WorksheetsInvestment and Credit Concepts
Total questions: 40
Worksheet time: 26mins
$500 for teens; $1,000 for adults
What is a credit score?
a three-digit score that tells lenders how much money you make each year.
A five-digit numerical rating that reflects how likely you are to repay your debt.
A three-digit numerical rating that reflects how likely you are to repay your debt.
A credit score is a five-digit numerical rating that reflects how likely you are to fail at paying your debts
What does it mean to budget?
reevaluating your savings account yearly
an estimate of income and expenses for a set period of time
adding up all of your income
your financial goals
Which of the following is NOT a reason to budget?
helps you meet your financial goals
locates where your money is going
prevents you from saving money
sheds light on bad spending habits
Fixed expenses are...
costs that are necessary and stay the same amount each month
costs that are necessary, but the amount that you spend differs from month-to-month
costs that are easily changed, reduced, or eliminated.
income not spent, but rather putting money aside for big purchases, emergencies, the future, etc.
How often should you reevaluate your budget?
yearly
monthly
weekly
quarterly
What is a variable expense?
costs that are easily changed, reduced, or eliminated
costs that are necessary and stay the same amount each month
income not spent, but rather putting money aside for big purchases, emergencies, the future, etc.
costs that are necessary, but the amount that you spend differs from month-to-month
Which of the following is NOT an example of flexible expense?
going out to eat
making a car payment
going to a vacation
getting your nails done
What is an example of a fixed expense?
food
electric bill
auto insurance
clothing
If you go over your budget, what is a way to cut down on expenses?
eat out less
go to the movies less
skip out on a concert
all of the above
What is comparison shopping?
Making an unplanned or quick purchase without giving it much thought.
looking at products and prices at different stores before making a purchase.
What is impulse shopping?
Making an unplanned or quick purchase without giving it much thought.
looking at products and prices at different stores before making a purchase.
What is gross pay?
Your income before taxes are taken out.
Your income after taxes are taken out.
What is net pay?
Your income before taxes are taken out.
Your income after taxes are taken out.
Card that allows you to buy goods & services that you will pay for later
Debit Card
Expense
Checking Account
Credit Card
Something you own that has value and the ability to increase in value.
Liability
Expense
Asset
Credit Card
Something you own that loses value and takes money out of your pocket.
Liability
Expense
Asset
Credit Card
Which of the following scenarios demonstrates a good budgeting practice?
Julie’s monthly income is less than his monthly expenses.
Carly’s monthly taxes are equal to her monthly expenses.
Rico spends less money each month than he earns at his job.
Sam spends more money each month than he earns at his job.
Use the information to answer the question.
“I turned 16 this past November. I am getting a job at the shoe store at the mall.”-Pedro Garcia, High School Student
Which of the following BEST describes what Pedro can expect at his new job?
The shoe store will receive taxes from Pedro, which the owners can use to purchase more shoes.
The shoe store will receive income from Pedro, which will allow the owners to earn greater profits.
Pedro will receive income in exchange for his labor, which he can use to purchase goods he wants.
Pedro will receive income in exchange for his labor, which will allow him to quit and never have to work again.
Use the information to answer the question.
Coca Cola and Pepsi produce a similar product. How will competition between the two companies MOST LIKELY affect consumers?
The companies will each try to raise the price of the product in order to drive up demand.
The companies will each try to produce a better version of the product and sell it at a lower cost to consumers.
The companies will each try to reduce production costs, lowering the quality of the product available to consumers.
The companies will each try to make less of the product, which will result in increases in consumer demand and price.
Why is competition good for consumers?
allows customers to buy goods and services on credit.
encourages customers to save their money instead of spending it.
guarantees that consumers can purchase anything they want at any time.
encourages businesses to offer consumers low prices and quality products.
Tom has a Lemonade stand. What is MOST LIKELY to happen if Tom changes the price of a glass of lemonade from $2.00 to $1.00?
Tom will lose all of his customers
Tom will not make any money at all
More people will buy lemonade from Tom
Fewer people will buy lemonade from Tom
How do you calculate your Net Worth?
Spending all your income
A savings account
Liabilities - Investments = Net Worth
Assets - Liabilities = Net Worth
Building wealth is not accomplished overnight and often takes:
being unrealistic
not planning, winging it
a budget and setting financial goals
making contributions to daily expenses
A period of temporary economic decline during which trade and industrial activity are reduced; generally identified by a fall in gross domestic product (GDP)
recession
failure
crash
