Financial literacy is important for managing money wisely because it:

• helps in making informed financial decisions

• increases spending without planning

• encourages taking unnecessary loans

• promotes impulsive buying

Financial literacy helps in preventing financial mistakes by:

• Providing knowledge to make informed decisions

• Encouraging impulsive spending

• Increasing financial risks

• Reducing savings

Financial literacy builds good habits for the future by:

• Encouraging saving and budgeting

• Promoting impulsive spending

• Ignoring financial planning

• Discouraging investment

The definition of personal finance is:

• The management of money to meet current and future needs

• The study of how to invest in the stock market

• The process of buying and selling real estate

• The act of saving money in a bank account

Budgeting in the context of personal finance is:

• a plan for managing income and expenses

• a method for increasing income

• a strategy for investing in stocks

• a way to avoid paying taxes

What does saving mean in personal finance?

• Accumulating money for future use

• Spending money on luxury items

• Borrowing money from a bank

• Investing in stocks

Spending wisely according to personal finance principles involves:

• Creating a budget and sticking to it

• Spending more than you earn

• Ignoring financial goals

• Relying on credit for daily expenses

Investing for the future in personal finance involves:

• buying assets that grow

• purchasing stocks and bonds

• buying real estate

• all of the above

Managing credit and debt is related to personal finance because it:

• can either positively or negatively affect your credit score

• is unrelated to financial planning

• only affects large businesses

• is only important for investments

What are the sources of income?

• Salary, Business, Investments

• Only Salary

• Only Business

• Only Investments