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Financial Literacy Vocabulary: Part 1

Total questions: 25

Worksheet time: 17mins

Name
Class
Date
1.

Which term describes money being automatically taken from a bank account on a set schedule to pay bills without writing a check?

a)

Budget

b)

Automatic Bank Deduction

c)

Electronic Payments

d)

Debit Card

2.

What does it mean to borrow?

a)

To permanently take money from someone with no plan to return it

b)

To temporarily take money or an item with a promise to return it, often with an extra fee or interest

c)

To list all money spent during a time period

d)

To pay using physical coins and paper bills

3.

Which option best describes a budget?

a)

A card that lets you borrow money for purchases

b)

A plan showing money coming in and going out to manage spending and save

c)

A written order telling a bank to pay someone

d)

Special tickets or codes that give you a discount

4.

Which payment method takes money out of your bank account immediately when you make a purchase?

a)

Credit Card

b)

Debit Card

c)

Check

d)

Coupons

5.

A credit card allows you to make purchases by borrowing money that must be paid back later, often with added interest. Which statement is a smart use of a credit card?

a)

Using it for everyday purchases you cannot afford and ignoring the bill

b)

Using it for a necessary purchase and paying the bill in full on time

c)

Sharing the card with friends to split costs

d)

Using it only because it removes money immediately from your bank

6.

Which item lists all the money you have spent during a specific time period?

a)

Expense Statement

b)

Financial Planning Tool

c)

Budget

d)

Electronic Payments

7.

Which tool helps you organize and manage your money more effectively?

a)

Charitable Contributions

b)

Financial Planning Tool

c)

Cash

d)

Discounts

8.

Which term refers to physical items that can be bought and sold, like toys, clothes, or electronics?

a)

Goods

b)

Services

c)

Savings

d)

Profit

9.

What is income?

a)

Money set aside for future use

b)

The money you earn from working, allowances, or other sources

c)

An extra percentage added to the price of items

d)

The total value of what you own minus what you owe

10.

Which statement best defines interest?

a)

A document showing what you own and owe

b)

The extra money you pay when borrowing or earn when saving, calculated as a percentage of the original amount

c)

Money paid to use something you don't own

d)

Big, expensive items that require planning

11.

A purchasing method where you pay for an item in parts and can take it home only after it's fully paid is called:

a)

Lease

b)

Layaway Plan

c)

Payroll Card

d)

Sales Tax

12.

Which choice best explains a lease?

a)

An agreement to rent something for a specific time period in exchange for regular payments

b)

Money earned by letting someone use your property

c)

A financial document that shows how much money you've earned

d)

A prepaid card employers use to pay employees

13.

What does a net worth statement show?

a)

Your income sources

b)

The extra money added to prices by the government

c)

The total value of what you own minus what you owe

d)

How well-made or effective a product is

14.

Which option lists payment methods mentioned in the material?

a)

Cash, credit card, debit card, check

b)

Gift card, coupon, store credit

c)

Direct deposit, wire transfer, mobile pay

d)

Barter, trade, IOU

15.

Which term is defined as work done by someone for payment, like haircuts, car repairs, or tutoring?

a)

Goods

b)

Services

c)

Profit

d)

Product Quality

16.

Which term refers to a computer program or document used to organize and calculate financial information?

a)

Spreadsheet

b)

Tip

c)

Unit Price

d)

Receipt

17.

A snack pack costs 4for8ounces.Alargerbagcosts4 for 8 ounces. A larger bag costs 7 for 20 ounces. Using the vocabulary term that helps you compare prices, which option has the lower unit price?

a)

Snack pack ($0.50 per ounce)

b)

Larger bag ($0.35 per ounce)

c)

Both have the same unit price

d)

Unit price cannot be determined

18.
a)

A

b)

B

c)

C

d)

D

19.

If Rebeca's budget is balanced, how much does she pay a month for utilities?

(a)  

20.

Michelle works at a bank. Her net income is $3,600 per month. Below is Michelle's budget.


What does Michelle need to do in order to balance her budget?

a)

Spend $50 more on clothes

b)

Only put $350 in her savings

c)

Only spend $75 on entertainment

d)

Only spend $360 on transportation

21.

What plan is used to manage money?

a)

check

b)

checking account

c)

budget

d)

retirement account

22.

A budget is ___________.

a)

a list of what to buy at a store

b)

a plan for managing your money. It compares how much you earn (make) to how much you spend

c)

is things you shouldn't do

23.

A budget it a helpful tool.

a)

True

b)

False

24.

A budget _________________________.

a)

Lets you know how much money you have and where it's going

b)

lets you know what's for dinner

c)

is something babies understand

25.
A plan for spending
a)
income
b)
expenses
c)
sales tax
d)
budget