WorksheetsEconomics: Financial Literacy
Total questions: 20
Worksheet time: 10mins
What does a "budget" help you do?
Spend all your money
Track your income and expenses
Invest in the stock market
Save money for a vacation
What is "saving money"?
Spending all of your money immediately
Keeping money for future needs or emergencies
Investing in stocks
Borrowing money from someone
What is the purpose of a "bank account"?
To store your money safely
To invest in the stock market
To lend money to others
To hide your money from the government
Which of the following is an example of a "fixed expense"?
Buying a new phone
Monthly rent or mortgage payment
Buying clothes
Going out to eat
What is the "interest" on a loan?
The amount of money you borrow
The amount of money you have saved
The fee paid to the lender for borrowing money
The cost of goods and services
What is "credit"?
The ability to borrow money and pay it back later
A savings account with no interest
The amount of money in your wallet
A type of investment that grows over time
What does it mean to "invest" money?
To spend all your money on things you need
To put money into something in hopes it will grow or earn more
To keep your money in a savings account forever
To borrow money to buy things now
What is a "credit score"?
A score given by your bank for saving money
A number that shows how well you manage debt and credit
A measure of how much money you have saved
The score you get on your tax return
What does the term "debt" mean?
Money you earn from a job
Money you owe to others
Money you save in a bank account
Money you spend on food and entertainment
Why is it important to have an "emergency fund"?
To be able to buy a new car
To pay for unexpected expenses like medical bills or car repairs
To go on vacation
To invest in the stock market
What is "compound interest"?
Interest that is calculated only on the initial amount of money
Interest that is calculated on both the principal and the interest already earned
The fee for borrowing money
A type of tax
What is the "stock market"?
A place where you can exchange goods and services
A marketplace where people buy and sell shares of companies
A store that sells stocks of food and supplies
A government office that controls money
What is "inflation"?
The increase in the prices of goods and services over time
The value of money in your bank account
A decrease in the amount of money you owe
The money you make from your job
What is the main goal of "saving" money?
To spend it on fun activities
To have money available for future needs and emergencies
To help other people spend money
To make money by lending it out
What is "a paycheck"?
A loan from the bank
A document showing how much you earn from a job
Money you borrow from your friends
A form you fill out to file your taxes
What is the difference between a "need" and a "want"?
Needs are things you can live without; wants are things you must have
Needs are things you must have to live; wants are extra things that are nice to have
There is no difference
Needs are things you can buy on credit; wants are things you cannot afford
What is "insurance"?
Money you owe to a company
A form of savings for your future
A way to protect yourself from financial loss in case of accidents or emergencies
A type of investment for growing your wealth
What is a "savings account"?
A place where you can invest money in the stock market
An account where you keep money safe and can earn interest over time
A type of insurance plan
A place where you can borrow money
What does the term "diversification" mean in investing?
Putting all your money in one investment to get the highest return
Spreading your money across different types of investments to reduce risk
Borrowing money to invest in one company
Saving all your money in a savings account
What is a "loan"?
A gift of money from the government
Money you borrow that must be paid back with interest
Money you give away to help others
Money saved in a bank account
