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Financial Literacy for Students

Total questions: 30

Worksheet time: 15mins

Name
Class
Date
1.

Which of the following is the best definition of a budget?

a)

A list of things you want to buy

b)

A plan for how to spend and save your money

c)

A record of your debts

d)

A way to avoid paying taxes

2.

If you earn $200 per month and want to save 20%, how much should you save each month?

a)

$10

b)

$20

c)

$40

d)

$50

3.

Which of the following is NOT a good reason to create a budget?

a)

To track your spending

b)

To spend more than you earn

c)

To save for future goals

d)

To avoid debt

4.

What does the term "interest" mean in saving and investing?

a)

The amount you borrow from a bank

b)

The extra money earned or paid for using money

c)

The total amount of your savings

d)

The price of an item

5.

Which of the following is a safe place to keep your savings?

a)

Under your mattress

b)

In a savings account at a bank

c)

In your wallet

d)

In a piggy bank at home

6.

What is a credit score?

a)

A number that shows how much money you have

b)

A number that shows how likely you are to repay borrowed money

c)

The amount of money you owe

d)

The amount of money you earn

7.

Which of the following is an example of good debt?

a)

Borrowing money to buy unnecessary clothes

b)

Taking a loan for education

c)

Using a credit card for video games

d)

Borrowing money for a party

8.

What is the best way to avoid credit card debt?

a)

Pay only the minimum amount each month

b)

Pay the full balance every month

c)

Ignore your credit card bill

d)

Use your credit card for everything

9.

Which of the following is a strategy for managing debt?

a)

Borrow more money to pay off old debts

b)

Make a list of all your debts and pay off the smallest first

c)

Ignore your debts

d)

Only pay interest on your debts

10.

If you have a loan with an interest rate of 5%5\% per year, how much interest will you pay on a 100100 loan after one year?

a)

$1

b)

$5

c)

$10

d)

$50

11.

Which of the following is a short-term financial goal?

a)

Saving for retirement

b)

Buying a car in 10 years

c)

Saving for a school trip next month

d)

Buying a house in 20 years

12.

What is the first step in setting a financial goal?

a)

Spend all your money

b)

Decide what you want to achieve

c)

Borrow money

d)

Ignore your expenses

13.

Which of the following is a right of consumers?

a)

To receive false information about products

b)

To be treated unfairly by sellers

c)

To receive safe and accurate products

d)

To pay more than the listed price

14.

What should you do before making a big purchase?

a)

Buy it immediately

b)

Compare prices and read reviews

c)

Ignore your budget

d)

Borrow money without thinking

15.

Which of the following is NOT a responsibility of a consumer?

a)

Reading product labels

b)

Paying for products

c)

Ignoring product safety

d)

Keeping receipts

16.

If you save 1010 every week, how much will you have after 88 weeks?

a)

$18

b)

$80

c)

$800

d)

$28

17.

Which of the following is an example of investing?

a)

Buying snacks

b)

Putting money in a savings account

c)

Buying stocks

d)

Spending money on games

18.

What does "living within your means" mean?

a)

Spending more than you earn

b)

Spending less than you earn

c)

Borrowing money for everything

d)

Ignoring your income

19.

Which of the following is a fixed expense?

a)

Movie tickets

b)

Rent

c)

Groceries

d)

Clothing

20.

What is the main purpose of saving money?

a)

To spend it immediately

b)

To prepare for emergencies and future needs

c)

To avoid budgeting

d)

To borrow more money

21.

If you borrow 5050 from a friend and agree to pay back 5555 in one month, what is the interest rate?

a)

5%5\%

b)

10%10\%

c)

50%50\%

d)

100%100\%

22.

Which of the following is a variable expense?

a)

Rent

b)

Car payment

c)

Electricity bill

d)

School fees

23.

What is the best way to increase your savings?

a)

Spend more money

b)

Save a portion of your income regularly

c)

Ignore your budget

d)

Borrow money

24.

Which of the following is a benefit of having a good credit score?

a)

Higher interest rates

b)

Easier approval for loans

c)

More debt

d)

Less access to financial products

25.

What is the formula for calculating 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

26.

Which of the following is NOT a good way to manage debt?

a)

Make regular payments

b)

Ignore your bills

c)

Create a repayment plan

d)

Ask for lower interest rates

27.

What is the main difference between saving and investing?

a)

Saving is for spending, investing is for borrowing

b)

Saving is low risk, investing can be higher risk

c)

Saving loses money, investing always gains money

d)

Saving is for adults, investing is for kids

28.

Which of the following is a consumer responsibility?

a)

To ignore product instructions

b)

To use products safely

c)

To demand free products

d)

To avoid paying for products

29.

If you want to buy a bike that costs 120120 and you save 1515 per month, how many months will it take to save enough?

a)

66

b)

88

c)

1010

d)

1212

30.

Which of the following is the best example of a long-term financial goal?

a)

Buying lunch tomorrow

b)

Saving for a vacation next year

c)

Saving for college in five years

d)

Buying a book next week