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Personal Finance Formative

Total questions: 15

Worksheet time: 8hrs 30mins

Name
Class
Date
1.

Jacob works at a local smoothie store. He goes to college full time and works part-time. Jacob averages 25hours per week at the smoothie store and makes $9.50 per hour. What type of income best describes Jacob?

a)

Commission

b)

Wage

c)

Salary

d)

None of the above

2.

______ is required for a household to be able to provide basic needs, such as housing, transportation, groceries, etc.

a)

Insurance

b)

News

c)

Income

d)

Checks

3.

______ a type of income in which a person earns a certain percentage of what he or she sells.

a)

Commission

b)

Wage

c)

Salary

d)

Retirement

4.

_____ basic needs that a household must pay for

a)

saving

b)

budget

c)

expenses

d)

income

5.

setting money aside to use in the future

a)

saving

b)

income

c)

salary

d)

budget

6.

a plan on how to spend and save money

a)

saving

b)

budget

c)

expenses

d)

wage

7.

an hourly rate paid in exchange for labor (work)

a)

saving

b)

budget

c)

income

d)

wage

8.

Which action negatively affects credit scores?

a)

skipping payments

b)

paying bills on time

c)

a low balance on credit cards

d)

opening one new credit account at a time

9.

Opening several new credit accounts at the same time improves a person's credit score.

a)

TRUE

b)

FALSE

10.

Katie wants to save money each month. What would help Katie?

a)

avoiding bank accounts

b)

buying wants before needs

c)

following a responsible budget

d)

spending extra money on luxuries

11.

Credit means buying something now and paying for it later (usually with interest)

a)

TRUE

b)

FALSE

12.

Income is money that you earn from working or gain from investments.

a)

TRUE

b)

FALSE

13.

Interest is a fee paid to use someone else's money.

a)

TRUE

b)

FALSE

14.

A credit card is a form of money.

a)

TRUE

b)

FALSE

15.

Money left over after buying what is needed and wanted

a)

Saving

b)

Credit

c)

Income

d)

Spending