WorksheetsFinancial Literacy Quiz
Total questions: 19
Worksheet time: 17mins
What expenses are categorized as "needs" in budgeting?
What expenses are categorized as "wants" in budgeting?
What is "savings" in budgeting?
How much of your salary do unions typically take in membership fees?
1-2%
5-10%
15-20%
True or False: Credit cards build your credit score.
True
False
What are Deductions?
Money added to your paycheck for bonuses
Money taken out of your paycheck to pay for benefits and taxes
Money set aside for future investments
What is one way unions can impact wages?
By decreasing wages through collective bargaining
By raising wages through collective bargaining and strikes
By not affecting wages at all
What is Gross Pay?
The amount an employee receives after deductions and taxes
The amount an employee is paid before deductions and taxes
The amount an employee saves from their paycheck
What is Post-Tax Income?
The money left after paying income taxes
The amount an employee earns before any deductions
The money left after paying all other bills and expenses
What is Pre-Tax Income?
The amount an employee receives after taxes
The amount an employee actually takes home
The amount an employee earns before taxes are deducted
How can you best increase your earning potential? (more than one answer is correct)
Spending less and saving more
Investing in stocks and bonds
Having a rare skill set or qualification
According to the sticky wage theory, why do wages tend to lag behind changes in supply and demand?
Because of government subsidies
Because of unions and pay scales
Because of rapid changes in technology
What is the primary benefit of using a credit card?
It helps you save money
It protects you from fraud
It allows you to build credit
What is the 50-30-20 rule in budgeting?
50% of post-tax income for needs, 30% for wants, and 20% for savings
50% of post-tax income for wants, 30% for needs, and 20% for savings
50% of post-tax income for savings, 30% for wants, and 20% for needs.
What is a plan for spending
True or False: In a Roth IRA you put after tax money into this retirement investment.
True
False
The most important years for investing over a 50 year time period are:
The first 10 years
The last 10 years
between 20 and 30 years.
If you want to get rich you should start investing
when you get your dream job
when you get married
today or as soon as you can
True or False: The Vanguard S & P 500 is a good index fund to invest in over time.
True
False
