Financial Literacy Review

What term means to buy something that will help money grow?

• buy

• save

• invest

• spend

What do budgets help people do?

• buy all of their wants

• spend too much money

• be careless with money

• make responsible choices

What does everyone choose between everyday?

• needs and wants

• needs and expenses

• budget and wants

• expenses and budget

What is the primary purpose of a savings account?

• To earn interest on deposited money

• To spend money on luxury items

• To avoid paying taxes

• To hide money from the government

Which of the following is considered a fixed expense?

• Groceries

• Rent

• Entertainment

• Clothing

What is a budget?

• A plan for spending and saving money

• A type of bank account

• A loan from a bank

• A financial emergency

What does the term 'interest rate' refer to?

• The cost of borrowing money

• The price of a product

• The value of a currency

• The amount of money in a savings account

Which of the following is a benefit of having good credit?

• Lower interest rates on loans

• Higher taxes

• More spending money

• Increased debt

What is the role of insurance in financial planning?

• To protect against financial loss

• To increase spending

• To avoid paying taxes

• To earn interest

What is the difference between a debit card and a credit card?

• A debit card uses your own money, a credit card borrows money

• A debit card is for online purchases only

• A credit card is linked to a savings account

• A debit card earns rewards points