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Personal Finance Quiz

Total questions: 22

Worksheet time: 36mins

Name
Class
Date
1.

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

a)

True

b)

False

2.

You should always make sure you have a (a)   .

3.

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

4 lines
4.

What is The First Foundation?

4 lines
5.

Being a spender has many more positives than being a saver.

a)

True

b)

False

6.

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

4 lines
7.

Avoiding debt can lead to financial freedom and hope.

a)

True

b)

False

8.

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

a)

Other liabilities

b)

Net income

c)

Previous

d)

Assets

9.

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

10.

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

11.

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.

12.

It is possible to pay for college with cash.

a)

True

b)

False

13.

An important money principle to consider is that you should ________ and ________ your money.

a)

Save; invest

b)

Invest; lay out

c)

Spend; invest

d)

Invest; endow

14.

If your assets total more than your liabilities, you will have a(n) __________ net worth.

a)

Positive

b)

Balanced

c)

Negative

d)

Equal

15.

Your money personality impacts:

a)

Your understanding of bank transactions

b)

How you handle money

c)

Your financial literacy level

d)

What you plan for as an adult

16.

Personal finance is 20% __________ and 80% __________.

4 lines
17.

Why is Personal Finance dependent on your behavior?

4 lines
18.

What is the formula you need to use to find your Net Worth?

4 lines
19.

Explain the difference between short term, medium term and long term goals. Give an example of each goal.

4 lines
20.

Why should you be aware of whether you are a spender or a saver?

4 lines
21.

What does the common phrase "living paycheck to paycheck" mean? Explain why this is a problem.

4 lines
22.

Identify the Five Foundations and describe each of them. Then, evaluate how they will help you manage your money until graduation and beyond. (It is okay to use your own voice with the capital I to refer to yourself)

4 lines