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Personal Finance Vocabulary Assessment

Total questions: 17

Worksheet time: 9mins

Name
Class
Date
1.

What is the definition of wealth?

a)

A measurement of your assets minus your liabilities

b)

Total earnings before any deductions are taken

c)

Money received from work

d)

The cost for one item or measurement

2.

What is the difference between wage and salary?

a)

Wage is money received from work, while salary is a set amount paid for every hour worked

b)

Wage is a set amount paid for every hour worked, while salary is a fixed amount paid over a period of time

c)

Wage is a budgeting method, while salary is a type of insurance

d)

Wage is a fixed amount paid over a period of time, while salary is the amount paid for every hour worked

3.

What is a zero-based budget?

a)

A budgeting method that allocates 50% to needs, 30% to wants, and 20% to savings and debt repayment

b)

A budgeting method where every anticipated earning is assigned a role to be spent, saved, or invested somewhere

c)

A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes

d)

The amount of money needed to sustain a certain level of living

4.

What is the definition of cost of living?

a)

The amount of money needed to sustain a certain level of living, including basic expenses such as housing, food, taxes, and healthcare

b)

A type of auto financing that allows you to 'rent' a car from a dealership

c)

The basic services your home, apartment, or business needs to keep it comfortable and functioning properly

d)

A form of property insurance that covers losses to personal property

5.

What is the definition of gross pay?

a)

The cost for one item or measurement that allows it to be easily compared to other similar products

b)

A cost that can be expected at regular intervals and that remains the same amount

c)

Total earnings before any deductions are taken

d)

Total earnings after payroll taxes and other deductions have been taken out

6.

What is the difference between gross pay and net pay?

a)

The cost for one item or measurement that allows it to be easily compared to other similar products

b)

A cost that can be expected at regular intervals and that remains the same amount

c)

Gross pay is the total earnings before any deductions are taken

and net pay is your take home pay.

d)

Net pay is typically higher than gross pay.

7.

What is the definition of a freelancer?

a)

A type of auto financing that allows you to 'rent' a car from a dealership

b)

A portion of the total cost of an item that must be paid at the time of purchase

c)

A labor market where the majority of people have short-term jobs or gigs such as freelancing and temp jobs

d)

An individual who earns money on a per-job or per-task basis, usually for short-term work

8.

What is the definition of a residential lease?

a)

A form of property insurance that covers losses to personal property

b)

A contract between a tenant and a landlord providing the terms and costs for renting the property

c)

A type of auto financing that allows you to 'rent' a car from a dealership

d)

The basic services your home, apartment, or business needs to keep it comfortable and functioning properly

9.

What is the definition of a surplus?

a)

When your income exceeds your expenses and you have money leftover

b)

A cost that appears irregularly or that changes in amount

c)

When your expenses exceed your income

d)

A set amount you are paid for every hour that you work

10.

What is the definition of a variable expense?

a)

The amount of money needed to sustain a certain level of living

b)

A cost that can be expected at regular intervals and that remains the same amount

c)

A cost that appears irregularly or that changes in amount

d)

A budgeting method where money for monthly spending is taken out in cash and placed in labeled envelopes

11.
Using the 50/30/20 method of budgeting, if you make $2650 during the month, how much would you put toward SAVINGS AND DEBT repayment?
a)
$940
b)
$530
c)
$1325
d)
$795
12.
Using the 50/30/20 method of budgeting, if you make $2650 during the month, how much would you put toward WANTS?
a)
$940
b)
$530
c)
$1325
d)
$795
13.
Which is usually larger? Your gross pay or your net pay?
a)
gross pay
b)
net pay
14.
Calculate your net pay if your gross pay is $2934 and you have 12% state tax and 13% federal tax withheld from your check.
a)
$733.50
b)
$2200.50
c)
$352.08
d)
2552.58
15.
What is one advantage of working for an hourly wage over working for a salary?
a)
People usually make more money when they work for an hourly wage.
b)
Health insurance is only available when you work for a wage.
c)
The more hours you work, the more money you are paid.
d)
If you do not work, you do not get paid.
16.
What is one advantage of working for a salary instead of an hourly wage?
a)
People usually make more money when they work for a salary.
b)
Health insurance is only available when you work for a salary.
c)
The more hours you work, the more money you are paid.
d)
You can have days off and still get paid.
17.
What is one DISADVANTAGE of working for a salary instead of an hourly wage?
a)
People usually make more money when they work for a salary.
b)
Health insurance is only available when you work for a salary.
c)
The more hours you work, the more money you are paid.
d)
No matter how many hours you work, you still get paid the same.