Financial Literacy Pretest for Students

What is the primary purpose of creating a budget?

• To track your spending habits

• To ensure you spend all your money

• To save money for future expenses

• To avoid paying taxes

Which of the following is considered a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

What is the term for the amount of money you owe to others?

• Income

• Debt

• Savings

• Investment

Which of the following is an example of good debt?

• Credit card debt

• Payday loans

• Student loans

• Gambling debt

What is the purpose of a credit score?

• To determine your income level

• To measure your financial responsibility

• To calculate your taxes

• To track your spending

Which form is used to file federal income taxes in the United States?

• W-2

• 1040

• 1099

• W-4

What is the main purpose of paying taxes?

• To save money for retirement

• To fund government services

• To increase personal wealth

• To pay off personal debt

Which type of insurance is required by law for drivers in most states?

• Health insurance

• Life insurance

• Auto insurance

• Homeowners insurance

What does health insurance typically cover?

• Car repairs

• Medical expenses

• Home maintenance

• Travel costs

What is the difference between gross pay and net pay?

• Gross pay is after taxes; net pay is before taxes

• Gross pay is before taxes; net pay is after taxes

• Gross pay includes bonuses; net pay does not

• Gross pay is your savings; net pay is your expenses