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Personal Finance Review (preferred)

Total questions: 20

Worksheet time: 39mins

Name
Class
Date
1.

What is a budget?

a)

a group that helps the community

b)

a safe place where people keep money

c)

a center where you can donate things

d)

a plan for spending and saving money

2.

Which is good advice for saving and spending money?

a)

Spend all of your allowance as soon as you earn it.

b)

Use a budget to plan how much money you can save.

c)

Try to buy things that you want before the things that you need.

d)

Buy things you use only once, and then throw them out.

3.
The main difference between a credit card and debit card is
a)
A debit card requires that you have the cash available in the account; a credit card doesn't
b)
A credit card has the Visa or MasterCard logo; a debit card doesn’t
c)
A debit card does not offer the same protections as a credit card.
d)
A credit card requires that you have the cash available in the account, a debit card doesn't
4.

Which type of card is a loan in which the lender will charge you interest if you do not pay off the balance each month?

a)

Credit Card

b)

Debit Card

c)

Prepaid Card

5.

The money you have left after you've paid your income tax is called....

a)

disposable income

b)

discretionary income

c)

mutual funds

d)

portable income

6.

What is income?

a)

The amount you spend

b)

The amount you don't save

c)

Money you earn from a job

7.

What is a variable expense?

a)

The amount of money you spend

b)

The amount of money you save

c)

An expense that costs different amounts every month

d)

The variable in math

8.

What is investment?

a)

money spent on something with the goal of making more money

b)

money spent on other things

c)

money spent on saved products

9.

Which of the following scenarios demonstrates a good budgeting practice?

a)

Julie’s monthly income is less than her monthly expenses.

b)

Carly’s monthly taxes are equal to her monthly expenses.

c)

Rico spends less money each month than he earns at his job.

d)

Sam spends more money each month than he earns at his job.

10.

Which element of a personal budget is the money that a person earns or receives?

a)

income

b)

savings

c)

expenses

d)

investments

11.

Which part of a personal budget records the amount of money a person spends?

a)

salary

b)

income

c)

expenses

d)

  interest earned

12.
You see a new shirt in the mall and you just can't leave without it. The shirt is on sale for $100. You want to pay for it with your credit card but you only have $75 in your clothes
jar. What do you do?
a)
Don't buy the shirt. Wait until you have enough money in your clothes jar before
using the credit card.
b)
Take the money from your clothes jar and take the rest of the $25 out of your other
expenses jar.
c)
Take all of the money from your cell phone payment jar and leave the $75 in your
clothes jar to buy more clothes another day.
d)
Take all the money from the Entertainment jar.
13.
You and your friends went to Cancun, Mexico for spring break. You spent all of the money in your vacation jar at the nice restaurants on the beach, but now you want to buy souvenirs for your family. What do you do?
a)
Take money from your car jar and understand that you will have to use less gas for the
month.
b)
Take money from your hair jar and skip a hair appointment.
c)
Take from your college savings jar knowing that you can replace the money another
Day.
d)
Charge everything on your credit card and hope for the best.
14.

You walk outside only to find that your car has been towed because you were parked illegally. You paid the towing company with a check and took this unexpected expense from which jar?

a)

Housing

b)

Utilities

c)

Savings

d)

Car

15.

Use the information to answer the question.


“I want to open my own restaurant. I will need to take out a loan from my bank.”

-Jayla Smith, Entrepreneur

Which of the following BEST explains what should Jayla expect by taking a loan from her bank?

a)

to have to pay her employees their monthly salaries

b)

to repay the bank based on the amount of the loan plus interest

c)

to receive money from her employees to help her repay the loan

d)

to be so successful that she will be able to repay the loan in full right away

16.

Use the information to answer the question.

?

__________________________

Your money will be safe.

Your money can earn interest.

You are less likely to spend your money.


Which of the following is the BEST title for the list?

a)

Benefits of bank loans

b)

Benefits of a debit card

c)

Benefits of savings accounts

d)

Benefits of checking accounts

17.

Which of the following scenarios demonstrates a good budgeting practice?

a)

Julie’s monthly income is less than her monthly expenses.

b)

Carly’s monthly taxes are equal to her monthly expenses.

c)

Rico spends less money each month than he earns at his job.

d)

Sam spends more money each month than he earns at his job.

18.

What is an emergency fund?

a)

A savings account set aside for unexpected situations.

b)

A way to invest for retirement.

c)

Something most people don't need, because emergencies are rare.

d)

An investment account that can grow over time.

19.

Eric purchased a movie ticket with his card. This money will come straight out of his checking account. What card did he use?

a)

credit card

b)

debit card

c)

rewards card

d)

gift card

20.

Jen wishes to take a vacation in a few months that costs more than her monthly paycheck will allow. What would be the safest way to get the money for the trip?

a)

charge the trip on her credit card and pay it back of the next several years

b)

invest a large amount of money in the stock market

c)

immediately start putting a portion of the money in an interest earning savings account

d)

use all of the money in her savings account