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Foundations in Personal Finance-Saving

Total questions: 20

Worksheet time: 40mins

Name
Class
Date
1.

The first step you should take when you want to make a large purchase is . . .

a)

Ask your parents to loan you the money with low interest

b)

Apply for a Credit Card

c)

Decide how much you need to save and the time frame that you want to save it in

d)

Sell something you have and use the proceeds

2.

It's not IF and emergency will happen, but ______.

a)

How

b)

Where

c)

Why

d)

When

3.

The initial amount of money that you invest is the ________.

a)

Interest

b)

Principal

c)

Debt

d)

Emergency Fund

4.

47% of Americans have less than $1,000 saved for a(n) __________ .

a)

Emergency

b)

Car

c)

New Smartphone

d)

Retirement Fund

5.

Interest paid on an investment and on any interest previously earned.

a)

compound interest

b)

simple interest

c)

liability

d)

asset

6.

Money put into an account intended for growth.

a)

assets

b)

liabilities

c)

simple interest

d)

investments

7.

All the money decisions a person or family makes including earning, budgeting, saving, spending, and planning for the future.

a)

budget

b)

expenses

c)

personal finance

d)

scarcity

8.

A monthly plan for how you are going to save and spend your income.

a)

expenses

b)

credit

c)

budget

d)

liability

9.

Personal finance is about ________% behavior and ________% head knowledge.

a)

30, 70

b)

20, 80

c)

70, 30

d)

80, 20

10.

Which of the following statements best explains why income alone does not determine wealth?

a)

Investing is the only factor that contributes to wealth building.

b)

Income alone does determine a person's wealth.

c)

Only people who are natural savers can become wealthy.

d)

How much money a person makes does not dictate his or her spending and saving behavior.

11.

Which of these would count as a legitimate reason to use your emergency fund?

a)

To buy your best friend a birthday present

b)

To buy a new outfit for a special occasion.

c)

Your car battery died.

d)

The newest smartphone was released.

12.

___________ is the increase in the prices of goods and services over time.

a)

Rate of Return

b)

Interest

c)

Debt

d)

Inflation

13.
Which of the following is not one of the three basic reasons for saving money? 
a)
Build wealth 
b)
Emergency fund
c)
Large purchases 
d)
Have money available to lend to friends
14.

How much money does one need to make a year to be considered a millionaire?

a)

$100,000

b)

$1,000,000

c)

$10,000,000

d)

A millionaire is not a level of income.

15.

An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings

a)

What is Paycheck to Paycheck?

b)

What is Living Hand to Feet?

c)

What is Budget?

d)

What is Debt to Income?

e)

Not a clue

16.
The knowledge and skillset necessary to be an informed consumer and manage finances effectively
a)
Interest
b)
Budget
c)
Financial Literacy
d)
Personal Finance
17.
Since you are a teenager, what you do now with money will have little effect on your financial future.
a)
True
b)
False
18.

With the right _______, you really can make good choices with your money.

a)

knowledge

b)

behavior

c)

money principles

d)

all of these

19.

44% of Americans report they have more than $1,000 in savings.

a)

What is False?

b)

What is True?

20.

The dollar value of a person’s assets is greater than the dollar value of their liabilities

a)

Positive Net Worth

b)

Negative Net Worth