WorksheetsQuiz: Financial Literacy
Total questions: 15
Worksheet time: 8mins
Name
Class
Date
1.
What is the main difference between a luxury item and a necessity?
a)
Luxuries are things we need to survive, while necessities are extra items.
b)
Necessities have many alternatives, while luxuries do not.
c)
Luxuries are items we can live without, while necessities are essential for survival.
d)
Necessities are usually more expensive than luxuries.
2.
According to the 50/30/20 rule, what percentage of your income should go toward savings?
a)
30%
b)
20%
c)
50%
d)
10%
3.
What does the 50% in the 50/30/20 rule represent?
a)
Money spent on entertainment
b)
Money spent on rent, food, and other essentials
c)
Money put into savings
d)
Money used for paying off credit cards
4.
What is one way to save money?
a)
Spend 50% of your income on entertainment
b)
Save at least 20% of your income
c)
Borrow money frequently
d)
Avoid using credit cards
5.
When borrowing money, what is the maximum percentage of your yearly net income that you should borrow (excluding housing debt)?
a)
10%
b)
15%
c)
20%
d)
30%
6.
Which of the following is an example of non-housing debt?
a)
Mortgage payments
b)
Car loans
c)
Rent payments
d)
Property taxes
e)
Option 5
7.
Why is credit important?
a)
It helps you borrow money for big purchases.
b)
It guarantees that you will always have money.
c)
It allows you to spend more than you earn.
d)
It eliminates the need to save money.
8.
Which of the following is NOT a good way to build credit?
a)
Paying all bills on time
b)
Opening a savings account and making regular deposits
c)
Bouncing checks frequently
d)
Establishing a steady work record
9.
How can a parent help a teenager start building credit?
a)
By making them apply for a large personal loan
b)
By adding them as an authorized user on their credit card
c)
By opening a joint bank account
d)
By paying all their bills for them
10.
How can you avoid paying interest on a credit card?
a)
Always carry a balance
b)
Never pay the credit card
c)
Pay the full balance at the end of each month
d)
Make only the minimum payment each month
11.
Which of the following are considered necessities? Select 3
a)
Food
b)
Rent
c)
Designer clothing
d)
Internet for school or work
12.
What are good ways to build credit responsibly? Select 3
a)
Open a savings account and make regular deposits
b)
Apply for multiple credit cards and max them out
c)
Get a co-signer on a loan and repay it on time
d)
Make regular, on-time payments on a small credit card
13.
Borrowing more than 20% of your yearly net income (excluding mortgage debt) is a good financial decision.
a)
True
b)
False
14.
Credit cards are always bad and should be avoided.
a)
True
b)
False
15.
Paying your full credit card balance at the end of the month helps you avoid interest charges.
a)
True
b)
False
100 %
