WorksheetsIntroduction to Personal Finance
Total questions: 30
Worksheet time: 30mins
What do you think a personal finance class includes?
Fixed expenses are...
costs that are necessary and stay the same amount each month
costs that are necessary, but the amount that you spend differs from month-to-month
costs that are easily changed, reduced, or eliminated.
income not spent, but rather putting money aside for big purchases, emergencies, the future, etc.
What is an example of a fixed expense?
food
electric bill
auto insurance
clothing
simple
Cost of credit expressed as a percentage
Period
Interest
annuity
Capital
This is a method of saving with a slightly higher interest rate because the saver commits to a longer saving period for a set amount deposited.
Bond
Stock
HSA
This is an obligation of repayment, usually including principal plus interest, any time you owe someone money.
annuity
credit
risk
An emergency fund should have savings in excess of
one month's income
three month's income
three month's fixed expenses
two month's rent
The safer an investment, the more likely it is to have a higher rate of return.
True
False
What is a credit score?
a three-digit score that tells lenders how much money you make each year.
A five-digit numerical rating that reflects how likely you are to repay your debt.
A three-digit numerical rating that reflects how likely you are to repay your debt.
A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts
Which of these terms could be used to describe debt in the form of a mortgage or car loan? (Choose all that apply.)
secured
unsecured
revolving
installment
Student loans can be subsidized (by the government) or unsubsidized, and cannot be discharged with bankruptcy.
true
false
Which budget item will most likely take up the largest percentage of your income at 25-30%?
transportation
housing
groceries
saving/investing
A plan for how to manage your money is called
portfolio
budget
register
investment plan
Is it a good idea to make a list before going grocery shopping to stick to your budget?
Yes make a list
No
Which is the best definition of personal financial planning?
spending, saving, and investing money to enjoy life and achieve financial security.
Listing ways to achieve your short-term and long-term financial goals.
thinking about your attitudes toward money.
using available sources of financial information.
Which term refers to things you want to accomplish?
budgets
risks
expenses
goals
which term refers to the risk of a general increase in the cost of goods and services?
inflation risk
interest rate risk
liquidity risk
income risk
Which term refers to the risk you may have to withdraw your savings or investments?
inflation risk
interest rate risk
liquidity risk
income risk
Which is NOT a way to limit your financial risk?
Buy insurance
Put all your money in one account
Choose another alternative
Diversity your assets
Which term refers to giving up something by making one choice instead of another.
income risk
personal risk
liquidity risk
opportunity cost
What is one effect of spending more money than you receive as income?
a deduction
a deficit
a surplus
earnings
For federal income taxes, which of the following are counted as income (choose all that apply)
discharged debt
interest earned on savings
interest paid on student loans
property taxes
