WorksheetsPersonal Finance Final Review
Total questions: 20
Worksheet time: 24mins
What is a bond?
A type of savings account offered by banks
A loan made by an investor to a government or corporation
A share of ownership in a company
A credit card with a fixed interest rate
What is the main purpose of a brokerage account?
To store money for daily expenses
To buy and sell investments like stocks and bonds
To pay monthly bills automatically
To earn interest on savings
Which of the following is a fixed expense?
Groceries
Rent
Entertainment
Clothing
How many months of expenses should you have saved for emergencies?
1 month
3-6 months
12 months
24 months
How is a bond fund different from an individual bond?
A bond fund invests in many bonds, while an individual bond is a single loan
A bond fund is a type of savings account
An individual bond is riskier than a bond fund
A bond fund is only offered by banks
What is the difference between saving and investing?
Saving is for short-term goals and investing is for long-term growth
Saving always earns more money than investing
Investing is risk-free, saving is risky
Saving is only for retirement
What is the recommended percentage of income you should budget for savings and investments?
10%
20%
50%
70%
Explain one benefit of starting to invest early.
You can avoid paying taxes
Your money has more time to grow through compound interest
You will never lose money
You can spend more on wants
What is the 50/30/20 rule?
Spend 50% on needs, 30% on wants, and 20% on savings/investments
Save 50%, invest 30%, spend 20%
Spend 50% on wants, 30% on needs, 20% on investments
Invest 50%, save 30%, spend 20%
Which strategy can help you repay debt with the least amount of interest?
Paying only the minimum payment each month
Paying off debts with the highest interest rate first
Ignoring your debts
Taking out more loans
A student wants to start building credit history. Which action would be most effective?
Opening a credit card and making payments on time
Only using cash for all purchases
Ignoring bills
Borrowing money from friends
Imagine you are planning for retirement. What evidence would you use to decide how much to invest each month?
Your expected monthly expenses, current savings, and years until retirement
The color of your credit card
The number of friends you have
The weather forecast
Imagine Sofia is reviewing her FICO Credit Score report. The report is likely to include:
GPA, marital status, total assets,
income history and job history
Amt owed, New Credit, Length of Credit History, Credit Mix, Payment History
all of the above
Connor is trying to improve his credit score, so he discussed this with his friend Becky. Which factors did she tell Connor to focus on?
Payment history, credit utilization, length of credit history
His income, education level, age
Number of credit cards he has, types of credit used, recent inquiries
His social media activity, shopping habits, favorite color
Which of the following is an effective strategy for personal saving?
Wait until the end of the month and save whatever is left in your checking account
Save a certain percentage of each paycheck and deposit it directly into a savings account
Cover all of your wants and needs and save whatever is left over
Take out a payday loan so you can save before you receive your paycheck
Which of these credit payback strategies would lead to the HIGHEST overall cost for the borrower?
Paying 50% of your credit card balance every month on time
Making the minimum payment (3% of your balance) every month, with an occasional late payment
What is a pension?
College savings plan
Health insurance plan
Short-term loan with high interest rates given by employer
Retirement account usually sponsored by an employer
What does 'IRA' stand for?
Individual Reward Account
International Retirement Alliance
Investment Reserve Agreement
Individual Retirement Account
What is a brokerage account primarily used for?
Buying real estate
Investing in cryptocurrency
Trading assets such as stocks, bonds, mutual funds
Opening a savings account
