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PennyDrops Lessons 1-6

Total questions: 30

Worksheet time: 30mins

Name
Class
Date
1.

The "20" in the 20-30-50 framework represents:

a)

Wants

b)

Needs

c)

Savings

d)

Investments

2.

The "30" in the 20-30-50 framework represents:

a)

Wants

b)

Needs

c)

Savings

d)

Investments

3.

The "50" in the 20-30-50 framework represents:

a)

Wants

b)

Needs

c)

Savings

d)

Investments

4.

If Kelly makes $22.50/ hour, and works a typical 40-hour work week, how much should she put into savings?

(a)  

5.

If Kelly makes $22.50/ hour, and works a typical 40-hour work week, how much can she spend on her wants?

(a)  

6.

If Kelly makes $22.50/ hour, and works a typical 40-hour work week, how much can she spend on her needs?

(a)  

7.

This bank account is used to facilitate everyday purchases:

a)

Savings

b)

Chequing

c)

Purchasing

8.

This card allows you to spend money directly from your bank account:

a)

Credit

b)

Debit

c)

Pre-Paid

9.

What is the primary purpose of a credit card?

a)

To earn interest

b)

To borrow money

c)

To store money

10.

What is one of the ways credit card providers make money from cardholders?

4 lines
11.

What are some of the benefits of paying with a credit card?

a)

You can take advantage of reward programs

b)

There are no benefits

c)

You can start building your credit score

d)

You can delay paying for purchases

12.

RRSP stands for​ (a)   ​ (b)   (c)   ​ (d)  

Choose from the below words
Registered
Savings
Retirement
Plan
Regulated
Salary
Pension
Source
Real
13.

RESP stands for ​ (a)   ​ (b)   ​ (c)   ​ (d)  

Choose from the below words
Registered
Education
Savings
Plan
Endowment
Equity
Salary
Pension
Real
Regulated
14.

TFSA stands for​ (a)   ​ (b)   ​ (c)   ​ (d)  

Choose from the below words
Tax
Free
Savings
Account
Tariff
Administration
Fixed
Flat
Sales
Shared
15.

What is the main advantage of a Tax-Free Savings Account (TFSA) in Canada?

a)

Contributions are tax-deductible

b)

It is only available to high-income earners

c)

It offers higher interest rates than other accounts

d)

Withdrawals are tax-free

16.

In Canada, what kind of income tax do we have?

a)

Flat

b)

Progressive

c)

Fixed

d)

Dynamic

17.

In Canada, our federal sales tax is called the:

a)

HST

b)

PST

c)

GST

d)

Income Tax

18.

In Canada, provincial sales tax is called:

a)

HST

b)

PST

c)

GST

d)

Income Tax

19.

Tax Credits:

a)

Reduce the amount of tax you have to pay

b)

Reduce your taxable income

20.

Tax Deductions:

a)

Reduce the amount of tax you have to pay

b)

Reduce your taxable income

21.

What is one reason a person might choose to invest their money instead of putting it into a savings account?

4 lines
22.

If you put $3000 in a savings account at 3.5% interest annually, how much would the account hold in total at the end of the year?

(a)  

23.

If you put $3000 in a savings account at 3.5% interest annually, how much would the account hold in total after 5 years? (Round to the nearest dollar)

(a)  

24.

Match the investment types with their definitions

a)

Stocks

1.

Partial ownership of a company

b)

Bonds

2.

A debt security

c)

GIC

3.

A locked deposit that will gain interest

d)

Real Assets

4.

Physical items like gold or property

25.

Investments with higher returns also possess​ (a)   ​ risk

Choose from the below words
higher
lower
some
no
26.

Investments with lower returns also possess​ (a)   ​ risk

Choose from the below words
higher
lower
some
no
27.

What is the difference between private and public companies?

a)

You can purchase stock in a private company but not a public one

b)

Public companies pay more corporate tax than private ones

c)

A public company's securities are traded on the stock exchange

d)

Private companies become public after 20 years of operation

28.

Reorder from lowest risk to highest

a)

Bond/ GIC

b)

Mutual Fund/ ETF

c)

Stock

1)
2)
3)
29.

If you invest $1000 at $20/ share, how many can you buy?

(a)  

30.

If you invest all of your $1000 at $20/ share, how much should you sell them for if you want a 35% return?

(a)