Financial Literacy

What is a budget?

• A plan for how to spend and save money

• A loan from a bank

• A list of things you want to buy

• A type of bank account

Fixed expenses are:

• Expenses that change every month

• Expenses that remain the same each month

• Unexpected costs

• Money set aside for savings

How much of your income is generally recommended to be saved?

• 50%

• 10-20%

• 5%

• 30%

What is an emergency fund used for?

• Buying luxury items
  
  
  

• Covering unexpected expenses like medical bills or car repairs

• Investing in stocks

• Paying regular monthly bills

What is the difference between needs and wants?

• Needs are essential for survival; wants are things you desire but can live without

• Needs are always more expensive than wants

• Wants are things you must have to live

• There is no difference

What is the main purpose of a savings account?

• To spend money easily

• To earn interest and save money safely

• To take out loans

• To buy stocks

Which of the following accounts is best for daily transactions?

• Savings account

• Checking account

• Fixed deposit account

• Investment account

What does an overdraft fee mean?

• A reward given by the bank for saving money

• A penalty for spending more money than is in your account

• A tax on large deposits

• A bonus for using a debit card frequently

What is the benefit of online banking?

• It allows you to manage your finances from anywhere

• It provides free money

• It eliminates all banking fees

• It prevents all fraud and theft

What does “interest” on a savings account mean?

• A penalty for withdrawing money

• A reward for keeping money in the account

• A tax imposed by the government

• A one-time fee for opening an account