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Personal Finance - Weeks 1-2 (Intro)

Total questions: 12

Worksheet time: 6mins

Name
Class
Date
1.

Which of these is NOT a category of Personal Finance?

a)

Income

b)

Spending

c)

Investing

d)

Gambling

e)

Saving

2.

You need to wait until you are an adult to start building your wealth.

a)

True

b)

False

3.

What is "Human Capital"?

a)

The skills, knowledge, and experience a person has.

b)

The capital of the world -- Washington D.C.

c)

The money, items, and assets a person has.

4.

Being a millionaire is only possible for a select few people in this world. You basically have to get lucky.

a)

True

b)

False

5.

Sunk Cost Fallacy is...

a)

The idea that it is difficult to stop doing something when you've already invested money into it.

b)

The idea that there is underwater treasure.

c)

The idea that it is a bad idea to pay money upfront before starting an activity.

d)

The idea that if you dig deep into your finances, you can always find more money.

6.

What is "rate of return"?

a)

The percent gain (or loss) of an investment over time. 

b)

The speed at which money comes back to you.

c)

The amount of money you invest.

d)

The taxes paid on the money you have made.

7.

What is the difference between a need and a want?

a)

A need is essential for life.

b)

A want is essential for life.

c)

Needs are more expensive than wants.

d)

People may want different things, but they all need the same things.

8.

What is a financial event?

a)

A life event that has an impact on your finances, usually involving making or spending money.

b)

Information reported to the government concerning your taxes.

c)

The cost or benefit of not doing something.

9.

What is an expense?

a)

The cost required for something or the money spent on something.

b)

A word describing a product that costs a lot

c)

The money you make on a product after subtracting what the materials cost.

10.

Over a long period of time, there is not a big difference between starting investing when you are 13 versus starting when you are 18.

a)

True

b)

False

11.

If you invest in the stock market, you are guaranteed to make money.

a)

True

b)

False

12.

The typical retirement age in the US is 67.

(Hint: This is when people can draw full social security benefits.)

a)

True

b)

False