risks

• To grow your wealth over time

• To spend all your savings

• To avoid financial responsibility

Which of these outcomes become more likely for someone with strong personal finance skills? Check all that apply.

• A person can avoid opportunity cost.

• A person can be more prepared to meet basic needs.

• A person can avoid financial decision-making

• A person can spend money thoughtfully to accumulate assets.

• A person can spend wisely to avoid financial problems.

A single person will have less income tax withheld than a married employee.

• True

• False

What is a credit score?

• A score for determining an athlete’s performance

• A number that shows how likely you are to repay borrowed money

• A type of bank account number
  
  

• A score given to a house before it is sold

Which of the following is a type of debt?

• Grocery receipt

• Credit card balance

• Birthday gift

• Bank savings