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Chapter 1 Part 1

Total questions: 15

Worksheet time: 8mins

Name
Class
Date
1.

Making the right choices with your money—managing your money—involves knowing how . . .

a)

Planning, saving, spending, and investing will define your financial portfolio

b)

To make bank deposits using registers with the appropriate transactions listed

c)

Consumer decisions will affect your accounts

d)

Earning, budgeting, saving, spending, and giving affect your money

2.

You should always make sure you have a…

a)

Budget

b)

Credit Line

c)

Direct Deposit

d)

Credit Card

3.

Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.

a)

True

b)

False

4.

To gain an understanding of your personal finances, you should know . . .

a)

Your financial goals

b)

Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals

c)

How much income you have

d)

Your investment portfolio and your financial advisors’ contact information

5.

What is The First Foundation?

a)

Pay cash for college.

b)

Build wealth and give.

c)

Save a $500 emergency fund.

d)

Open a checking account.

6.

Being a spender has many more positives than being a saver

a)

True

b)

False

7.

Personal finance is all the financial decisions a(n) must make in order to earn, budget, save, spend, and give money over time.

a)

Individual or family

b)

Company or organization

c)

Individual or company

d)

Bank

8.

Avoiding debt can lead to financial freedom and hope.

a)

True

b)

False

9.

After World War I, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit…

a)

Started to become more socially acceptable

b)

Increased so rapidly, loan sharks became obsolete

c)

Was offered at even higher interest rates by loan sharks

d)

Was devalued in the marketplace

10.

A money principle to keep in mind is to live on ____ you make

a)

Exactly 20% below what

b)

More than

c)

The same as

d)

Less than

11.

To know your net worth, subtract your liabilities from your ___.

a)

Other liabilities

b)

Net income

c)

Previous net worth

d)

Assets

12.

What is financial literacy?

a)

The content provided in bank statements for consumers

b)

The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively

c)

The curriculum provided to college students about finances for their degrees

d)

The skills to read financial documents for personal finance classes, goals, and statements

13.

Savers have a tendency to be . . .

a)

Strict with their purchases but spend money without a plan

b)

Strict with only purchases for themselves

c)

Strict with what they spend their money on, other than groceries

d)

Strict with their money and not spend any of it

14.

What is the best way to avoid running out of money too quickly?

a)

You can make it a habit to plan and set goals for your money.

b)

You can avoid making any purchases for the next 30 days.

c)

You can put your money in a safe place, like a bank, and not spend it.

d)

You can invest in college.

15.

It is possible to pay for college with cash.

a)

True

b)

False