WorksheetsFinancial Literacy Quiz
Total questions: 25
Worksheet time: 19mins
What is the main objective of budgeting?
Increase expenses
Ensure that expenses do not exceed income
Avoid financial planning
Spend all income
Which of the following is NOT a typical category in budgeting?
Housing
Groceries
Transportation
Gambling
What is the expectation when investing money?
Keep the money inactive
Generate income or benefits over time
Spend money immediately
Lose money
Which of the following is a form of debt?
Income
Investment
Mortgage
Savings account
What is interest?
The amount saved
The cost of borrowing money
The principal amount loaned
The total amount of the debt
What is the purpose of saving?
To avoid financial security
To increase debt
To set aside money for future use or emergencies
To spend money immediately
What value is associated with our desire for belonging and relationship?
Financial Values
Physical Values
Social Values
Internal Values
What do financial values emphasize?
Lack of organization
Financial planning and saving
Spontaneous spending
Impulsive decisions
What is the main purpose of a savings account?
Invest in stocks
Save money for future use
Pay off debts
Spend on luxury items
Which of the following is considered a liquid asset?
Real estate
Stocks
Cash
Gold
What is a common reason for creating an emergency fund?
Invest in high-risk stocks
To cover unexpected expenses
Buy luxury items
Pay long-term debts
Which of the following is a fixed expense?
Groceries
Entertainment
Rent
Clothing
Why is it important to keep track of your expenses?
To ensure you don't spend more than you have
It is not important
To show off to friends
To make your parents happy
What is a budget?
A plan to spend as much money as possible
A detailed plan to save, spend, and invest your money
A list of things you want to buy
A record of past purchases
What can you do to avoid debts?
Spend more money than you earn
Use all your savings to buy expensive things
Only use the money you have, instead of borrowing
Borrow money from many different people
What is a good habit to start saving money?
Buy everything you want
Wait for a sale to buy something
Save a little money regularly
Only save money on your birthday
What is the purpose of a retirement fund?
Save for future living expenses after retirement
Buy a new car
Pay for a vacation
Invest in high-risk stocks
Which of the following is a variable expense?
Mortgage
Car payment
Utility bills
Insurance premium
Why is it important to keep track of your expenses?
To ensure you don't spend more than you have
It is not important
To show off to friends
To make your parents happy
What can you do to avoid debts?
Spend more money than you earn
Use all your savings to buy expensive things
Only use the money you have, instead of borrowing
Borrow money from many different people
Budget
Anything that you might incur an expense for
Is a spending plan for managing your money that includes income and expenses
All expenses deducted from income before net pay can result.
Income after all deductions have been paid.
Often early information used to compare all future information.
(a)
The favoring of existing beliefs when given new information.
(a)
Valuing items that we possess more than those that do not belong to us.
(a)
The tendency to follow the crowd, when everyone appears to be doing something.
(a)
