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Personal Finance Vocab Review

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Which describes the total of a person’s earnings when they get a job?

a)

credit

b)

income

c)

investment

d)

savings

2.

Which is a plan for saving and spending?

a)

budget

b)

checking account

c)

savings account

d)

will

3.

What type of bank account is most linked to spending?

a)

checking

b)

investment

c)

mutual funds

d)

savings

4.

Using credit is most like which of the following?

a)

keeping cash hidden in your closet

b)

spending money from your piggy bank

c)

using “birthday money” to make a purchase

d)

borrowing money from a stranger with a promise to pay back more than you borrowed

5.

What is the difference between income and expenses?

a)

Income is money that is earned, while expenses are spending money

b)

Income is saving money, while expenses are investing money

c)

Income is spending money, while expenses are earning money.

d)

Income is earning money, while expenses are saving money.

6.

What is credit?

a)

A person saves money to use in the future for large purchases.

b)

A person buys something and pays for it later.

c)

A person invests money in new companies.

d)

A person keeps track of their expenses

7.

Why is saving money an important thing to do?

a)

To prevent using credit

b)

To have money for future goal or emergency

c)

To brag about how much money you have

d)

To improve your credit

8.

Personal Loans, mortgages, and credit cards are examples of credit

a)

True

b)

False

9.

You don't need to worry about tracking expenses because banks do overdraft protection

a)

True

b)

False

10.

Budgets are used to plan how your money will be used on

a)

bills

b)

savings

c)

monthly expenses

d)

all of the above