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Financial Literacy for Students

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

What is a budget?

a)

A list of your favorite foods

b)

A plan for how to spend and save your money

c)

A type of bank account

d)

A way to measure your height

2.

Which of the following is a good reason to save money?

a)

To buy things you don’t need

b)

To prepare for emergencies

c)

To spend it all at once

d)

To avoid making a budget

3.

If you earn 50andspend50 and spend 30, how much do you save?

a)

$20

b)

$80

c)

$30

d)

$50

4.

What does “interest rate” mean?

a)

The price of a product

b)

The percentage charged or earned on money

c)

The number of coins you have

d)

The amount of money in your wallet

5.

Which is an example of a fixed expense?

a)

Movie tickets

b)

Rent or mortgage payment

c)

Buying snacks

d)

Going to the amusement park

6.

What is the best way to avoid debt?

a)

Spend more than you earn

b)

Borrow money for everything

c)

Only buy what you can afford

d)

Ignore your bills

7.

If you save $10 every week, how much will you have after 4 weeks?

a)

$20

b)

$40

c)

$10

d)

$50

8.

What is a financial goal?

a)

A wish for a new video game

b)

A plan for what you want to achieve with your money

c)

A list of chores

d)

A type of bank account

9.

Which of the following is a good saving strategy?

a)

Spend all your money right away

b)

Save a part of your allowance every time you get it

c)

Never save any money

d)

Only save when you feel like it

10.

If you borrow 100ataninterestrateof100 at an interest rate of 5\%$ per year, how much interest will you pay after one year?

a)

$5

b)

$10

c)

$50

d)

$500

11.

What is investing?

a)

Spending money on candy

b)

Putting money into something to try to make more money

c)

Giving money away for free

d)

Hiding money under your bed

12.

Which is NOT a good way to manage debt?

a)

Pay more than the minimum payment when possible

b)

Ignore your bills

c)

Make payments on time

d)

Keep track of what you owe

13.

If you want to buy a bike that costs 120andyousave120 and you save 20 each month, how many months will it take to save enough?

a)

4 months

b)

6 months

c)

8 months

d)

12 months

14.

What is the formula for simple interest?

a)

I=P+R+TI = P + R + T

b)

I=P×R×TI = P \times R \times T

c)

I=P÷R÷TI = P \div R \div T

d)

I=PRTI = P - R - T

15.

Which of the following is a variable expense?

a)

Rent

b)

Electricity bill

c)

Car payment

d)

School tuition

16.

Why is it important to set financial goals?

a)

To spend money faster

b)

To help you plan and save for things you want

c)

To avoid saving money

d)

To make shopping easier

17.

What does “pay yourself first” mean?

a)

Spend all your money on yourself

b)

Save a portion of your money before spending on other things

c)

Give money to your friends

d)

Buy gifts for your family

18.

If you invest 200andearn200 and earn 20 in profit, what is your return?

a)

$10

b)

$20

c)

$200

d)

$220

19.

Which is a good way to track your spending?

a)

Keep a spending journal

b)

Never check your bank account

c)

Spend without thinking

d)

Only use cash

20.

What is a loan?

a)

Money you give to someone as a gift

b)

Money you borrow and must pay back

c)

Money you find on the street

d)

Money you earn from a job

21.

Which of the following is an example of investing?

a)

Buying a new phone

b)

Putting money in a savings account

c)

Spending money on snacks

d)

Buying a video game

22.

If you have 100andspend100 and spend 25, what percentage of your money did you spend?

a)

25%25\%

b)

50%50\%

c)

75%75\%

d)

10%10\%

23.

What is the main purpose of a budget?

a)

To help you spend more money

b)

To help you manage your money

c)

To keep your money hidden

d)

To make shopping fun

24.

Which is a benefit of saving money in a bank?

a)

You lose your money

b)

Your money is safe and can earn interest

c)

You can’t access your money

d)

You spend it faster

25.

If you owe 50andpayback50 and pay back 10 each week, how many weeks until you pay it all back?

a)

2 weeks

b)

5 weeks

c)

10 weeks

d)

1 week

26.

What is a “need” in budgeting?

a)

Something you want but can live without

b)

Something necessary for living, like food or shelter

c)

Something fun to buy

d)

A new video game

27.

Which is a good way to avoid impulse buying?

a)

Make a shopping list and stick to it

b)

Buy things you see first

c)

Shop without a plan

d)

Spend all your money at once

28.

What does “compound interest” mean?

a)

Interest only on the original amount

b)

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

c)

No interest at all

d)

Interest paid to your friends

29.

If you set a goal to save $100 in 5 months, how much should you save each month?

a)

$10

b)

$20

c)

$25

d)

$50

30.

Why is it important to understand interest rates when borrowing money?

a)

So you can borrow more than you need

b)

To know how much you will have to pay back

c)

To avoid paying back the loan

d)

To spend money faster