WorksheetsPersonal Finance Vocabulary Review
Total questions: 30
Worksheet time: 5hrs 13mins
Define Budget.
A budget is a plan for managing income and expenses over a certain period of time.
A budget is a type of bank account used for savings.
A budget is a document that records only expenses, not income.
A budget is a list of items to be purchased for a business.
Define Income.
Income is money received, especially on a regular basis, for work or through investments.
Income is the total amount of goods produced in a factory.
Income refers to the number of hours worked in a week.
Income is the process of spending money on various items.
Define Gross Annual Income.
Gross annual income is the total amount of money earned in one year before any deductions or taxes.
Gross annual income is the amount of money left after all expenses are paid.
Gross annual income is the total amount of money earned in a month after taxes.
Gross annual income is the profit made from selling assets in a year.
Define Net Annual Income.
Net annual income is the amount of money earned in one year after deductions such as taxes and other expenses.
Net annual income is the total amount of money earned before any deductions.
Net annual income is the amount of money received as a bonus in a year.
Net annual income is the total value of all assets owned in a year.
Define Debt.
Debt is money that is owed or due to another person or institution.
Debt is a type of investment that always earns profit.
Debt is a form of government grant given to citizens.
Debt is a reward given for saving money.
Define Credit.
Credit is the ability to borrow money or access goods or services with the understanding that you will pay later.
Credit is a type of currency used only in online transactions.
Credit refers to a government-issued identification number.
Credit is a form of insurance against theft.
Define Debit Card.
A debit card is a payment card that deducts money directly from a consumer’s checking account to pay for a purchase.
A debit card is a card that allows you to borrow money from the bank to make purchases and pay later.
A debit card is a card used only for withdrawing cash from ATMs and cannot be used for purchases.
A debit card is a card that provides reward points for every purchase but does not deduct money from your account.
What is the main purpose of creating a budget?
To plan and control income and expenses to achieve financial goals.
To keep track of only the money spent on entertainment.
To record the number of hours worked each week.
To list all the items you want to buy in the future.
Which of the following best describes a credit card?
A card that only allows you to withdraw cash from your savings account.
A card that allows you to borrow money up to a certain limit and pay it back later, usually with interest.
A card that can only be used for online shopping.
A card that automatically saves a portion of your income every month.
Which statement is true about gross annual income?
It is the amount of money left after paying all debts.
It is the total income earned in a year before any deductions are made.
It is the total value of all personal assets.
It is the money received only from investments.
The goal of a budget is to SAVE more than you SPEND.
True
False
Which strategy can help you save money?
Spending all your money at once
Ignoring your budget
Setting aside a portion of your income regularly
Borrowing money frequently
Imagine Liam just got his first job! The term used to describe the money he earns before any deductions are taken out is called (a) . Can you help him figure it out?
Gross Pay
Net Pay
Deductions
Salary
(a) is a fixed payment for work and is expressed as an annual figure.
Which of the following expenses should be included in a typical budget?
taxes
charitable giving - charities
savings
All of the expenses should be included in a typical budget
Which of the following is NOT true of a budget? [note capitalization of “NOT”]
Budgets help you plan how to spend money you earn or receive
Once a budget is set, it should not be revisited
A budget can include charitable giving
Budgets include both income and expenses
The amount of money you earn BEFORE payroll deductions is _____.
Take home pay
State Taxes
Net Pay
Gross Pay
Which of the following is not a source of income?
Your annual salary for doing your job
Your monthly student loan payment
The stipend you receive for doing an internship
The wages you receive after a work shift
What is a simple definition of personal finance?
The study of government economies
Managing a company's finances
Managing your money, including saving and investing
The process of borrowing money from banks
What is the main benefit of tracking your spending?
It makes budgeting unnecessary
It helps you increase your debts
It guarantees you will earn more income
It allows you to identify areas where you can save money
Adele needs to plan for a large-scale purchase. What is her BEST option?
Put money into a savings account
Use a credit card
Take out a loan
Ask a family member for a loan
Money you earn through work
Taxes
Interest
Income
Credit Card
Why is creating a budget so important? (Select all that apply)
It can help you reach your savings goals for what you want or need.
It can help you make better financial decisions.
It can help you see your spending habits so you can adjust them to what you want or need.
It can help you keep track of your neighbor's financial habits.
It can help you get a better job.
Darin wants to plan for his future. What is the BEST advice to give him for how to manage his monthly paycheck?
Buy everything you want whenever you want to
Invest it all now
Pay your debts/expenses and invest some for the future
Spend it all now
When the bank charges interest on a loan we borrow, we must...
Pay more money than we borrowed from the bank
Pay less money than we borrowed from the bank
Which type of card is a loan in which the lender will charge you interest if you do not pay off the balance each month?
Credit Card
Debit Card
Prepaid Card
Which of the following scenarios demonstrates a good budgeting practice?
Julie’s monthly income is less than her monthly expenses.
Carly’s monthly taxes are equal to her monthly expenses.
Rico spends less money each month than he earns at his job.
Sam spends more money each month than he earns at his job.
