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Personal Finance Review

Total questions: 22

Worksheet time: 12mins

Name
Class
Date
1.

Adele needs to plan for a large-scale purchase. What is her BEST option?

a)

Put money into a savings account

b)

Use a credit card

c)

Take out a loan

d)

Ask a family member for a loan

2.

Money you earn through work

a)

Taxes

b)

Interest

c)

Income

d)

Credit Card

3.

A budget is... (select all that apply)

a)

Your credit card bill at the end of the month.

b)

An estimate of income/expenses (spending) for a set period of time.

c)

The price of your insurance for the year.

d)

A tool to help manage your money.

4.

Why is creating a budget so important? (Select all that apply)

a)

It can help you reach your savings goals for what you want or need.

b)

It can help you make better financial decisions.

c)

It can help you see your spending habits so you can adjust them to what you want or need.

d)

It can help you keep track of your neighbor's financial habits.

e)

It can help you get a better job.

5.

Darin wants to plan for his future. What is the BEST advice to give him for how to manage his monthly paycheck?

a)

Buy everything you want whenever you want to

b)

Invest it all now

c)

Pay your debts/expenses and invest some for the future

d)

Spend it all now

6.

When the bank charges interest on a loan we borrow, we must...

a)

Pay more money than we borrowed from the bank

b)

Pay less money than we borrowed from the bank

7.

A plan of your expected income and how you will use it to meet your expected expenses over a period of time

a)

Plan

b)

Budget

c)

Statement

d)

Income

8.

Which word of phrase should be at the top of the left column of this budget?

a)

Cash flow

b)

Fixed costs

c)

Income

d)

Savings

9.

People keep a personal budget to help them

a)

set and reach financial goals.

b)

earn promotions at work.

c)

buy with credit.

d)

buy anything they want.

10.

There are many reasons why you should save money for a future purchase. Which is NOT a reason to save up for a future purchase?

a)

You can avoid taking out a loan.

b)

You can finance the purchase at a lower interest rate

c)

You will not have to use high interest credit cards

d)

You will not have to make changes to your monthly budget

11.
What is one advantage of having a credit card?
a)
It prevents you from spending more than you earn.
b)
It allows you to make purchases without carrying lots of cash.
c)
It encourages you to budget your money wisely.
d)
It helps you pay off debts that you may have.
12.
How is charging a purchase like getting a loan?
a)
You borrow money from your credit provider.
b)
You borrow money from the store in order to pay your credit provider.
c)
You borrow money from an ATM in order to pay your credit provider.
13.

Which person is going to have the MOST financial success?

a)

Every payday, Layla pays all her bills and then spends the rest of her money on clothes.

b)

Every payday, Joaquin spends all his money going out with his friends.

c)

Every payday, Jill puts money aside for a vacation and then pays as many bills as she can with what is left.

d)

Every payday, Johnson pays his bills, puts money in his savings account, and then spends what is left.

14.

What is the BEST way to record your expenses each month?

a)

Balance your checkbook at the end of each month

b)

Keep all your receipts in case you need to return something

c)

Use a system to record your spending, so you can see where your money is spent

d)

Check your bank balance daily to make sure there is money in the account

15.

What is saving?

a)

Amont of money used for purchasing items

b)

Setting aside money for future use

c)

Amount of money a worker earns

d)

Amount of money spent in a day

16.
The main difference between a credit card and debit card is
a)
A debit card requires that you have the cash available in the account; a credit card doesn't
b)
A credit card has the Visa or MasterCard logo; a debit card doesn’t
c)
A debit card does not offer the same protections as a credit card.
d)
A credit card requires that you have the cash available in the account, a debit card doesn't
17.

Which type of card is a loan in which the lender will charge you interest if you do not pay off the balance each month?

a)

Credit Card

b)

Debit Card

c)

Prepaid Card

18.

What is income?

a)

The amount you spend

b)

The amount you don't save

c)

Money you earn from a job

19.

What is a variable expense?

a)

The amount of money you spend

b)

The amount of money you save

c)

An expense that costs different amounts every month

d)

The variable in math

20.

Which of the following scenarios demonstrates a good budgeting practice?

a)

Julie’s monthly income is less than her monthly expenses.

b)

Carly’s monthly taxes are equal to her monthly expenses.

c)

Rico spends less money each month than he earns at his job.

d)

Sam spends more money each month than he earns at his job.

21.

Credit can best be described as

a)

A loan of money

b)

a big cost

c)

Savings

22.

What is the money one spends on bills or obligations called?

a)

income

b)

insurance

c)

salary

d)

expenses