Money
What is the 50-30-20 rule?
50% is for needs
30% is for wants
20% is for savings
What is the purpose of a budget?
A. To track your social media activity
B. To plan how to spend and save your money
C. To record your favorite TV shows
D. To keep track of your exercise routines
. To plan how to spend and save your money
What is credit?
A. Free money from the government
B. Money you borrow that you agree to pay back later
C. Money you find on the street
D. A type of savings account
B. Money you borrow that you agree to pay back later
What is insurance?
A. A type of video game
B. A way to borrow money
C. Protection against financial loss
D. A savings account
C. Protection against financial loss
What is an investment?
A. Spending money on things you want
B. Putting your money into something with the hope that it will grow in value over time
C. Saving money in your bank account
D. Using money to buy gifts for others
B. Putting your money into something with the hope that it will grow in value over time
Which of the following is not considered earned income?
A) Wages from a part-time job
B) Tips from working at a restaurant
C) Birthday money from a family member
D) Payment for mowing lawns
C) Birthday money from a family member
Which of the following is an example of a need rather than a want?
A. A new video game
B. Designer sneakers
C. Rent or housing
D. Concert tickets
C. Rent or housing
Which of the following affects your credit score the most?
A. Your age
B. Your job title
C. Your payment history
D. The number of times you go shopping
C. Your payment history
What do you call the amount you pay each month for insurance coverage?
A. Deductible
B. Premium
C. Interest
D. Deposit
B. Premium
What does the term "diversification" mean in investing?
A. Putting all your money in one stock
B. Spreading your investments across different types of assets to reduce risk
C. Only investing in your favorite companies
D. Investing in just one industry
B. Spreading your investments across different types of assets to reduce risk
What is the main reason to create a personal budget?
A) To pay more in taxes
B) To know what your friends are buying
C) To manage your income and expenses
D) To spend more money
C) To manage your income and expenses
If you earn $200 a month and spend $180, what is your savings rate?
A. 10%
B. 20%
C. 5%
D. 15%
A. 10%
What is a credit card’s interest rate called?
A. APR (Annual Percentage Rate)
B. ROI (Return on Investment)
C. ATM (Automatic Teller Machine)
D. CPI (Consumer Price Index)
A. APR (Annual Percentage Rate)
What does car insurance typically help pay for?
A. Movie tickets
B. Repairs or damage from an accident
C. Gas money
D. New tires
B. Repairs or damage from an accident
Which of the following is an example of a long-term investment?
A. Buying a concert ticket
B. Purchasing stocks in a company and holding onto them for years
C. Renting a car for a weekend
D. Buying a video game console
B. Purchasing stocks in a company and holding onto them for years
You earn $100 a week. You save 20%. How much money are you saving?
A) $10
B) $20
C) $25
D) $50
B) $20
What does “pay yourself first” mean?
A. Spend money before saving
B. Save a portion of your income before spending on anything else
C. Pay your bills before saving
D. Buy something fun after every paycheck
B. Save a portion of your income before spending on anything else
What is one smart way to build good credit as a young person?
A. Max out a credit card and ignore the bill
B. Open multiple credit cards and spend freely
C. Get a credit card and pay it off in full each month
D. Never use credit at all
C. Get a credit card and pay it off in full each month
What is a deductible in an insurance policy?
A. A coupon for discounts
B. The amount the insurance company pays you
C. The amount you have to pay before insurance starts covering costs
D. A monthly fee
C. The amount you have to pay before insurance starts covering costs
What is a stock?
A. A type of loan you give to a company
B. A share of ownership in a company
C. A savings account at a bank
D. A government bond
B. A share of ownership in a company
What is the definition of "inflation"?
A) A drop in prices over time
B) An increase in the value of money
C) A rise in the general level of prices
D) The interest paid on savings
C) A rise in the general level of prices
Inflation means your money buys less than it used to, as prices go up.
What is a credit score used for?
A. To tell how much money is in your bank account
B. To show how well you manage your time
C. To measure your trustworthiness in repaying borrowed money
D. To track your school grades
C. To measure your trustworthiness in repaying borrowed money
What happens if you don’t pay your credit card bill on time?
A. Your credit score might go up
B. You may win a prize
C. You may be charged a late fee and hurt your credit score
D. Nothing at all
C. You may be charged a late fee and hurt your credit score
Why is health insurance important?
A. It helps you buy healthy food
B. It pays you to exercise
C. It protects you from paying high medical bills
D. It gives you free gym membership
C. It protects you from paying high medical bills
What is the main goal of investing?
A. To get rich quickly
B. To save money for a vacation
C. To grow your money over time
D. To spend all your money immediately
C. To grow your money over time