Financial Literacy

What is the purpose of a budget?

• To track income and expenses

• To increase debt

• To spend money impulsively

• To save money

What is a budget?

• A plan for spending money

• A plan for saving money

• A plan for earning money

• A plan for investing money

What is the purpose of a retirement account?

• To save money for emergencies

• To earn interest on money

• To invest money in stocks and bonds

• To save money for retirement

What is an emergency fund?

• Money saved for vacations

• Money saved for unexpected expenses

• Money saved for retirement

• Money saved for investments

What is the purpose of a 401(k) account?

• To save money for emergencies

• To earn interest on money

• To invest money in stocks and bonds

• To save money for retirement

What is a credit score?

• A measure of how much money you owe

• A measure of your ability to save money

• A measure of your ability to earn money

• A measure of your creditworthiness

What is the recommended percentage of income to save?

• 10%

• 25%

• 50%

• 75%

What is the difference between a checking account and a savings account?

• Checking accounts earn interest, while savings accounts do not

• Checking accounts are used for daily transactions, while savings accounts are for long-term savings

• Checking accounts have higher fees, while savings accounts have lower fees

• Checking accounts have a higher minimum balance requirement than savings accounts

What is savings?

• Money spent on wants

• Money spent on needs

• Money set aside for future use

• Money borrowed from others

What is the purpose of a savings account?

• To earn interest on money

• To invest money in stocks

• To borrow money

• To pay bills