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Personal Finance Quiz

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Which type of job would a person likely earn the MOST income from over a yearlong period?

a)

a full-time, low-skill job

b)

a full-time, high-skill job

c)

a part-time, low-skill job

d)

a part-time, high-skill job

2.

Use the information to answer the question.

Abe, a 35-year-old teacher, is saving money for five things:

1. Retirement

2. A bowling ball

3. A family camping trip in the summer

4. His 7-year-old son’s college tuition

5. His 15-year-old daughter’s college tuition

Which items from the list represent medium-term savings goals for Abe?

a)

2 and 3

b)

4 and 5

c)

3 only

d)

5 only

3.

Which items from the list represent short-term savings goals for Abe?

a)

2 and 3

b)

4 and 5

c)

3 only

d)

5 only

4.

Which items from the list represent long-term savings goals for Abe?

a)

2 and 3

b)

4 and 5

c)

3 only

d)

5 only

5.

What is a benefit of saving money in a bank?

a)

Money in savings accounts earns interest.

b)

Money in savings accounts cannot be taxed.

c)

People with savings accounts have access to unlimited credit.

d)

People with savings accounts have access to unlimited loans.

6.

Which of the following is an advantage a family gets from setting aside money for unplanned expenses as part of their budget?

a)

It forces them to pay less for essentials, such as food and housing.

b)

It provides extra money if they decide to take an unplanned vacation.

c)

It prevents them from going into debt to pay for unplanned expenses.

d)

It prevents them from bankruptcy over a car repair or visit to the vet.

7.

What do personal budgets help people do?

a)

manage their incomes

b)

avoid having to pay taxes

c)

find good they want to purchase

d)

balance their time at home and work

8.

What does creating and following a personal budget help people do?

a)

get a lower tax rate

b)

earn government benefits

c)

earn more money at work

d)

save money for emergencies

9.

Use the information to answer the question.

One consumer organization distributes a form to help families plan their monthly budgets. Under the title for each expense category, such as “Housing,” is the reminder that these budget items are, “Expenses that you can budget for, so you have money saved to pay for unplanned or annual bills.”

What is the reminder telling families about unplanned expenses?

a)

They should set aside a certain amount for unexpected expenses in their budgets.

b)

They should pay their regular expenses before they pay any unexpected ones.

c)

They will have money for unexpected expenses if they plan according to these categories.

d)

They must lower their regular monthly expenses when they have unexpected expenses.

10.

Use the information to answer the question.

The Samuels family often faces unexpected expenses, such as when one of their dogs gets sick. This year, they received a $5,000 income tax refund.

Which option below represents a wise compromise between giving themselves a treat and preparing for unexpected expenses?

a)

save what they think their unexpected expenses will cost and spend the rest

b)

spend the $5,000 on a vacation and promise to save more when they get home

c)

spend $1,000 on things they want and save the rest for unexpected expenses

d)

save the entire amount for unexpected expenses and begin saving for a vacation

11.

Jonathon has a weekly disposable income of $50.00. Which option carries the HIGHEST risk of Jonathon losing his money without receiving any benefit?

a)

investing in stocks with his disposable income

b)

storing his disposable income at home in a safe

c)

depositing his disposable income in a savings account

d)

purchasing a video game he desires with his disposable income

12.

Use the information to answer the question.

Each month, Malia has $200.00 of disposable income after she has paid for all of her necessities each month.

In what way would Malia likely increase the value of her money the MOST if there were no risk involved in any option?

a)

by depositing her money in a bank

b)

by purchasing goods with her money

c)

by storing her money in a safe at home

d)

by investing her money in the stock market