Financial Literacy Quiz

Which budgeting method involves the use of placing money in separate packets to meet particular expenses?

• Envelope

• Savings

• Investment

• Credit

Ideally, what should more than one member of the family contribute to for a better financial position?

• Income

• Savings

• Budget

• Debt

Chelsea purchased her monthly grocery requirements instead of soccer game tickets for the championship match she wanted to see. What has Chelsea chosen to satisfy over her wants?

• Needs

• Desires

• Luxuries

• Entertainment

Which of the following is an example of a luxury expense?

• Staple foods

• Tuition and fees

• Lamborghini

• Vacation

Which part of the passage indicates that Rolid is preparing a budget to plan his finances?

• Rolid is a 25-year-old man who is very social by nature.

• He works for a financial services company.

• Every month, he puts $500 in an envelope to use as spending money.

• He plans to retire by the age of 40.

Which of the following expenses is most likely categorized as an essential expense?

• Lamborghini

• Lavish wedding

• Tuition and fees

• Vacation

What does Rolid do to ensure he only spends when he has enough money?

• He avoids outings with friends.

• He puts $500 in an envelope every month.

• He plans to retire by the age of 40.

• He loves his current job and lifestyle.

What is Rolid's plan regarding his retirement?

• He plans to retire by the age of 50.

• He plans to retire by the age of 40.

• He has no plans to retire.

• He plans to retire as soon as possible.

What does Rolid avoid to manage his finances better?

• Buying a Lamborghini

• Spending on staple foods

• Outings with friends

• Paying tuition and fees

Which of the following is a sign of Rolid's financial discipline?

• He loves his current job and lifestyle.

• He plans to retire by the age of 40.

• He puts $500 in an envelope every month.

• He has no plans for marriage anytime soon.