Financial Literacy Review

Which of the following helps make it easier to save?

• Having a goal in mind.

• Putting away a little money at a time.

• Buying the cheapest version of an item.

• Creating a budget and plan.

If I spend $80 on new shoes, what is a possible opportunity cost?

• I will have to wear those shoes every day.

• What is opportunity cost??

• I won't have $80 to spend on something else.

• I should have compared prices.

The original amount of money invested in an account is ____________.

• always an even number

• gross income

• the principal

• a personal question

To keep money so it can be used later

• spend

• borrow

• deposit

• save

To use money to buy a good or service

• borrow

• lend

• save

• spend

Which of the following is a benefit of creating a personal budget?

• A) It helps track expenses and savings.

• B) It guarantees financial success.

• C) It eliminates all financial risks.

• D) It increases your income automatically.

What is the primary purpose of a savings account?

• A) To earn interest on deposited money.

• B) To provide loans to others.

• C) To avoid paying taxes.

• D) To invest in the stock market.

Which of the following is considered a fixed expense?

• A) Monthly rent payment.

• B) Grocery shopping.

• C) Entertainment costs.

• D) Dining out expenses.

What does the term 'interest rate' refer to in finance?

• A) The cost of borrowing money.

• B) The amount of money saved.

• C) The total amount of a loan.

• D) The principal amount of an investment.

Which financial product is typically used for retirement savings?

• A) 401(k) plan.

• B) Checking account.

• C) Credit card.

• D) Personal loan.