Financial Literacy Quiz

What is a financial goal?

• A written plan that identifies financial goals and outlines specific actions needed to meet those goals

• An objective that a person sets that affects how they spend or save money

• An individual's total earnings from pay and/or other sources, before taxes or other deductions

• An estimate or plan to manage income and expenses over a set period

What is a financial plan?

• An individual's total earnings from pay and/or other sources, minus income tax and other deductions

• A budget in which income is equal to or greater than expenses

• A written plan that identifies financial goals and outlines specific actions needed to meet those goals

• Things that do not cost the same every month

What does gross income refer to?

• An individual's total earnings from pay and/or other sources, before taxes or other deductions

• An estimate or plan to manage income and expenses over a set period

• Paying money to get goods and services

• Things that cost the same every month

What is net income?

• An individual's total earnings from pay and/or other sources, before taxes or other deductions

• An individual's total earnings from pay and/or other sources, minus income tax and other deductions

• A budget in which income is equal to or greater than expenses

• Things that do not cost the same every month

What is a balanced budget?

• A budget in which income is equal to or greater than expenses

• An estimate or plan to manage income and expenses over a set period

• An individual's total earnings from pay and/or other sources, before taxes or other deductions

• Things that cost the same every month

What are fixed expenses?

• Things that do not cost the same every month

• Things that cost the same every month

• An estimate or plan to manage income and expenses over a set period

• An individual's total earnings from pay and/or other sources, minus income tax and other deductions

What is the purpose of budgeting tools like Excel spreadsheets and Google Sheets?

• To track spending and saving

• To calculate taxes

• To invest in stocks

• To manage employee payroll

What does the interest rate represent?

• The total amount of money borrowed

• The percentage or decimal value of interest charged or earned on the principal

• The future value of an investment

• The monthly payment on a loan

What is the principal amount?

• The total interest paid over a loan period

• The initial amount of money borrowed or invested

• The monthly payment on a loan

• The total amount of money saved in a year

What is simple interest?

• Interest calculated on the initial principal only

• Interest calculated on both the principal and accumulated interest

• Interest that changes monthly

• Interest that is paid upfront