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WorksheetsPersonal Finance Unit 2: Savings
Total questions: 21
Worksheet time: 42mins
Which of the following best defines borrowing money? (a)
Why is saving important?
To buy unnecessary items
To have money available for emergencies
To impress friends and family
To pay off credit card debt
How can you build strong saving habits?
By spending all your money each month
By setting aside a portion of your income regularly
By borrowing money from friends
By using credit cards for all your purchases
What is the main difference between a savings account and a checking account?
Saving accounts have higher interest rates than checking accounts
Saving accounts are used for short term goals while checking accounts are used for long-term goals
Saving accounts allow unlimited withdrawals while checking accounts have limits
Saving accounts require a minimum balance while checking accounts do not
Savings accounts are primarily used for (a)
What is compound interest?
The interest earned only on the first deposit.
The interest earned on the deposit & the previously earned interest
The interest charged on your credit card
This account is used for everyday spending. (a)
Which of the following is an example of a short-term financial goal?
Saving for retirement
Buying a car in three years
Paying off a long expensive house mortgage
Which of the following is an example of a long-term financial goal?
Saving for a vacation next summer
Paying off a credit card bill next month
Buying a new smartphone next week
Saving for retirement in 30 years
What is the recommended percentage of your income to save each month? Hint 50-30-20
5%
20%
30%
50%
Which of the following would NOT help your money grow in a savings account?
Depositing larger amounts of money
Withdrawing money more frequently
Keeping the money in the account for a long period of time
What is a budget?
A plan for saving money
A plan for spending money
A loan from a bank
A credit score report
How can you avoid overspending with credit cards?
Paying the minimum balance each month
Only use credit cards for essential purchases that you can pay for later
Increasing the limit (amount you can borrow) on your credit card
Ignoring the credit card statements.
When you are shopping and want to save money, you can...
pay with a credit card so you don't have to pay right away.
compare your purchase options and look for discounts.
buy impulsively without comparing prices (just shop on Amazon).
Only shop at expensive stores because their goods last longer.
Interest paid on an investment and on any interest previously earned.
compound interest
simple interest
liability
asset
All the money decisions a person or family makes including earning, budgeting, saving, spending, and planning for the future.
expenses
personal finance
scarcity
The charge for borrowed money generally defined as a percentage; also, the earned interest on money you save or invest.
principal
time
interest
balance
The change of goods or services constant over time
expense
inflation
budget
A monthly plan for how you are going to save and spend your income.
expenses
credit
budget
liability
The amount of money you should have in your emergency fund.
3-6months
1 month
18 months
3weeks
The process of putting money into an account
ATM
deposit
withdrawal
overdraft
