WorksheetsFinancial Literacy Quiz
Total questions: 43
Worksheet time: 24mins
Which term refers to the knowledge and skillset that allows an individual to make informed financial decisions?
Financial literacy
Ethical behavior
Compound interest
A "need" is best defined as something that is:
Desired for entertainment
Necessary for survival
Purchased with a credit card
Which of the following is an example of a "want"?
Clean water
Basic groceries
A new video game
What is "opportunity cost"?
The cost of the next best alternative given up
The total cost of all alternatives
The financial cost of a decision
Which of the following is a key component of personal financial responsibility?
Ignoring monthly bank statements
Relying on others to pay your bills
Managing your money to reach long-term goals
Spending all your money on luxury items
What is the first step in a typical decision-making process?
Identify the goal or problem
Evaluate the results
Choose the best alternative
Create a financial plan
When a person makes a decision based on their "code of conduct," they are:
Following their personal rules for right and wrong
Trying to find the lowest price available
Copying the spending habits of their friends
Ignoring their financial goals
A long-term goal is a goal that you want to achieve in:
Less than three months
Six to twelve months
More than five years
Which factor most influences a person's financial choices?
Peer pressure and media
The location of the nearest bank
The color of the paper money
A person’s reputation can be impacted by their:
Choice of clothing brand
Financial choices and ethical behavior
Ability to run a fast mile
Which of the following is an example of an "economic influence" on your money?
Current inflation rates
Your personal favorite hobby
The type of music you listen to
What is a "consequence"?
The reason why you want to buy something
The result of an action or decision
The amount of money you save
"Keeping up with the Joneses" refers to:
Working a second job to earn more
Spending money to match the status of others
Investing in a neighbor's small business
Which of these is an example of a variable expense?
A monthly rent payment
A car insurance premium
The cost of gasoline for a car
Delayed gratification means:
Waiting to buy something until you have saved for it
Buying something now and paying for it later
Never buying the items that you need
Which of these describes "scarcity" in personal finance?
Having too much money and not enough to buy
Having unlimited wants but limited resources
When a store has a holiday sale
If you have a goal to save $500 in 5 months, how much must you save per month?
$100
$50
$200
Which is a characteristic of an "ethical business"?
Hiding the true cost of a product from customers
Treating employees and customers with fairness
Focusing only on profit regardless of the law
Why is it important to review your financial plan regularly?
To see if your goals or circumstances have changed
Because the bank requires you to do it daily
To find ways to spend more money on "wants"
In finance, "liquidity" refers to:
How easily an asset can be turned into cash
The amount of debt a person owes
The interest rate on a credit card
An "incentive" is something that:
Prevents you from making a decision
Encourages you to behave in a certain way
Is a tax you must pay to the city
Which of the following is a "fixed" expense?
Monthly gym membership fee
$50
$250
What does the "S" in SMART goals stand for?
Standard
Specific
Savings
Peer pressure can lead to:
Better long-term savings habits
Spending money on things you don't actually need
Understanding the stock market better
A "financial plan" is:
A list of all the things you have already bought
A roadmap for achieving your financial goals
A contract between you and a car dealership
Which of these is a risk of poor financial planning?
Having an emergency fund
Overspending and accumulating debt
Saving for retirement
When choosing a career, you should consider:
Potential income and job satisfaction
Number of vacation days only
Colors of the company logo
What is "net worth"?
The total amount of cash in your pocket
The difference between what you own and what you owe
The amount of money you make in one year
A "standard of living" is:
The minimum amount of money needed to survive
The level of wealth and comfort available to a person
A rule about how many people can live in a house
Why do people use "comparison shopping"?
To buy the first item they see in a store
To find the best value for their money
To ensure they spend the most money possible
Which of the following expenses should be included in a typical budget?
taxes
charitable giving - charities
savings
All of the expenses should be included in a typical budget
Which of these is a need?
clean air
new jeans
cool sneakers
your favorite candy
Which of these is a want?
food
water
shelter
smartphone
Where would heavy, warm clothing be a true need?
nowhere
everywhere
in a town with a cold, snowy climate
in a very big city with a sunny climate
Need or want?
Need
Want
A want is something we would like to have but could easily live without it.
True
False
