WorksheetsSS7E10 Personal Finance Test
Total questions: 30
Worksheet time: 18mins
Name
Class
Date
1.
Which of the following does a person need to know to plan an effective budget?
a)
his or her credit score
b)
personal income
c)
statewide interest rates
d)
adjustable rate mortgages
2.
Which of the following is a characteristic of an effective budget?
a)
too much income
b)
investing more than you save
c)
expenses greater than your income
d)
spending less than your income
3.
Retirement, college education, wedding, a nice trip, and a new truck are all what?
a)
reasons people save
b)
examples of undisciplined spending
c)
things bought on credit
d)
methods of investing
4.
David wants to buy a new car. Since the car costs more than the amount of money he has, David pays for half of the car out of his savings account and borrows the rest. David now has what?
a)
budget
b)
debt
c)
investments
d)
savings
5.
The amount of money you make each month is considered what?
a)
credit
b)
debt
c)
income
d)
interest
6.
Barbara bought a $500 dress using her credit card. By the time she finished paying back the credit card company, Barbara paid $575 for the dress. The extra $75 was what?
a)
credit
b)
debt
c)
expenditure
d)
interest
7.
Having a budget, investing in the future, and staying out of debt are ways citizens ______________.
a)
manage their money wisely
b)
influence government spending
c)
go bankrupt
d)
provide municipal revenue
8.
You need to purchase a pair of sneakers since they are required for physical education class. Which of the following is an example of effective decision making?
a)
You buy a pair of sneakers after considering fit, appearance, and cost.
b)
You buy the first pair of sneakers you try on at the first store you visit.
c)
You use your money to buy a pair of jeans instead of a pair of sneakers.
d)
You buy the most stylish and expensive pair of sneakers you find.
9.
Which of the following allows people to increase their income?
a)
arguing with a boss
b)
applying for a credit card
c)
receiving more training
d)
opening a checking account
10.
Which form of payment is the most expensive for the buyer?
a)
credit card
b)
debit card
c)
cash
d)
check
11.
Which of the following is NOT an example of credit?
a)
credit card
b)
debit card
c)
home loan
d)
student loan
12.
Which of the following is NOT an advantage of credit?
a)
acquire valuable assets
b)
allows consumers to take advantage of sales
c)
interest increases the costs of purchases
d)
useful in an emergency
13.
What is credit?
a)
the ability to borrow money
b)
a type of card used to get money from a checking account
c)
a useful tool for borrowing more money that you can afford to repay
d)
a way to borrow money that is only used by businesses and the government
14.
What is a plan for saving and spending?
a)
a budget
b)
a checking account
c)
a savings account
d)
a will
15.
Credit becomes a problem when ________________.
a)
banks begin to issue their own credit cards
b)
credit is used to pay for things like college tuition
c)
credit card companies offer people additional credit cards
d)
a person cannot find the money to pay thei monthly bills
16.
Which is NOT a typical goal for saving?
a)
To create an emergency fund
b)
To pay for higher education
c)
To save for a new car
d)
To buy groceries for this week
17.
What is a good strategy to help you save?
a)
1st, spend money on all expenses; put the rest into saving
b)
Tap into your savings on a regular basis to purchase small items, like snacks
c)
Pay yourself first - set aside money for savings each month
d)
Keep your spending and saving money together in 1 account
18.
Which is referred to as a 'need'?
a)
cell phone
b)
food
c)
Nike tennis shoes
d)
baseball glove
19.
Buy only the things you ______________ first.
a)
need
b)
want
c)
afford
d)
save
20.
Save to buy the things you ____________.
a)
afford
b)
need
c)
want
d)
steal
21.
Your paycheck is an example of
a)
net gain
b)
net loss
c)
income
d)
expense
22.
Why do people need jobs?
a)
because they are bored
b)
to earn money for needs and wants
c)
because kids are in school all day
d)
to volunteer
23.
Why do people save money?
a)
to buy things now.
b)
They want to give it away.
c)
To spend money.
d)
They can pay for things in the future.
24.
What is the first step in budgeting?
a)
Record what you spend
b)
Estimate your income
c)
Set financial goals
d)
Review and evaluate monthly
25.
Which of the following is NOT a wise financial decision?
a)
using credit for everything
b)
saving for the future
c)
writing down expenses to track spending
d)
creating a budget based on your NET income
26.
What is something financially wise consumers do?
a)
postpone major purchases until money can be saved for it
b)
spend now, figure out how to pay for it later
c)
worry about emergencies when they happen
d)
set only short term financial goals
27.
Why budget?
a)
prevent debt
b)
plan for future
c)
save money
d)
all of these
28.
Allowance, wages, tips, and interest earned over time are
a)
Income
b)
Savings
c)
Fixed Income
d)
Budget
29.
You need this in your budget for long-range goals like taking a vacation.
a)
Gross pay
b)
net pay
c)
savings
d)
none of these
30.
Choose the example that is a clearly written financial goal.
a)
Save money for college for the next four years
b)
pay off credit card bills for the next 6 months
c)
invest in a 401k for retirement
d)
establish an emergency fun of $2,000 in 5 months
100 %
