Personal Finance Review

What is the difference between income and profit?

• Income is the amount you have after paying bills.

• Income and profit are the same thing; they are not different.

• Profit is what's left over after expenses are subtracted from income.

• Profit is similar to a salary, while income is not.

Which of the following is NOT a benefit of becoming an entrepreneur?

• Risking your personal finances to start a business

• Fulfilling a need in the community

• Making a large profit

• Setting your own schedule and being your own boss

A household budget can help with which of the following?

• Reducing entrepreneurial risk

• Lowering credit interest rates

• Increasing investment dividends

• Money management, saving, and avoiding debt

What is the term for the amount of money a person earns throughout the year?

• Savings

• Income

• Budget

• Debt

What does setting aside income for the future refer to?

• Income

• Debt

• Savings

• Budget

Who is someone that starts a business in hopes of making a profit?

• Entrepreneur

• Investor

• Manager

• Employee

What is a plan for spending money known as?

• Income

• Budget

• Savings

• Debt

What is an example of wise financial planning for the future?

• Kim charges as much as she can on her credit card.

• Cara pays high amounts of interest.

• Steve waits until after the due date to pay his bills.

• Susan tracks how much she makes and spends.

Sandra's parents are planning for their retirement, a time when they will stop working.

Why is planning important for Sandra's parents?

• They can learn skills for work.

• They can get a credit card.

• They can begin to pay taxes.

• They can have enough savings.

Bob receives a record each month of his activity at a bank. Use the record below to answer the question.

 

Record for the Month of October

• Fee paid to the bank for a savings account: $1

• Money earned in interest on savings: $2

• Money deposited into savings: $10

• Total amount in the savings account: $95

Which activity shows the money Bob receives for saving his money in the bank?

• $10

• $95

• $1

• $2