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Personal Financial Literacy Final 2025

Total questions: 85

Worksheet time: 2hrs 42mins

Name
Class
Date
1.

The 50/30/20 rule describes how much a person should be budgeting for their needs, wants, and savings.

Which of the following expenses is a need according to the 50/30/20 rule?

a)


gym membership

b)

travel fund

c)

rent or mortgage

d)

cable TV subscription

2.

What should 30% of your income go towards, if you are following the 50/30/20 rule?

a)
Wants
b)

Needs

c)
Investments
d)
Savings
3.

According to the 50/30/20 rule, what percentage of your income should you allocate to

savings?

a)
10%
b)
30%
c)
50%
d)
20%
4.

You have a monthly income of $2,500. You plan to follow the 50/30/20 rule for budgeting.

How much of your monthly income can you spend on wants?

(a)  

5.

You have a monthly income of $4,000. You plan to follow the 50/30/20 rule for budgeting.

How much of your monthly income can you spend on needs?

(a)  

6.

You have a monthly income of $4,000. You plan to follow the 50/30/20 rule for budgeting.

How much of your monthly income should you save?

(a)  

7.

The 50/30/20 rule describes how much a person should be budgeting for their needs, wants, and savings.

Which of the following expenses is a savings according to the 50/30/20 rule?

a)
Dining out expenses
b)
Retirement account contributions
c)
Utility payments
d)
Grocery bills
8.

Why should you pay attention to the per unit pricing when grocery shopping?

a)
To find the most expensive items.
b)
To ignore sales and discounts.
c)
To focus only on brand names.
d)
To ensure you get the best value for your money.
9.

The 50/30/20 rule describes how much a person should be budgeting for their needs, wants, and savings.

Which of the following expenses is a want according to the 50/30/20 rule?

a)

health insurance premium

b)


cable TV subscription

c)

car loan payment

d)

internet service

10.

The 50/30/20 rule describes how much a person should be budgeting for their needs, wants, and savings.

Which of the following expenses is a want according to the 50/30/20 rule?

a)

car insurance or maintenance

b)

groceries or household items

c)

dining out or ordering takeout

d)

savings or investments

11.

Your goal is to have four months worth of expenses in the emergency fund.

How much money should you have in your emergency fund to meet your goal?

(a)  

12.

How much should you save in your emergency fund savings, according to most financial experts?

a)
One month's worth of living expenses
b)
Twelve months' worth of living expenses
c)
Three to six months' worth of living expenses
d)
A fixed amount of $5,000
13.

You are building your emergency fund and are writing down your monthly expenses:

Your goal is to have four months worth of expenses in the emergency fund.

How much do you need to have in your emergency fund?

(a)  

14.

At his recent car inspection, Jarrett was told that his tires are getting worn and should be replaced in the near future. A set of new tires for Jarrett's truck cost $1,800 and Jarrett plans on saving equal amounts each month for six months.

How much does Jarrett need to save each month?

(a)  

15.

What does "paying yourself first" mean in personal finance?

a)
It refers to taking out loans before making any payments.
b)
It suggests investing only in high-risk stocks without saving.
c)
It means to spend all your income before saving.
d)
It means to prioritize saving and investing a portion of your income before other expenses.
16.

Isaac's car insurance costs $2,400 per year. He pays it in one lump sum every January. He has 12 months until his next payment. This year, he wants to start setting aside equal amounts every month to save for the bill.

How much money will Isaac need to save each month?

(a)  

17.

Organize these into Needs, Wants, & Savings

Categorize the following

Rent

Electricity Bill

Car Payment

Hobbies

Eating out

Shopping

Travel

Entertainment

College Fund 529b

Emergency Fund

401K

IRA

403b

Groceries

Insurance

Needs
Wants
Savings
18.

Which of these boxes of cereal has the LOWEST unit price?

a)

Cereal A, which costs $3.20 for a 24 oz. box

b)
Cereal B, which costs $5.00 for a 32 oz. box
c)
Cereal C, which costs $2.50 for a 10 oz. box
d)
Cereal D, which costs $4.50 for an 8 oz box
19.

Which description is most accurate for a Zero-Based Budget?

a)
You put every dollar of your net pay into a budget category each month
b)
You spend your checking account balance down to $0 every month
c)
You spend your saving account balance down to $0 every month
d)
You pay every one of your debts down to $0 every month
20.

Match the following:

a)

Better interest rates, lower fees, more personal customer service. Limited membership

1.

credit union

b)

Real buildings where you can get help face-to-face, friendly and local atmosphere.

2.

traditional bank

c)

Lots of branches and ATMs, full range of banking services.

3.

commercial bank

d)

Higher interest rates on savings, lower fees, no in person service

4.

online banking

21.

Match the following:

a)
  • Easy access to your money; usually no limit on transactions.

  • Low or no interest, which means your money doesn't grow much.

1.

checking/debit

b)
  • Higher interest rates help your money grow; great for saving for goals. Limited number of withdrawals.

2.

savings

c)
  • Higher interest rates;

  • Higher minimum balance requirements; limited transactions compared to checking accounts.

3.

money market

d)

Higher interest rates compared to other accounts; fixed interest rates no matter change in economy. Penalty for early withdrawal.

4.

certificate of deposit

22.

Banks offer many types of accounts, each with a different use and purpose.

Which type of bank account would you typically use for everyday transactions?

a)

checking account

b)

money market account

c)

savings account

d)

certificate of deposit (CD)

23.

Certificate of deposit (CD) accounts offer a wide range of benefits, but also have some drawbacks.

Which one of these is a drawback of CDs?

a)

lower interest rates than most other bank accounts

b)

limited number of free withdrawals

c)

can decrease in value if stock market drops

d)

no access to your funds for a period of time

24.

Identify the sections of the check.

It’s important to know your routing and account numbers because you will need them to set up automatic payments.

Look at the check below and match each label with its correct section.

25.

Your bank statement shows a transaction labeled "ACH".

What does this acronym mean?

a)
Account Clearing House transaction
b)
Automated Credit Handling transaction
c)
Automated Cash Handling transaction
d)
Automated Clearing House transaction
26.

Looking at the statement, and identify any debits.

27.

Looking at the statement, and identify any credits.

28.

You see a “pending” label beside a transaction you made yesterday.

What does that mean?

a)
The transaction has been completed successfully.
b)
The transaction is not yet completed and is still being processed.
c)
The transaction is canceled and will not be processed.
d)
The transaction is awaiting your confirmation to proceed.
29.

Which of these is an automatic payment?

a)
ACH - Elite Gym membership
b)
Visa debit - Ocean Bistro
c)
Check deposit #1234
d)
Cash withdrawal at ATM
30.

Match the following terms to their definition:

a)

A valid, government-issued ID such as a driver’s license, state ID, or passport.

1.

Identification

b)

An nine-digit number that tracks wages and benefits to the government, and for other identification purposes

2.

Social Security Number

c)

This can be a utility bill, lease agreement, or a recent statement with your current address.

3.

Proof of Address

d)

Some banks require you to have an initial deposit. This could be as little as $5 or up to several hundred dollars depending on the bank.

4.

Opening Deposit

e)

A recent bank statement showing your account balance.

5.

Account Statement

31.

Match the agency to its correct responsibility.

32.

If you write too many checks and end up with a negative bank balance, you have ​ (a)   your account.

Choose from the below words
overdrawn
credited
added into
reconciled
33.

Checks that you have written but have not yet been paid by your bank are called ​ (a)   checks.

Choose from the below words
outstanding
cancelled
cleared
voided
34.

Real interest rate: The true measure of growth Your real interest rate is what tells you if your money is genuinely growing after factoring in inflation. It's simple:

​ (a)   - ​ (b)   == ​ (c)  

Choose from the below words
Interest rate you earn
Inflation rate
Real interest rate
35.

You have a savings account that earns an annual interest of 3%. You hear on the news that the current inflation rate is 2%.

What is the estimated real interest rate of your savings account?

a)

-1%

b)

1%

c)

2%

d)

3%

36.

Match the following

a)

Fully Banked

1.

Individuals with access to a full range of financial services

b)

Underbanked

2.

Individuals with limited access to financial services

c)

Unbanked

3.

Individuals without any access to financial services

d)

Brick-and-Mortar Bank

4.

Traditional banks with physical locations

e)

Digital Bank

5.

Online-only financial institutions

37.

If your returns (or interest rate) are 8% a year, approximately

how many years does it take for your principal investment to double using the rule of 72.

(a)  

38.

Using the rule of 72, you would need an interest rate of (a)   % to double $3500 in 10 years.

39.

It will take (a)   years for $4000 to double with a 4% interest rate.

40.

Find the total amount after four years if the interest is compounded annually.

Principal = $7,000

Rate of Interest= 20% per year

Total Amount= ?

Round your answer to the nearest hundredth if needed.

You do not need to put a dollar sign next to your answer.

(a)  

41.

Find the total amount after five years if the interest is compounded semi-annually.

Principal = $6,000

Rate of Interest= 10% per year

Total Amount= ?

Round your answer to the nearest hundredth if needed.

You do not need to put a dollar sign next to your answer.

(a)  

42.

Find the total amount after five years if the interest is compounded quarterly.

Principal = $5,000

Rate of Interest= 8.5% per year

Total Amount= ?

Round your answer to the nearest hundredth if needed.

You do not need to put a dollar sign next to your answer.

(a)  

43.

Find the total amount after five years if the interest is compounded quarterly.

Principal = $6,000

Rate of Interest= 8.5% per year

Monthly Deposit=$100

Total Amount= ?

Round your answer to the nearest hundredth if needed.

You do not need to put a dollar sign next to your answer.

(a)  

44.

Use the word problem to match the following:

Jackson invested $3000 in a mutual fund that earned 4.5% compounded quarterly. How much would Mark's total be if he left it in for 10 years?

B=p(1+rn)ntB=p\left(1+\frac{r}{n}\right)^{nt}

a)

B

1.

$4689.24

b)

p

2.

$3000

c)

r

3.

.045

d)

n

4.

4

e)

t

5.

10

45.

Categorize the following advantages and disadvantages:

Categorize the following

Property value appreciates

Build equity

Property taxes

Regular maintenance

Ability to customize

Mortgage Interest

Deposits and fees

Limited maintenance

and upkeep

No property taxes

No risk of falling property values

Restrictions on activities, per

lease agreement

No income tax deductions

Advantage of Owning
Disadvantage of Owning
Advantage of Renting
Disadvantage of Renting
46.

​ (a)   is insurance a person purchases to protect the contents and structure of a home.

Choose from the below words
Homeowners insurance
Auto insurance
Health insurance
Travel insurance
Renter's Insurance
47.

​ (a)   is the difference between the appraisal and the balance of the mortgage loan.

Choose from the below words
Equity
Depreciation
Interest
Principal
48.

Match the following:

a)

The owner of property that is leased

or rented to another.

1.

landlord

b)

A person who rents property from a landlord.

2.

tenant

c)

A document outlining the terms of a rental agreement.

3.

lease agreement

d)

Insurance that protects a tenant's personal property.

4.

renter's insurance

49.

Alisyn's home was recently appraised for $300,000. She owes $200,000 on the her mortgage. How much equity does she currently have?

(a)  

50.

Financial experts recommend that when you rent, the amount of rent you pay should not be more than (a)   of your take home pay.

Choose from the below words
10% of your take home pay
30% of your take home pay
50% of your take home pay
70% of your take home pay
51.
What is an security deposit?
a)
It is money to be used to fix anything that tentant as broken in the apartment
b)
Money to secure the apartment
c)
Money for police services
d)
Money for a rental cop
52.

Use the 30% Rule.

If a person makes about $4000/month, what is the most they should spend on rent?

(a)  

53.

Categorize the requirements for Owning vs. Renting

Categorize the following

Getting pre-approval for loan

Down payment

Closing costs

Home Owner's Insurance

PMI

HOA Fees

Security Deposit

Application Fee

Pet Deposit

Property Taxes

Home Maintenance Costs

Occupancy Limits

Lease Agreement

Renter's Insurance

Maintenance Requests

Credit/Criminal Background Check

Owning
Renting
54.

You have a 7/1 ARM mortgage.

How long before the interest rate can start changing?

a)
10 years
b)
5 years
c)
3 years
d)
7 years
55.

ARM (Adjustable Rate Mortgage) loans typically have two numbers as part of their name. These numbers have a meaning.

In a 5/6 ARM loan, what does the 6 represent?

a)
The 6 signifies the number of payments made before the first adjustment.
b)
The 6 indicates the maximum interest rate allowed over the life of the loan.
c)
The 6 represents the total number of years for the loan term.
d)
The 6 represents the number of months between rate adjustments after the initial fixed period.
56.

There are many mortgage types, but a 30-year fixed mortgage is the most popular one.

Which of the following is a drawback of a 30-year fixed mortgage?

a)
Higher interest costs over the loan term.
b)
No requirement for a down payment.
c)
Flexibility to change interest rates after a few years.
d)
Lower monthly payments compared to other mortgage types.
57.

When it comes to fixed loans, the 15-year and the 30-year mortgage are the most common choices.

What is a benefit of a 15-year fixed mortgage?

a)
Higher monthly payments and slower equity building.
b)
Longer repayment terms with no benefits.
c)
No impact on interest rates or equity.
d)
Lower interest rates and faster equity building.
58.


There are many adjustable rate mortgages. A few examples are 5/6, 7/1, 7/6, 10/1, and 10/6. In a 10/6 ARM the 10 means the mortgage is fixed for the first​ (a)   ​ (b)   , and will eventually adjust after ​ (c)  

Choose from the below words
10
years
months
10%
6 months.
6%
6 years.
59.

A typical down payment on a home is 20%. What would you have to save for a down payment if the home you wanted to buy was $250,000?

(a)  

60.

Match the following:

a)

Closing Costs

1.

Fees associated with finalizing a property purchase

b)

Inspection Fees

2.

Costs incurred for evaluating the condition of a property

c)

Security Deposit

3.

Amount paid upfront to secure a rental property

d)

Application Fee

4.

Fee charged for processing a rental application

e)

First Month's Rent

5.

Payment made for the initial month of tenancy

61.

Use the chart to assist you in solving this question:

The Perez family found the perfect house for $200,000. They made a down payment of 20%. They will finance the rest over 30 years at an interest rate of 7.5%. What is their monthly payment?

Round your answer to the nearest cent.

(a)  

62.

Use the chart to assist you in solving this question:

The Perez family found the perfect house for $200,000. They made a down payment of 20%. They will finance the rest over 30 years at an interest rate of 7.5%. How much did they pay over the lifetime of the loan?

Round your answer to the nearest whole dollar.

(a)  

63.

Use the chart to assist you in solving this question:

The Perez family found the perfect house for $200,000. They made a down payment of 20%. They will finance the rest over 30 years at an interest rate of 7.5%. How much did they pay in interest over the lifetime of the loan?

Round your answer to the nearest whole dollar.

(a)  

64.

Jaiden is purchasing her first home. She has offered $225,000 for the house, and it has been accepted. Her closing costs will total $5,000. She will make a down payment of $45,000 and finance the rest of the costs over 25 years at an interest rate of 7%. Find her monthly payment using the TVM Solver.

Round your answer to the nearest cent.

(a)  

65.

Match the following terms:

a)

mortgage

1.

a loan used to purchase a home

b)

private mortgage insurance

2.

insurance that protects lenders against default

c)

home equity loan

3.

a loan that allows homeowners to borrow against their equity

d)

fixed-rate mortgage

4.

a mortgage with a fixed interest rate

e)

adjustable-rate mortgage

5.

a mortgage with an interest rate that can change

66.

A house is purchased for $250,000 including closing costs. A down payment of $25,000 is applied. The mortgage will be over 25 years at an interest rate of 6.5%. Use the TVM Solver to find the monthly payment.

Round your answer to the nearest cent.

(a)  

67.
Question Image

Use the chart to match the following monthly payments to the mortgage terms:

a)

$150,000

7%, 25 years

1.

$1,060.50

b)

$170,000

6%, 15 years

2.

$1,434.80

c)

$175,000

5%, 10 years

3.

$1,856.75

d)

$200,000

8%, 20 years

4.

$1,672

e)

$225,000

6.5%, 30 years

5.

$1,422

68.

The shorter your term length, the ​ (a)   your monthly payments, and the ​ (b)   the total interest you will pay.

Choose from the below words
higher
lower
69.

A number assigned to a person that indicates to lenders their capacity to repay a loan is called a (a)   .

Choose from the below words
Credit score
Loan terms
Lender
Credit history
70.

The price the manufacturer is suggesting the vehicle

be sold for.

(a)  

Choose from the below words
MSRP: “Manufacturer's Suggested Retail Price”

Commission

Book Value

71.
You are required by law to have car insurance.  
a)
True
b)
False
72.
Paying for oil, gas, maintenance, and repairs are all examples of
a)
operating costs for a vehicle.
b)
loan payments for buying a vehicle.
c)
vehicle costs that depreciate.
d)
the purchase price of a vehicle.
73.

Calculate the monthly payment for a $50,000 principal auto loan at 4.99% APR for 4 years (48 payments).

(hint: use the TVM Solver)

Round your answer to the nearest cent.

(a)  

74.

Calculate the monthly payment for a $20,000 principal auto loan at 8.99% APR for 5 years (60 payments).

(hint: use the TVM Solver)

Round your answer to the nearest cent.

(a)  

75.

Calculate the monthly payment for a $15,000 principal auto loan at 6.99% APR for 5 years (60 payments).

(hint: use the TVM Solver)

Round your answer to the nearest cent.

(a)  

76.

The Schumer box is a table that appears in credit card agreements.

What specific information is required to be displayed in the Schumer box?

Choose 1 answer:

a)

Minimum score needed to qualify for the card

b)

Rewards and points programs

c)

APR, annual fees, grace period, and other penalties and fees

77.

The Schumer box is a table that appears in credit card agreements.

Who is required to provide the Schumer box?

Choose 1 answer:

a)

  • All credit card issuers

b)

  • Anyone who is applying for a credit card

c)

  • The federal government

78.

Match the following:

a)

APR

1.

the annual % of principal you pay

b)

grace period

2.

how long a person has to pay the balance

c)

foreign transaction fee

3.

fee charged for use in other countries

d)

annual fee

4.

fee paid for having the card

e)

late fee

5.

amount charged when you miss a payment

79.

A Schumer box lists the main information about a credit card, such as its APR, grace period, and minimum payment.

What does the term minimum payment mean?

Choose 1 answer:

a)

It is the smallest amount you can pay each month to keep your account in good standing.

b)

It is the amount you need to fully pay off your balance each month.

c)

It is the annual fee associated with your credit card.

80.

Use the Schumer Box to answer the following question:

Carson decided to get a cash advance using his Capital One Card. How much would he be charged if he took out $200?

(a)  

81.

Use the Schumer Box to answer the following question:

Ryan decided to get a cash advance using his Capital One Card. How much would he be charged if he took out $500?

(a)  

82.

Use the Schumer Box to answer the following question:

Nan wanted to transfer some old debt over to her Capital One Card. She waited 100 days to do this after she opened her account. How much would she be charged if she transferred an additional $5,000 over to her Capital One Card?

(a)  

83.

Brayde has a balance of $4000 and was not able to pay it in full.

What was the monthly interest added to his debt if his APR is 22.99%?

Round your answer to the nearest hundredth.

(a)  

84.

Erika has a balance of $5000 because she went to the mall to get a brand new wardrobe and she put it on her credit card.

What monthly interest will be added to her debt if her APR is 28.24%?

Round your answer to the nearest hundredth.

(a)  

85.

Match the credit terms to their definition.