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Saving 101

Total questions: 18

Worksheet time: 54mins

Name
Class
Date
1.

What is it called when all of your income goes to cover your expenses and you have nothing left over for savings?

a)

Savings account

b)

Living paycheck to paycheck

c)

Emergency fund

d)

The 50-20-30 rule of budgeting

2.

Why is living paycheck to paycheck dangerous?

a)

You have no money to pay for surprise expenses, such as a medical bill or car repair

b)

You aren't saving for retirement

c)

You aren't paying off your debts

d)

All of these

3.

What type of account gives you easy access to your money but earns little or no interest?

a)

Checking Account

b)

Savings Account

4.

What type of account earns interest but gives you limited access to your money?

a)

Checking Account

b)

Savings Account

5.

What type of account allows you to access your money by using a debit card and writing checks?

a)

Checking Account

b)

Savings Account

6.

Money set aside for unplanned expenses is called what?

a)

Savings account

b)

Living paycheck to paycheck

c)

Emergency fund

d)

The 50-20-30 rule of budgeting

7.

How many months of expenses should you have saved in your emergency fund?

a)

1 month

b)

3-6 months

c)

8 months

d)

9-12 months

8.

Which of these is a GOOD reason to tap into your emergency fund?

a)

A sale on designer shoes

b)

A rent payment after losing your job

c)

Paying your cable bill

d)

A birthday gift for your mom

9.

When should you start putting money into an emergency fund?

a)

TODAY!

b)

Age 21

c)

When you start paying bills

d)

When you have money left over from your paycheck

10.

According to the 50-20-30 rule of budgeting, what percent of your paycheck should be set aside for mandatory expenses like bills, rent, groceries, and transportation?

a)

50%

b)

20%

c)

30%

11.

According to the 50-20-30 rule of budgeting, what percent of your paycheck should be set aside for savings and debt payments?

a)

50%

b)

20%

c)

30%

12.

According to the 50-20-30 rule of budgeting, what percent of your paycheck should be set aside for "wants", like cable, eating out, or shopping?

a)

50%

b)

20%

c)

30%

13.

You got paid $400 this week. How much of that should you put toward savings according to the 50-20-30 rule?

a)

$200

b)

$80

c)

$120

d)

$8

14.

You got paid $400 this week. How much of that should you put toward mandatory expenses according to the 50-20-30 rule?

a)

$200

b)

$80

c)

$120

d)

$8

15.

You got paid $400 this week. How much of that should you put toward "wants" according to the 50-20-30 rule?

a)

$200

b)

$80

c)

$120

d)

$8

16.

You make $1750 a month at your new full-time job. Time to figure out a budget! Following the 50-20-30 rule, how much of this should you set aside for mandatory expenses?

a)

$350

b)

$875

c)

$525

d)

$700

17.

You make $1750 a month at your new full-time job. Time to figure out a budget! Following the 50-20-30 rule, how much of this should you set aside for savings?

a)

$350

b)

$875

c)

$525

d)

$700

18.

You make $1750 a month at your new full-time job. Time to figure out a budget! Following the 50-20-30 rule, how much of this should you set aside for "wants"?

a)

$350

b)

$875

c)

$525

d)

$700