Worksheets3E: Understanding Personal Finance Basics
Total questions: 10
Worksheet time: 5mins
Which of the following is an example of a fixed expense?
Monthly rent payment
Grocery shopping
Entertainment costs
Clothing purchases
What is the main difference between a need and a want?
Needs are optional, wants are essential
Needs are essential for survival, wants are not
Wants are always more expensive than needs
Needs are only related to food
Which of the following best describes a flexible expense?
An expense that stays the same every month
An expense that can change from month to month
An expense that is paid once a year
An expense that is always unnecessary
Which document would you use to determine your net worth?
Financial statement
Shopping list
Calendar
Resume
Which of the following is a method of money management?
Budgeting
Guessing expenses
Ignoring bills
Spending all income
If your total assets are 10,000 and your total liabilities are 4,000, what is your net worth?
$14,000
$6,000
$4,000
$10,000
You want to save for a new laptop in six months. Which financial planning method would help you achieve this goal?
Creating a savings plan
Ignoring your expenses
Spending more on entertainment
Not tracking your income
A family is trying to reduce their monthly expenses. Which of the following is a flexible expense they could adjust?
Mortgage payment
Utility bills
Car insurance premium
Property taxes
If you want to track your spending and make sure you do not overspend, which tool should you use?
Budget
Credit card
Social media
Calendar
Which of the following best explains why distinguishing between wants and needs is important in financial planning?
It helps prioritize spending on essentials before non-essentials
It makes shopping more fun
It increases the amount of money you can borrow
It eliminates the need for a budget
