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WorksheetsPFL Final 12/17/2025
Total questions: 79
Worksheet time: 2hrs 59mins
Although the majority of Americans think budgeting is important, about ______ of Americans actually use a budget.
75%
50%
23%
35%
Which of the following is NOT a component of a budget?
Credit score
Saving
Income
Giving
What are the Four Walls?
Utilities, college fund, restaurants, and car insurance
Cell phone bill, car insurance, shelter, and money for the movies
Food, utilities, transportation, and college fund
Food, utilities, shelter, and transportation
How often should you create a budget?
Daily
Weekly
Monthly
Biannually
What does a budget show you?
How much you need to save
How much money you plan to come in and go out during the month
How much money you need to earn
How much money you spent last month
Your money personality can affect your ______.
Attitude toward budgeting
Choice of bank
Personal values
Ability to budget
Research shows that nearly half of Americans (46%) feel stress and anxiety about the amount of ______ they have.
Money
Debit cards
Categories in their budget
Personal debt
Why is tracking your expenses throughout the month important?
It allows you to delete categories you don't like.
It gives you insight into whether you're sticking to the budget you set.
It helps you pull money from your savings to spend in other categories.
It really isn't that important in the long run.
What kind of money counts as income?
Only the money you make at your job
All money that you receive, including money from your job and gifts like birthday money
Money in your savings account
Only money deposited into your bank account
A common misconception is that budgeting will keep you from having fun, when in reality a budget ______.
Adds more stress to your life
Means there are no rules—you are free to use your money however you want
Restricts your fun completely
Gives you permission to spend
When is the right time to start creating and living by a budget?
Right now - it's never too early!
When you start researching colleges and the costs that come along with it
Once you have a job with an income
When you decide it's time to buy a car
What should you do if you overspend in one category of your budget?
Adjust your budget by removing money from other spending categories.
Just leave it. It will probably work out fine.
Take money from the Giving category. You're giving to yourself!
Ask a friend for the money you overspent.
The best way to budget is...
By using a digital app
Creating a spreadsheet
The way that works best for you
On paper
Why is budgeting so important?
It's a good way to make sure all your money is spent by the end of the month.
It helps you figure out the best way to justify purchases that maybe aren't necessary.
It gives you control of your money and sets you up for financial success in the future.
It helps you brush up on your math skills.
Once you have a $500 emergency fund, you should . . .
Start putting it toward debt
Invest it in the stock market to grow your money
Save it until you have an emergency
Use the money to pay for health insurance
The first step you should take when you want to make a large purchase is . . .
Ask your parents to loan you the money with low interest
Get a new credit card
Decide how much you'll need to save and the time frame you want to save it in
Sell something and use the proceeds
The best way to build wealth is to start investing early. You should start investing money . . .
Once you have a fully funded emergency fund
Once you're out of college, living debt-free, and have 3–6 months of living expenses saved
When the stock market is performing really well
As soon as you have extra cash
If you really want to save money, you've got to . . .
Fly economy class
Live on less than you make
Invest in a Roth IRA
Have a financial advisor
Which two habits are the most important for building wealth and becoming a millionaire?
Working a high-paying job and relying on a trust fund
Always paying off your credit card on time and putting extra money into a retirement account
Investing into the right stocks and using a private CPA
Consistently investing money and giving it time to grow
________ is a millionaire's best friend.
Accrued interest
Compound growth
High returns
Profit sharing
The purpose of an emergency fund is to . . .
Be able to cover an unexpected expense with cash and protect you from having to pile up debt when something goes wrong
Teach you how to invest in growth stock mutual funds
Have some extra money in a checking account in case you need to transfer some to your spending categories.
Teach you discipline—saving is purely a good exercise in self-control
What is the goal of an emergency fund?
To pay for large purchases
To save for your children's college expenses
To have cash on hand for unexpected events
To pay for health insurance
The main reasons for saving your hard-earned money are . . .
Emergencies, large purchases, and wealth building
Paying for your dream home, buying your dream car, and going on your dream vacation
Buying gifts, donating to charities, and building up a college fund for your kids
Investing, indulging, and influencing
What is the Third Foundation?
Pay cash for your car.
Pay cash for college.
Save for retirement.
Create a monthly budget.
While saving money isn't easy at first, it will make your life a lot ________ in the future if you make it a habit now.
Easier
Harder
Poorer
Longer
Which of these would count as a legitimate reason to use your emergency fund?
You forgot to budget for your mom's birthday gift
You have a fancy event coming up but you already spent all of your Clothing budget category
The smartphone you've wanted just went on sale
Your car battery died
Something that credit card commercials don't show you is . . .
People making payments for months or years on those credit card purchases
How much your credit score will grow right away
How happy your parents will be that they don't have to lend you cash anymore
How great your life will be with payments
Banks and lenders use credit scores to determine . . .
The likelihood that someone is able to repay debt
A person's financial responsibility
How much collateral someone has available to put up for a loan
How successful someone is
When you finance a new car, you will end up paying more than the sticker price.
True
False
While it may not always appear so, the majority of Americans live paycheck to paycheck.
True
False
Your greatest tool to building wealth is _____________.
Tax cuts
Single stocks
Your income
Your credit score
What is The Second Foundation?
Get out and stay out of debt
Save a $500 emergency fund.
Pay cash for your car.
Build wealth and give.
Credit card companies make the most profit from _____________.
Incentive programs with banks
Partnering with companies to offer rewards to customers
Government tax breaks
Charging interest to customers who only pay part of their monthly debt
Which is an example of an appreciating asset?
A computer used for business purposes
A new car purchased within the past 6 months
A piece of farming equipment
A home
Once you turn 18, you should regularly check your credit report . . .
For errors or signs of identity fraud
To make a plan for improving your credit score
To keep an eye on your credit score
Only if you have a credit card
The debt snowball method involves . . .
Waiting until the winter months to begin paying off debt
Paying off debts from largest to smallest
Pooling together money from other people to pay off your debt
Paying off debts from smallest to largest
Predatory lenders get their negative reputation from . . .
Limiting the amount of time a borrower has to use a loan
Taking advantage of people during the Great Depression
Charging high fees for loans and targeting desperate people
Discreetly selling personal bank information
When you buy with credit, you typically spend more than you would with cash or a debit card.
True
False
The smartest way to buy a car is to _____________.
Lease it
Finance it but pay the debt as quickly as you can
Take out a personal loan for it
Pay for it in cash
What is the best way to avoid falling into debt?
Use credit to pay for large expenses now so that you have plenty of time to pay it off.
Only buy things that you can purchase with cash.
Use airline miles earned through a credit card to help pay for a vacation.
Take out a small loan for any purchases over $1,000.
The ____________ is the total amount of the car loan, plus taxes and fees.
Principal
Value
Interest
Term
Many high schoolers get so caught up in the idea of the college experience that they don't think critically about . . .
Their high school GPA
How their college choice will affect their financial future
Their dream job
What requirements they need to get into college
Part of making a plan to ______ involves searching for scholarships, saving, and talking with your family about what kind of financial help you'll get.
Pay cash for college
Live in a dorm
Take out a student loan
Get good grades
You can fund your education by finding the right mix of ______, ______, and ______.
Cash; loans; grants
Grants; scholarships; work
Work; loans; cash
Scholarships; trust funds; federal aid
It takes the average person ______ to pay off their student loan debt.
20 years
10 years
5 years
2 years
Private student loans typically have a higher interest rate than federal student loans.
True
False
Scholarships are a great way to fund your education because you don't have to . . .
Pay them back
Be a student
Apply for them
Write an essay
Most students don't consider that they'll end up paying far more than the original amount they borrowed on their student loans because of ______.
The debt snowball
Higher income
Interest rates
Monthly payments
What is The Fourth Foundation?
Pay cash for college
Pay cash for your car
Save a $500 emergency fund
Build wealth and give
Your college degree will only cost you the tuition, nothing more.
True
False
Withholdings and deductions are . . .
Examples of deficit spending
Expenses that are taken out of your paycheck
Categories of a good budget
Money that the government gives back to you
The tax on the purchase of goods or services is called _________.
Consumption tax
Purchase tax
Income tax
Goods and services tax
The money you earn hourly for your time and effort at work is called your _____________.
Wages
Salary
Minimum wage
Income tax
What does the Form W-4 estimate?
How much tax you'll owe based on your personal situation
How much income you should be making
How much money you'll spend in that fiscal year
How many tax returns you need to submit
Every American who earns an income must file a __________ each year.
Tax deduction
Paycheck
Tax extension
Federal tax return
When you make ________ money, you will pay ________ in taxes.
More; more
More; less
Less; more
More; the same amount
If you work and earn money, you will have to pay taxes.
True
False
When you buy clothes or check out at the grocery store, you will pay _____________.
With your tax credit card
Sales tax
Excise tax
Income tax
A fixed, annual rate of pay that doesn't change by working more or fewer hours is called _______.
Salary
Hourly wages
Passive income
Commission
When someone says they need to file their taxes, they're talking about filling out a __________.
Federal tax return
Form W-4
Tax liability
Tax bracket
Property tax, inheritance tax, estate tax, and gift tax are all examples of ____________.
Income tax
Family tax
Paycheck tax
Wealth tax
The deadline for filing your income tax return usually falls on __________.
April 15
October 13
August 15
July 4
Net income is also called your __________.
Gross income
Fiscal year
Discretionary spending
Take-home pay
You can produce __________ by buying and selling stocks, bonds, mutual funds, and real estate.
A large income
Tax deductions
HSAs
Portfolio/investment income
Those who properly fill out their Form W-4 shouldn't have too much or too little taxes withheld.
True
False
Using online tax software or hiring a tax professional are both good options, depending on your situation.
True
False
Getting a big tax refund is not necessarily a good thing.
True
False
Always keep your filed taxes for at least three years in case the IRS decides to ______ your tax return.
Audit
Review
Reject
Submit
Which of the following is a good habit to help you save money consistently?
Setting up automatic transfers to a savings account
Waiting until the end of the month to see what's left
Only saving when you get a bonus
Spending first and saving what's left
What is one advantage of creating a monthly budget?
It helps you track your spending and reach financial goals
It guarantees you will never overspend
It makes shopping more complicated
It allows you to avoid paying bills
Which of the following is the safest way to pay for a large purchase?
Saving up and paying in cash
Borrowing money from friends
Taking out a payday loan
Using a credit card and paying minimum payments
What is the recommended investment strategy mentioned by Dave Ramsey?
Investing in individual stocks
Investing in index funds
Investing in growth stock mutual funds
Investing in real estate
Which type of mutual fund is considered the most stable?
Growth and income fund
Aggressive growth fund
International fund
Global fund
What is the main reason for retirement success according to Dave Ramsey?
Choosing the right mutual funds
Having a high income
Consistently investing over time
Following stock market trends
What is the recommended approach when investing in mutual funds?
Invest in funds with the highest returns
Invest in funds recommended by friends
Invest in funds with a long track record
Invest in funds with low fees
Which type of mutual fund is known for its high volatility?
Growth and income fund
Aggressive growth fund
International fund
Global fund
What is the main reason people lose money when investing?
Lack of knowledge and understanding
Choosing the wrong financial advisor
Investing in high-risk stocks
Not investing enough money
What is the recommended Dave Ramsey approach when seeking financial advice?
Trust the advice of salespeople
Seek advice from friends and family
Choose someone with a teaching mindset
Rely on personal intuition
What is the fiduciary duty?
Legal concept imposed by a fiduciary when making decisions for another's benefit.
The lowest standard when a wealth manager is making investment decisions for others.
