WorksheetsPersonal Finance Basics
Total questions: 9
Worksheet time: 5mins
What is a budget?
A plan for making and spending money
A detailed report of your income
A loan request form
A summary of your investments
Why is a good credit score important?
It determines your eligibility for a library card
It affects your ability to get a job
It influences the interest rates on loans you qualify for
It increases your social media followers
Which of the following is a basic principle of investing?
Spend more than you earn
Keep all your savings under your mattress
Diversify your investment portfolio
Invest all your money in one stock to maximize profits
What does a fixed-rate mortgage mean?
The interest rate changes based on the stock market
The interest rate and monthly payment remain the same throughout the life of the loan
The mortgage must be repaid in full within 5 years
The initial interest rate is fixed for a period, then adjusts annually
How can you improve your credit score?
By frequently applying for new credit cards
By paying bills on time
By maxing out your credit card every month
By never using any form of credit
What is the purpose of an emergency fund in budgeting?
To cover unexpected expenses without needing to borrow money
To spend on luxury items
To invest in the stock market
To pay for regular monthly bills
Why is creating a budget so important? Check all that apply.
It can help you reach your savings goals for what you want or need.
It can help you keep track of your neighbor's financial habits.
It can help you make better financial decisions.
It can help you get a better job.
It can help you see your spending habits so you can adjust them to what you want or need/
Would you rather have a lot of money but have someone else decide how you spend it, or have a little money but you can spend it however you like?
A lot of money and have someone else control how I spend it
A little money and you decide how you spend it
What is an effective strategy for managing debt?
Taking out more loans to cover existing debt
Paying only the interest on loans
Ignoring debt collection calls
Prioritizing high-interest debt first
