WorksheetsPersonal Money Management
Total questions: 13
Worksheet time: 7mins
Which of the following BEST describes income? Choose two correct answers.
Income is limited
Income is received from luck.
Income is received from work.
Income is equal for all people
Income is received from personal connections.
Which of the following is an example of a source of income earned by someone trading their labor for monetary compensation?
money given as a gift
wages from a part-time job
spousal support following a divorce
earnings from financial investment
Fatima is preparing a personal budget to help better manage her income. What must Fatima balance when preparing her budget?
interest and credit
interest and saving
spending and credit
spending and saving
For which of these individuals would developing and maintaining a budget be MOST important?
Dennis earns a low income, but he does not have any debt and spends less than he earns each month.
Corbin earns a high income and a lot of debt and he spends more than he earns each month.
Nancy earns a low income and a lot of debt, but she pays off a little bit each month and does not spend much.
Camile earns a high income and sets aside the majority of what she earns in savings.
In which situation would saving money be most important?
Damon wants to lower the amount of taxes he pays.
Allen wants to reduce the cost of his monthly expenses.
Haylee wants to earn a higher salary from her employer.
Elise wants to buy a new computer without going into debt.
How does saving money help people avoid debt?
by helping them reduce interest payments
by helping them get approved for loans
by helping them apply for credit cards
by helping them cover unforeseen expenses
Who would likely be most prepared to pay for an unexpected, necessary medical procedure?
a person who has multiple credit cards for which payments are made each month
a person who owes a large amount to a financial institution for a previous loan
a person who earns commission in addition to a set weekly salary
a person who saves a large portion of his or her monthly income
11. Saving is BEST described as:
Putting aside money for future use
Spending all your money immediately
Borrowing money from a bank
Investing in risky stocks only
How does saving money help people avoid debt?
by helping them reduce interest payments
by helping them get approved for loans
by helping them apply for credit cards
by helping them cover unforeseen expenses
Who would likely be most prepared to pay for an unexpected, necessary medical procedure?
a person who has multiple credit cards for which payments are made each month
a person who owes a large amount to a financial institution for a previous loan
a person who earns commission in addition to a set weekly salary
a person who saves a large portion of his or her monthly income
Which answer choice BEST describes saving?
setting aside money for future use
loaning money to another individual
earning money in exchange for work
planning how to spend one's income
Which is a benefit of using a credit card?
It accumulates wealth over time.
It accumulates interest on purchases.
It allows you to establish a credit history.
It allows you to borrow money free of interest.
Which TWO situations BEST describe reasons to use a credit card?
Allison makes occasional small purchases with a credit card with a low limit to build up her credit score.
Ellie used her credit card to buy a new purse that she really wanted, even though she doesn't get paid until next Friday.
Ray charges his groceries on a credit card, and he uses the money from his grocery budget to pay the card off each month.
Logan used his credit card to buy groceries for the reward points, even though he did not pay off the balance from his charges last month.
Nicole wants a pair of shoes that cost 100,butsheonlybudgeted 75 for shoes this month. She is going to use her credit card to purchase the new shoes.
