Personal Finance Quiz

Which of the following best defines "net income"?

• A) Total income before taxes

• B) Income after taxes and deductions

• C) Amount of money saved monthly

• D) Gross income

What does PYF stand for in personal finance?

• A) Plan Your Finances

• B) Pay Yourself First

• C) Prepare Your Future

• D) Pay Yearly Fee

What does FICA stand for?

• A) Federal Income Calculation Act

• B) Financial Insurance Contribution Act

• C) Federal Insurance Contributions Act

• D) Financial Investment Collection Act

Which of these is a mandatory deduction from a paycheck?

• A) Health insurance

• B) State tax

• C) Mortgage payment

• D) Retirement savings

What is a career cluster?

• A) A plan to help you manage finances

• B) A group of occupations with similar skills

• C) A savings strategy for retirement

• D) A budgeting technique

Which of the following is an example of discretionary spending?

• A) Mortgage payment

• B) Credit card payment

• C) Dining out

• D) Income tax

Which type of goal is saving for a vacation next year?

• A) Short-term goal

• B) Long-term goal

• C) Mandatory goal

• D) Discretionary goal

What does a credit score represent?

• A) Your financial worth

• B) Your likelihood to repay a loan

• C) Your monthly income

• D) The total of your outstanding debt

Why is it important to “Pay Yourself First”?

• To maximize discretionary spending

• To ensure you have money for future needs

• To pay off debt before spending

• To calculate net income

Which of the following would be classified as a long-term savings goal?

• Buying a coffee every morning

• Building a retirement fund

• Buying groceries for the week

• Saving for next month’s phone bill