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Introduction to Financial Literacy and Planning

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

According to the content, which statement best defines financial literacy?

a)

Knowing how to earn, save, spend, and invest wisely to reach goals like college, travel, or buying a car.

b)

Creating a list of monthly expenses and income.

c)

Understanding only how to avoid credit card debt.

d)

Setting long-term goals that take over 5 years to achieve.

2.

Evelyn is building an emergency fund. Based on the guidance in the content, what should she do FIRST to help her save effectively?

a)

Start investing $4,000 right away.

b)

Track her spending by listing everything she spends money on in 1 day.

c)

Apply for a new credit card with a lower interest rate.

d)

Buy a car to reduce transportation costs.

3.

Match each goal time frame with one example provided in the content.

a)

Short-term: build a $500 emergency fund; Intermediate: buy a car; Long-term: pay for college

b)

Short-term: buy a home; Intermediate: save $4,000 to invest; Long-term: pay off small debt

c)

Short-term: move into your own place; Intermediate: save for vacation; Long-term: build wealth

d)

Short-term: save for retirement; Intermediate: buy a car; Long-term: build a $500 emergency fund

4.

According to the content, what is the first step before you can save money?

a)

Create a long-term investment plan

b)

Track your spending by listing everything you spend in one day

c)

Open a savings account

d)

Ask a financial advisor for help

5.

Which of the following is listed as a reason why many people struggle with money problems?

a)

High income taxes

b)

Poor planning

c)

Too many bank accounts

d)

Lack of access to credit cards

6.

Which time frame correctly matches the type of financial goal?

a)

Short-term: 2–5 years

b)

Intermediate: Under 2 years

c)

Long-term: Over 5 years

d)

Long-term: 2–5 years

7.

Evelyn is building an emergency fund. Based on the material, what should she do to plan effectively?

a)

Ignore inflation because it changes too often

b)

Think about her personal situation, bills, and inflation

c)

Focus only on saving for retirement

d)

Pay off only large debts first

8.

According to the 'Types of Financial Goals' section, which timeframe correctly defines an intermediate goal?

a)

Under 2 years

b)

2–5 years

c)

Over 5 years

d)

Exactly 1 year

9.

Which of the following is listed as a short-term goal example in the content?

a)

Buy a home

b)

Save $4,000 to invest

c)

Build a $500 emergency fund

d)

Pay for college

10.

A student wants to plan goals for the next 6 years. Based on the 'Long-Term Goals' section, which option best aligns with a long-term goal from the list provided?

a)

Save for vacation

b)

Move into your own place

c)

Buy a car

d)

Save for retirement