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WorksheetsFinancial Literacy Intro Assessment
Total questions: 35
Worksheet time: 17mins
What is financial literacy?
Understanding how to play sports
The knowledge to make informed financial decisions
Knowing the history of different currencies
Learning how to write checks
Which of the following is NOT a key component of financial literacy?
Budgeting
Saving
Investing
Gossiping
How can being financially literate help an individual?
It increases financial security
It decreases the need for education
It eliminates the need for savings
It guarantees getting a job
What is a budget?
A list of friends
A plan for managing income and expenses
A type of bank account
A score for your financial habits
What does saving money mean?
Spending all your income
Keeping a portion of your income for future needs
Donating all your income to charity
Investing only in stocks
Why is it important to learn about investing?
To make quick money without risks
To grow your wealth over time
To spend all your savings
To avoid financial responsibility
Which of these outcomes become more likely for someone with strong personal finance skills? Check all that apply.
A person can avoid opportunity cost.
A person can be more prepared to meet basic needs.
A person can avoid financial decision-making
A person can spend money thoughtfully to accumulate assets.
A person can spend wisely to avoid financial problems.
A single person will have less income tax withheld than a married employee.
True
False
What is a credit score?
A score for determining an athlete’s performance
A number that shows how likely you are to repay borrowed money
A type of bank account number
A score given to a house before it is sold
Which of the following is a type of debt?
Grocery receipt
Credit card balance
Birthday gift
Bank savings
What is the purpose of interest rates on loans?
To reward borrowers
To keep track of how much money you have
To make the borrowed money more expensive to repay
To reduce debt
How does having a low credit score affect you?
It makes it easier to borrow money
It can result in higher interest rates or loan denials
It has no impact on borrowing
It guarantees you a loan
Which of these is a consequence of not paying your debts on time?
Lower credit score
Increased savings
More loan offers
Free gifts
What type of debt is a student loan?
Unsecured debt
Secured debt
Revolving debt
Non-repayment debt
Which action can help improve your credit score?
Ignoring your bills
Paying your bills on time
Applying for many credit cards at once
Closing all your bank accounts
What should you do if you are struggling with debt?
Ignore it and hope it goes away
Seek advice on how to manage it
Take out more loans
Spend all your money quickly
What is a mortgage?
A special type of savings account
A loan take to buy a house
A place to store furniture
A loan taken to buy a house
Which of the following factors can influence housing prices?
Number of pets
The weather
Neighborhood quality
Favorite color of the house
What is a down payment?
The amount of time it takes to buy a house
A part of the price paid upfront when buying a house
The total amount paid for a house
A fee paid for maintenance of the house
What is the first step in the home buying process?
Find a real estate agent
Determine your budget and needs
Picking out furniture
Closing on the house
Why is it important to get pre-approved for a mortgage?
To know how much you can afford to borrow
To make the process more complicated
To sell a house
To reduce your income
Which of the following can affect your ability to get a mortgage?
Your credit score
Your age
Your parents income
The number of pets you have
What is an escrow account?
An account for savings
A place to keep loan payments for taxes and insurance
A credit card account
A type of bank investment account
What does it mean to "shop around" for a mortgage?
To only look for one bank
To compare different mortgage options
Look for a job
Find the cheapest house
Which is a type of loan?
A student loan
Dr. Wiley lottery ticket
Bank Deposit
Debit Card
What is a common condition of a loan?
You receive the loan and don’t have to repay it
You must pay back the loan with interest
You only pay back what you borrowed
If you donate it, you don't have to pay it back.
What type of loan is specifically for buying a car?
Mortgage
Personal loan
Auto loan
Business loan
What does it mean to have a secured loan?
It is guaranteed to be approved
It is always interest-free
It requires no paperwork
It is backed by collateral, like a house or car
Why is it important to compare different loan offers?
To find the best option that fits your needs
To ensure you get the highest interest rate
To find the most complicated loan
To borrow from every lender possible
What is the purpose of a loan application?
To learn about the lender
To buy a car
To buy a house
To provide information to determine if you qualify for a loan
What is the purpose of taxes?
To keep a record of your spending
To pay for public services like roads and schools
To make the government rich
To save for a house
What is a tax deduction?
A fee you pay every month
An amount you can subtract from your total income to lower your taxes
A new type of tax you must pay
A way to add more money to your income
What type of tax is taken out of your paycheck?
Income Tax
Sales Tax
Property Tax
School Tax
What is a tax credit?
A type of savings account
A fee charged by the government
An extra payment you make
A reduction in the amount of tax you owe
What is a W-2 form?
A form used for business expenses
A type of loan application
A report of your annual wages and taxes withheld by your employer
A savings account form
