WorksheetsPersonal Finance — Chapter 1 Key Terms & Definitions
Total questions: 20
Worksheet time: 7mins
Which term describes how a person manages their money, including earning, spending, saving, and giving?
Net income
Financial plan
Personal finance
Financial literacy
Money that is owed to someone else is called what?
Debt
Expense
Asset
Credit
Which term means borrowed money that must be paid back later?
Credit
Interest
Liability
Net worth
What is the extra money paid for borrowing money?
Expense
Interest
Net income
Asset
The percentage charged for borrowing money is known as what?
Loan shark
Interest rate
Net worth
Financial goal
Which statement best defines a financial plan?
A list of your assets and debts
A schedule of paychecks
A plan for how to manage money
A record of monthly expenses
Net worth is calculated as which of the following?
Credit minus interest
Savings minus expenses
Assets minus liabilities
Income minus taxes
Which item is something you own that has value?
Asset
Debt
Expense
Liability
Which term refers to money you owe or financial obligations?
Debt
Expense
Liability
Interest
When what you own is worth more than what you owe, you have which type of net worth?
Positive net worth
Net income
Negative net worth
Credit score
Living with little or no money left after paying bills is called what?
Balanced budget
Paycheck to paycheck
Financial literacy
Saver lifestyle
Understanding how to manage money wisely is best described as what?
Financial literacy
Financial goal
Net income
Expense tracking
A person who prefers to save money is called what?
Lender
Consumer
Saver
Spender
A person who prefers to spend money is known as what?
Borrower
Spender
Saver
Consumer
Which term describes the money you earn after taxes are taken out?
Allowance
Gross pay
Net income
Interest rate
Money spent on goods or services is called what?
Liability
Expense
Credit
Asset
Targets a person sets for their money, such as saving or paying off debt, are called what?
Income plans
Credit policies
Budget rules
Financial goals
Which options are considered liabilities? Select all that apply.
Savings account
Credit card debt
Car you own outright
Student loan balance
Which choices increase your net worth? Select all that apply.
Owning valuable assets
Taking on new debt
Missing bill payments
Adding money to savings
Which situation most likely leads to negative net worth?
Assets greater than debts
Debts greater than assets
Equal assets and debts
No income or expenses
