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Worksheets

Personal Finance Spiral

Total questions: 32

Worksheet time: 16mins

Name
Class
Date
1.

Darius wants to buy a new car. He has a well-paying job, but knows that he must save his money for a while before he can afford the car. What should Darius do first?

a)

sell his old car

b)

create a budget

c)

get a different job

d)

apply for a credit card

2.

What is a reasonable expense to cover using a loan from a bank?

a)

a new car

b)

a parking fee

c)

a concert ticket

d)

a restaurant bill

3.

Use the table describing the personal monthly budgets of four people to answer the question. Who has developed the MOST responsible personal budget?

a)

Jay

b)

Piper

c)

Amari

d)

Marvin

4.

To help him start a business, Cameron took out a $10,000 loan from a bank. The loan has an annual interest rate of 5%. What expectation should Cameron have?

a)

to repay the bank the full amount, minus interest

b)

to repay the bank the full amount, plus interest

c)

to have the loan forgiven if his business fails

d)

to have the interest waived if his business fails

5.

Fatima is preparing a personal budget to help better manage her income. What must Fatima balance when preparing her budget?

a)

interest and credit

b)

interest and saving

c)

spending and credit

d)

spending and saving

6.

What will making a personal budget help a person do?

a)

lower his or her tax rate

b)

earn a promotion at work

c)

plan for emergency expenses

d)

reduce his or her monthly bills

7.

What would be the BEST way to balance this budget?

a)

earn a lot more money

b)

lower some expenses

c)

borrow more money

d)

spend more money

8.

What is the purpose of an emergency fund?

a)

to pay monthly expenses

b)

to pay for unexpected costs

c)

to make a down payment on a vehicle

d)

to take a family vacation in the summer

9.

Who likely earns the greatest amount of income each month?

a)

Darius

b)

Armando

c)

Mallory

d)

Annika

10.

Julius earns $1,000 a month and wants to develop a budget to help him better manage his income. He has $700 in bills that are due each month. Which budget is MOST responsible?

a)

Expenses: $200, Savings: $700, Entertainment: $100

b)

Expenses: $700, Savings: $200, Entertainment: $100

c)

Expenses: $700, Savings: $0, Entertainment: $300

d)

Expenses: $200, Savings: $800, Entertainment: $0

11.

Which individual would be BEST prepared for an unexpected expense?

a)

Dante is most prepared because he has the highest income.

b)

Bob is most prepared because he has the lowest monthly expenses.

c)

Dante is most prepared because he has the highest monthly expenses.

d)

Sally is most prepared because she is saving more money each month.

12.

Dominick accepts a full-time position at a record store in his hometown. What expectations should Dominick have for this new job?

a)

He should expect to earn income in exchange for working around 20 hours per week.

b)

He should expect to earn interest in exchange for working around 20 hours per week.

c)

He should expect to earn income in exchange for working around 40 hours per week.

d)

He should expect to earn interest in exchange for working around 40 hours per week.

13.

Why is it important to save money? Select all that apply.

a)

Savings help people earn more income at their jobs.

b)

Savings help people avoid having to establish a budget.

c)

Savings help people balance their income and expenses.

d)

Savings help people prepare for unexpected emergencies.

e)

Savings help people avoid accumulating unnecessary debt.

14.

Sasha is a bank manager. Every two weeks she receives a paycheck from the bank. What do Sasha’s paychecks represent?

a)

The taxes received from work.

b)

The credit received from work.

c)

The income received from work.

d)

The interest received from work.

15.

Who would MOST likely provide innovation and creativity to an economy?

a)

entrepreneurs

b)

the legislature

c)

factory workers

d)

the prime minister

16.

Using credit is very similar to

a)

taking out a loan.

b)

cashing a paycheck.

c)

saving personal income.

d)

opening a checking account.

17.

Which of the following is an advantage of saving money each month?

a)

Savings allow an individual to pay for an unexpected expense without going into debt.

b)

Savings are a quick way to increase your monthly work income.

c)

Savings ensure a better interest rate on credit card purchases.

d)

Savings create the opportunity to build your credit score.

18.

What is a risk of using credit cards?

a)

reducing income earned each month

b)

earning less on investments

c)

falling into unnecessary debt

d)

increasing the amount of taxes owed

19.

What is the term for giving up one thing to get something else, like spending money on video games instead of saving for a new bike?

a)

Tradeoff

b)

Saving

c)

Investing

d)

Budget

20.

What is the term for using someone else's money (like a bank) with a promise to pay it back later, often with extra money called interest?

a)

Income

b)

Borrowing

c)

Spending

d)

Debit

21.

What is the term for using money to try to make more money, like buying stocks or real estate?

a)

Investing

b)

Credit

c)

Needs

d)

Expenses

22.

What is the ability to borrow money and pay it back later, often with interest?

a)

Credit

b)

Income

c)

Saving

d)

Wants

23.

What is the term for money taken out of your bank account when you buy something using a debit card?

a)

Debit

b)

Budget

c)

Tradeoff

d)

Entrepreneurship

24.

What is the term for putting money aside for later?

a)

Saving

b)

Spending

c)

Debt

d)

Income

25.

What is the term for things you would like to have but don't need to survive?

a)

Wants

b)

Needs

c)

Expenses

d)

Budget

26.

What is the term for starting your own business to make money by selling goods or services?

a)

Entrepreneurship

b)

Borrowing

c)

Credit

d)

Investing

27.

What is the term for things you must have to live, like food, clothes, shelter?

a)

Needs

b)

Wants

c)

Income

d)

Tradeoff

28.

What is the term for the things you spend money on, like food, clothes or bills?

a)

Expenses

b)

Saving

c)

Budget

d)

Investing

29.

What is the term for money you earn or receive, like a job or gift?

a)

Income

b)

Debt

c)

Credit

d)

Borrowing

30.

What is the term for a plan for how to spend and save your money?

a)

Budget

b)

Tradeoff

c)

Wants

d)

Needs

31.

What is the term for using money to buy things or pay for services?

a)

Spending

b)

Saving

c)

Investing

d)

Borrowing

32.

What is the term for money that you owe to someone, usually because you borrowed it?

a)

Debt

b)

Income

c)

Credit

d)

Expenses