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WorksheetsSS7E10 Personal Finance Test
Total questions: 20
Worksheet time: 12mins
Name
Class
Date
1.
What is a plan for saving and spending?
a)
a budget
b)
a checking account
c)
a savings account
d)
a will
2.
Credit becomes a problem when ________________.
a)
banks begin to issue their own credit cards
b)
credit is used to pay for things like college tuition
c)
credit card companies offer people additional credit cards
d)
a person cannot find the money to pay thei monthly bills
3.
Which of the following allows people to increase their income?
a)
arguing with a boss
b)
applying for a credit card
c)
receiving more training
d)
opening a checking account
4.
Which of the following is NOT a wise financial decision?
a)
using credit for everything
b)
saving for the future
c)
writing down expenses to track spending
d)
creating a budget based on your NET income
5.
Why do people save money?
a)
to buy things now.
b)
They want to give it away.
c)
To spend money.
d)
They can pay for things in the future.
6.
Your paycheck is an example of
a)
net gain
b)
net loss
c)
income
d)
expense
7.
Which is NOT a typical goal for saving?
a)
To create an emergency fund
b)
To pay for higher education
c)
To save for a new car
d)
To buy groceries for this week
8.
What is a good strategy to help you save?
a)
1st, spend money on all expenses; put the rest into saving
b)
Tap into your savings on a regular basis to purchase small items, like snacks
c)
Pay yourself first - set aside money for savings each month
d)
Keep your spending and saving money together in 1 account
9.
Retirement, college education, wedding, a nice trip, and a new truck are all what?
a)
reasons people save
b)
examples of undisciplined spending
c)
things bought on credit
d)
methods of investing
10.
Which of the following is a characteristic of an effective budget?
a)
too much income
b)
investing more than you save
c)
expenses greater than your income
d)
spending less than your income
11.
What is the first step in budgeting?
a)
Record what you spend
b)
Estimate your income
c)
Set financial goals
d)
Review and evaluate monthly
12.
Why do people need jobs?
a)
because they are bored
b)
to earn money for needs and wants
c)
because kids are in school all day
d)
to volunteer
13.
What is credit?
a)
the ability to borrow money
b)
a type of card used to get money from a checking account
c)
a useful tool for borrowing more money that you can afford to repay
d)
a way to borrow money that is only used by businesses and the government
14.
Which of the following is NOT an advantage of credit?
a)
acquire valuable assets
b)
allows consumers to take advantage of sales
c)
interest increases the costs of purchases
d)
useful in an emergency
15.
Save to buy the things you ____________.
a)
afford
b)
need
c)
want
d)
steal
16.
Which of the following does a person need to know to plan an effective budget?
a)
his or her credit score
b)
personal income
c)
statewide interest rates
d)
adjustable rate mortgages
17.
You need to purchase a pair of sneakers since they are required for physical education class. Which of the following is an example of effective decision making?
a)
You buy a pair of sneakers after considering fit, appearance, and cost.
b)
You buy the first pair of sneakers you try on at the first store you visit.
c)
You use your money to buy a pair of jeans instead of a pair of sneakers.
d)
You buy the most stylish and expensive pair of sneakers you find.
18.
Having a budget, investing in the future, and staying out of debt are ways citizens ______________.
a)
manage their money wisely
b)
influence government spending
c)
go bankrupt
d)
provide municipal revenue
19.
You need this in your budget for long-range goals like taking a vacation.
a)
Gross pay
b)
net pay
c)
savings
d)
none of these
20.
David wants to buy a new car. Since the car costs more than the amount of money he has, David pays for half of the car out of his savings account and borrows the rest. David now has what?
a)
budget
b)
debt
c)
investments
d)
savings
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