Financial Literacy 5th Grade

What is an expense?

• An expense is any cost incurred in the process of purchasing goods or services.

• An expense is a type of income generated from investments.

• An expense is a financial obligation that must be paid in the future.

• An expense is a profit made from selling goods or services.

What does saving mean?

• Saving is the process of setting aside a portion of income for future use.

• Saving is the act of spending all your income immediately.

• Saving refers to investing money in stocks and bonds.

• Saving means borrowing money for future expenses.

What is a bank?

• A place where people store their food.

• A financial institution that accepts deposits from the public and provides loans.

• A type of investment that guarantees high returns.

• A government agency that regulates currency.

What is a financial goal?

• A financial goal is a specific objective to save or invest money for a particular purpose.

• A financial goal is an amount of money that one wishes to spend immediately.

• A financial goal is a vague idea of wanting to be rich someday.

• A financial goal is a plan to avoid all expenses and save every penny.

What does it mean to invest?

• Investing means putting money into financial schemes, shares, or property with the expectation of achieving a profit.

• Investing is the act of saving money for future use without any expectation of profit.

• Investing refers to spending money on luxury items to enhance personal enjoyment.

• Investing involves borrowing money to buy assets that will depreciate over time.

What is a budget?

• A plan that outlines expected income and expenses over a specific period.

• A document that tracks only expenses without income.

• A financial statement that shows past performance only.

• A tool used for investing in stocks and bonds.

What is interest?

• The fee paid for using someone else's money.

• The amount of money saved in a bank account.

• The cost of borrowing money or the earnings from saving or investing money.

• A type of investment that guarantees returns.

What is a financial plan?

• A financial plan is a comprehensive evaluation of an individual's current and future financial state.

• A financial plan is a document that outlines a person's investment strategy.

• A financial plan is a list of expenses for the month.

• A financial plan is a summary of a person's credit history.

What is a savings account?

• A type of investment account that does not earn interest.

• A bank account that earns interest on the money deposited.

• A checking account used for daily transactions.

• A loan account for borrowing money from the bank.

Why is budgeting important?

• It helps individuals plan their spending and save money.

• It allows people to avoid paying taxes.

• It guarantees wealth without effort.

• It is only necessary for businesses, not individuals.