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How Financially Fit Are You?

Total questions: 8

Worksheet time: 4mins

Name
Class
Date
1.

What does the 50/30/20 rule refer to?

a)

50% savings, 30% spending, 20% investing

b)

50% needs, 30% wants, 20% savings/debt repayment

c)

50% rent, 30% food, 20% transport

d)

50% income, 30% tax, 20% bonus

2.

Which of the following is considered a “need” in budgeting?

a)

Netflix subscription

b)

Groceries

c)

New clothes for a party

d)

Concert tickets

3.

What is compound interest?

a)

Interest that decreases over time

b)

Interest earned on both the initial amount and the interest already earned

c)

Interest that only applies to loans

d)

A type of tax on savings

4.

You’re using a budgeting app. What’s the first thing you should do?

a)

Choose a cute theme

b)

List your income and expenses

c)

Link it to your TikTok

d)

Set a goal to become a millionaire next week

5.

Which of these is the safest way to build an emergency fund?

a)

Investing in stocks

b)

Saving in a high-interest savings account

c)

Buying cryptocurrency

d)

Lending money to friends

6.

What does “diversifying your investments” mean?

a)

Putting all your money into one stock

b)

Spreading your money across different types of investments

c)

Only investing in foreign markets

d)

Avoiding risky investments

7.

If you spend more than you earn every month, what will happen?

a)

You’ll save more

b)

You’ll go into debt

c)

Your credit score will improve

d)

You’ll earn interest

8.

What is the purpose of a budget?

a)

To limit your freedom

b)

To help you plan and control your spending

c)

To track your taxes

d)

To calculate your net worth