SS7E10 Personal Finance Test

What is a plan for saving and spending?

• a budget
• a checking account
• a savings account
• a will

Credit becomes a problem when ________________.

• banks begin to issue their own credit cards
• credit is used to pay for things like college tuition
• credit card companies offer people additional credit cards
• a person cannot find the money to pay thei monthly bills

Which of the following allows people to increase their income?

• arguing with a boss
• applying for a credit card
• receiving more training
• opening a checking account

Which of the following is NOT a wise financial decision?

• using credit for everything
• saving for the future
• writing down expenses to track spending
• creating a budget based on your NET income

Why do people save money?

• to buy things now.
•  They want to give it away.
• To spend money.
• They can pay for things in the future.

Your paycheck is an example of

• net gain
• net loss
• income
• expense

Which is NOT a typical goal for saving?

• To create an emergency fund

• To pay for higher education

• To save for a new car

• To buy groceries for this week

What is a good strategy to help you save?

• 1st, spend money on all expenses; put the rest into saving

• Tap into your savings on a regular basis to purchase small items, like snacks

• Pay yourself first - set aside money for savings each month

• Keep your spending and saving money together in 1 account

Retirement, college education, wedding, a nice trip, and a new truck are all what?

• reasons people save
• examples of undisciplined spending
• things bought on credit
• methods of investing

Which of the following is a characteristic of an effective budget?

• too much income
• investing more than you save
• expenses greater than your income
• spending less than your income