EVERFI: Financial Literacy® for High School Terms

What is the definition of the 50-30-20 Method?

• A type of insurance purchased by vehicle owners

• A budgeting method that allows an individual to spend 50 percent on needs, 30 percent on wants, and 20 percent on savings.

• A plan for income and expenses during a set period.

• An account into which a sum of money is deposited for a specified length of time.

Which term matches the following definition? 'A type of insurance purchased by vehicle owners to protect them against financial loss in the event of an accident or theft.'

• Auto insurance

• Bank

• Budget

• Check

A for-profit financial institution that is federally licensed to receive deposits and issue loans is called a ________.

• Bank

• Credit Union

• Insurance Company

• Brokerage Firm

Any perk offered to an employee in addition to a salary is known as:

• Budget

• Benefits

• Cash

• Career

A type of insurance that helps pay for someone else's emergency services and medical care if the person causes a car accident is called ________.

• Bodily injury liability

• Collision coverage

• Comprehensive insurance

• Personal injury protection

A plan for income and expenses during a set period is called a ________.

• Budget

• Invoice

• Receipt

• Contract

An account into which a sum of money is deposited for a specified length of time, typically paying higher interest rates than standard savings and checking accounts, is called a ________.

• Certificate Of Deposit (CD)

• Money Market Account

• Savings Bond

• Checking Account

A written, dated, and signed draft that directs a bank to pay a specific sum of money to a person or company is called a ________.

• Check

• Invoice

• Receipt

• Voucher

An account at a financial institution into which money is deposited and from which checks can be written for purchases or services; may be used to receive wages and pay bills is called a __________.

• Checking Account

• Savings Bond

• Credit Card

• Certificate of Deposit

_________ is something you pledge to a lender if you fail to make payments.

• Collateral

• Dividend

• Invoice

• Deposit