Personal Finance Vocab Quiz

Match the following vocab words to their definition.

• Savings Account

• A plan that helps you decide how to spend and save your money so you don’t run out before your next paycheck. It’s like a map for your money.

• Variable Expense

• A cost that changes from month to month, like how much you spend on groceries, gas, or eating out.

• Budget

• A cost that stays the same every month, like rent or a subscription service. It’s predictable and doesn’t change much.

• Emergecy Fund

• Money you save and keep aside for unexpected expenses, like a car repair or a medical bill, so you don’t have to borrow or go into debt

• Fixed Expense

• A type of bank account where you can store money safely and earn a little extra money (interest) for keeping it there.

Match the following

• Credit Score

• The total amount of money you earn before taxes and deductions. It’s your "big paycheck number" before anything is taken out.

• Compound Interest

• A number that shows how responsible you are with borrowing money. A higher score means lenders trust you more to pay back what you borrow.

• Net Income

• Interest that builds on itself over time. You earn interest not just on the money you save, but also on the interest you’ve already earned. It helps your money grow faster.

• Interest

• The small bonus money a bank gives you as a reward for keeping your money in a savings account. The more money you save, the more interest you earn.

• Gross Income

• The amount of money you actually take home after taxes and other deductions are taken out of your paycheck. It’s the money you can spend or save.

Match the following

• Overdraft Fee

• A detailed record of your borrowing history, including loans, credit cards, and payments. It shows how well you’ve handled money and debt in the past.

• Credit Report

• A type of bank account used for everyday spending. You can use it to pay bills, write checks, or use a debit card to make purchases.

• Credit Limit

• The smallest amount of money you must pay on your credit card bill each month to avoid late fees. Paying only the minimum can cost more over time because of added interest.

• Checking Account

• • The maximum amount of money you’re allowed to borrow on a credit card. It’s like a spending cap set by the credit card company.

• Minimum Payment

• A penalty the bank charges when you spend more money than you have in your checking account. It’s like a fine for going into the negatives.

Match the following

• ATM Fee

• A share in a company that you can buy. When you own stock, you own a small piece of that company, and your money can grow if the company does well.

• Stock

• A retirement savings plan offered by some employers. You put money into it from your paycheck, and sometimes your employer adds money too. It grows over time for when you stop working.

• Direct Deposit

• A summary of all the money going in and out of your bank account during a specific time, like deposits, withdrawals, and fees. It helps you track your spending.

• 401K

• When your paycheck or other payments are sent straight into your bank account electronically, so you don’t have to deposit a paper check.

• Bank Statement

• A charge you might have to pay for using an ATM that doesn’t belong to your bank. It’s like paying for the convenience of accessing your money.

Match the following

• Income Tax

• A loan you give to a company or the government. They promise to pay you back later with a little extra money (interest) as a thank-you for lending them the money.

• Bond

• An expense that reduces how much of your income the government can tax. For example, donating to charity might lower your taxes.

• IRA

• A special savings account you set up on your own to save for retirement. It lets your money grow with tax benefits, which means the government gives you a break on taxes.

• Risk vs Reward

• Money the government takes out of your earnings to pay for things like roads, schools, and public services. The more you earn, the more you might pay.

• Tax Deduction

• The idea that taking bigger risks with your money can lead to bigger rewards (like making more money), but it also means you could lose more. Smaller risks usually mean smaller rewards but are safer.

Match the following

• Warranty

• A promise from a company that they’ll repair or replace a product if something goes wrong within a certain amount of time. It’s like a guarantee for your purchase.

• Scam

• A form you fill out when you start a job to tell your employer how much tax to take out of your paycheck based on your financial situation.

• W-2 Form

• A dishonest plan to trick people into giving away money or personal information. Scams often seem too good to be true.

• W-4 Form

• A form your employer gives you that shows how much money you earned and how much tax was taken out of your paycheck. You use it to file your taxes.

• Fraud

• When someone lies or tricks others to steal money or get something unfairly. It’s illegal and often involves fake information.

Match the following

• Supply and Demand

• The value of the next best thing you give up when you make a choice. For example, if you spend your money on concert tickets, the opportunity cost might be missing out on saving that money or buying something else.

• Opportunity Cost

• When prices for things like food, gas, and housing go up over time, which makes your money buy less than it used to.

• Inflation

• The balance between how much of something is available (supply) and how many people want it (demand). When demand is high and supply is low, prices go up. When supply is high and demand is low, prices go down.