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Gotham Scholars Personal Finance Assessment

Total questions: 10

Worksheet time: 7mins

Name
Class
Date
1.

It’s smart to start saving and investing money when you’re older and at the height of your career.

a)

TRUE

b)

FALSE

2.

Which term matches this definition best "The ability to manage finances in an educated and thoughtful manner."

a)

Needs

b)

Goal Setting

c)

Financial Literacy

d)

Budgeting

3.

Which term best matches the definition "Expenses that are not essential for to live and work"

a)

Variable Expenses

b)

Wants

c)

Emergency Expenses

d)

Once a year Expenses

4.

What is a 401(k) for?

a)

Emergency

b)

Retirement

c)

Buying A Car

d)

Building Credit

5.

What is the purpose of FDIC, which stands for "Federal Deposit Insurance Corporation"?

a)

To regulate stock market trading (meaning person will not loose money invested in stocks)

b)

To insure deposits in banks against loss in case of bank failure (meaning person will not loose money deposited with a bank)

c)

To manage the national debt (meaning the country's national debt will not become too large)

6.

What are some safe places to safeguard your money? (select all that apply)

a)

Money Market Funds by large financial institutions

b)

A Federal Deposit Insurance Corporation (FDIC)-insured financial institution

c)

Treasury notes issued by the U.S. Department of the Treasury

d)

Keeping it in a locker at home

7.

Using a credit card is the best way to deal with unexpected expenses.

a)

TRUE

b)

FALSE

8.

____________________ income is the money a person has after taxes and deductions

a)

Net

b)

Gross

9.

Why is it important to maintain a good credit score? (select all that apply)

a)

To get better interest rates on loans

b)

To help you get approved for an apartment

c)

To help lower the amount of taxes you owe

d)

Because it can take a long time to raise a low credit score

10.

Inflation is....

a)

An increase in the price level of goods and services in an economy over time

b)

A decrease in the price level of goods and services in an economy over time

c)

A stable price level in an economy

d)

A sudden increase in the value of the stock market