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WorksheetsGet Money Certified Exam (Financial Literacy)
Total questions: 65
Worksheet time: 57mins
Literacy is competence or knowledge in a specified area
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The ability to understand money and how it works in
Financial Literacy
Technology Literacy
Literacy
Financial Stability
Why do you need financial literacy?
Before money existed people used a (a) system where people traded goods and services.
(a) is a tool we use to exchange value.
Money has value because we give it value. We all agree to accept it as a form of payment.
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There is a direct correlation between work & money.
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Money received for work or through investments
(a)
An amount of money that keeps coming in
Stream of Income
Fixed Assets
Expenses
Profit
(a) Income is hard-earned money that one earns in exchange for performing a service
(a) Income is money earned on an investment or work completed in the past that requires little work or no active involvement to generate ongoing revenue
Janecia works part-time at Arby's. She works about 20 hours a week as a cashier. This would classify as which stream of income?
Business Income
Earned Income
Residual Income
Capital Gains
Shantasia started her own clothing line. She brings in about $1,000 a month. This would classify as which stream of income?
Profit (Business) Income
Earned Income
Capital Gains
Dividend Income
David owns a home with a finished basement. He rents his basement out for $1,200 a month. This would classify as which stream of income?
Interest Income
Rental Income
Earned Income
Capital Gains Income
Janell has a savings account with the Credit Union of Atlanta. She gained an extra $0.54 in her account over the year. What stream of income would this classify as?
Interest Income
Capital Gains Income
Royalty Income
Profit Income
Denzel owns a house in Buckhead. He purchased the house in 2016 for $300,000. The home increased in value and is now worth $450,000. What stream of income would this classify as?
Interest Income
Profit Income
Capital Gains
Rental Income
Jontez owns stock in Apple & Delta. They pay him a percentage of the profits just for owning stock in their company. What stream of income would this classify as?
Rental Income
Profit Income
Dividend Income
Interest Income
Brian created an app called "Where they hooping?" he worked really hard on this app and now that he's done with it every time someone uses the app he gets paid. What stream of income would this classify as?
Interest Income
Rental Income
Capital Gains
Residual Income
Slimelife Shawty's new song "No Brakes" is going to be used in a commercial for the NBA Playoffs. The NBA has to pay him for using his song. What stream of income would this classify as?
Residual Income
Profit Income
Earned Income
Royalty Income
Having enough money in savings, investments, and cash on hand to live the life you desire for yourself and your family.
Financial Freedom
Financial Dependence
Debt Free
Investing Lifestyle
It's important to understand that we have to work for money, but it's just as important to understand that your money has to work for you.
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What are ways that you can let your money work for you? (Select ALL that apply)
Investing in stocks & bonds
Investing in a business
Real Estate
Keeping up with the Joneses
What does it mean to pay yourself first?
70% of Americans don’t have $1,000 saved
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45% of people don’t have anything in savings at all.
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Why should you start saving right now?
A (a) is a plan or your money.
When creating a budget its important to classify your wants and your needs.
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A (a) is something that you have to have
A (a) is something you desire to have
Your 4 Walls are the basic needs that you have to live a productive life. Select the 4 Walls from the list below.
Food
Utilities
Transportation
Shelter
Entertainment
What is the proper breakdown of the 50/30/20 Budget?
50% Needs | 30% Wants | 20% Saving & Investing
50% Wants | 30% Needs | 20% Saving & Investing
50% Work | 30% Relaxation | 20% Side Hustles
50% Family | 30% Friends | 20% Self Care
A _____________ is a company that deals with money
Financial Institution
Marketing Firm
Brokerage Firm
Accounting Firm
A (a) is a for profit financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products
A (a) is similar to a bank, but it's not for profit and operates as a cooperative. They typically offer the same services as banks.
The members (the people who open an account) of a Credit Union are the owners.
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A bank is owned by shareholders.
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Anyone can join a bank
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You must have an affiliation to join a Credit Union.
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Credit Unions typically give you more money for saving and charge you less to borrow money.
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Banks typically give you less money for saving and charge you more to borrow money.
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Savings & Loans Associations are similar to a bank, but they specialize in home loans. They must lend 65% of their assets as mortgage loans.
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What are some ways that you can lose money?
Why do we borrow money?
A (a) is money that you borrow, typically from a financial institution, and pay back with interest
A loan that has some type of collateral attached to it. This collateral is collected if the loan cannot be repaid.
Secured Loan
Unsecured Loan
Subsidized Loan
Unsubsidized Loan
A loan that does not have collateral attached to it.
Secured Loan
Unsecured Loan
Hard Money Loan
Title Loan
How can you borrow money responsibly? (Select ALL that apply)
Find the right loan for you
Only borrow what you can repay
Make payments on time
Communicate with your lender if you are having an issue with your finances
Borrow enough to get what you want
In simple terms, (a) is the cost of borrowing money
Financial Institutions make a profit off of interest.
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If you borrow $100 at 5% Interest. What is the total you would pay back to the lender?
$110
$105
$100
$5
This is a detailed report of your credit and payment history
(a)
This is a number that tells potential lenders how safe or how risky you are. Credit Scores range from 300 to 850.
(a)
Why is it important to maintain good credit?
How can you build credit at a young age? (Select ALL that apply)
Become an authorized user on your parents Credit Card
Open a student or secured credit card
Take out a Credit Builder Loan
Pay your bills on time
Take out Student Loans, even if you don't need them.
What are some mistakes young people make that mess up their credit?
Missing Payments
Spending up your credit card limit
Racking up Student Loan Debt
Too many credit card inquiries
Ignoring Past Due Bills
What are some ways you can pay for college without going into debt? (Select ALL that apply)
Take college classes in high school
Start out at community college
Choose an affordable School
Take advantage of Scholarships & Grants
Don’t go if you don’t have to
People buying and selling tiny pieces of companies, based on what they think they’ll be worth in the future.
(a)
Stock is a piece of ownership in a company.
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A loan agreement between you and a company.
A Bond
Secured Loan
Stock Agreement
Dividend
A ___________ is a cash distribution by a company to its shareholders
Dividend
Stock Split
Acquisition
Blockchain
A company pays dividends when there is profit left over.
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Custodial accounts are accounts set up by parents or guardians for the benefit of minors under the age of 18
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An Exchange Traded Fund (ETF) is like a basket of companies that operate in the same industry.
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With a multi-family home, you can live on one side and rent out the other side to create rental income.
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