Income
How does one earn an income?
a) All people inherit their parents' income
b) By working a job and having other investments
c) Income is provided by the government
b) By working a job and having other investments
A budget is best described as…
A. A wish list of things you want
B. A plan for how you will earn, save, and spend money
C. A way to get free money
D. A type of debit card
B. A plan for how you will earn, save, and spend money
A good way to control spending is to…
A. Buy things without checking the price
B. Track what you spend each week
C. Only use cash forever and never plan
D. Spend first and plan later
B. Track what you spend each week
When is using credit usually a better choice?
A. Buying candy because you want it right now
B. Borrowing for something important when you have a plan to repay
C. Buying things even if you can’t afford payments
D. Paying for a want without thinking
B. Borrowing for something important when you have a plan to repay
What is a good approach to planning your career?
a) Take random college classes and see what you like
b) List out your skills and job preferences to see what you might like
c) Select the highest earning career
b) List out your skills and job preferences to see what you might like
What is true about income?
a) Income is infinite and can never run out
b) Income is limited and can run out
b) Income is limited and can run out
If your expenses are greater than your income, you should…
A. Keep spending the same and hope it works out
B. Cut some wants or find a way to earn more
C. Only use a credit card forever
D. Stop tracking money
B. Cut some wants or find a way to earn more
Which of the following is an example of a NEED?
a) Rent
b) Gaming console
c) Concert tickets
d) Netflix
a) Rent
What can happen if you don’t pay back credit card money on time?
A. Nothing—credit is free
B. You may pay interest and owe more
C. The store gives you extra money
D. Your budget automatically fixes it
B. You may pay interest and owe more
If you have many job offers, what does that usually mean?
a) Your career and skills are in high demand
b) Your career and skills are in low demand
c) Demand has no impact on your career
a) Your career and skills are in high demand
You can increase your income by…
A. Spending more money
B. Working more hours or learning skills for a better job
C. Paying with a credit card
D. Ignoring your budget
B. Working more hours or learning skills for a better job
True or False: Once you have made your budget, you should not change it.
False
Which of the following is a WANT?
a) Rent
b) Groceries
c) Laptop
d) Utilities (ex: electricity)
c) Laptop
What is a credit score?
A. The amount of money you earn each month
B. A number that shows how well you handle borrowed money
C. A type of debit card balance
D. The total amount of cash you have
B. A number that shows how well you handle borrowed money
Fill in the blank: The more _______ you receive, the more money you will likely earn in your career.
a) internships
b) awards
c) education and training
c) education and training
Mia earns $12 per hour. She works 5 hours. How much does she earn?
A. $17
B. $24
C. $60
D. $120
C. $60
What is a fixed expense?
a) A cost that can change depending on usage
b) A cost that remains the same each month
c) The added fee to borrowing money
b) A cost that remains the same each month
If I want to purchase something using money in my checking account, what should I use?
a) Credit card
b) Debit card
c) Gift card
b) Debit card
Which statement about risk and investing is most accurate?
A. Younger investors often can take more risk because they have more time
B. Older investors should take the biggest risks possible
C. Risk never matters in investing
D. The safest plan is to invest everything in one thing
A. Younger investors often can take more risk because they have more time
Which career is least likely to be impacted by a poor economy?
a) Nurse
b) Salesman
c) Construction Worker
d) Server
a) Nurse
If Amy's yearly salary is $120,000. How much is she being paid per month?
a) $100,000
b) $12
c) $10,000
d) $12,000
c) $10,000
What is a variable expense?
a) A cost that changes monthly
b) A cost that stays the same every month
c) The cost of borrowing money
a) A cost that changes monthly
What best describes opportunity cost?
a) The cost it takes to produce a product that is then sold to consumers
b) The trade-off of making one financial choice and giving up another
c) The action of exchanging one good or product for another
b) The trade-off of making one financial choice and giving up another
Which situation is an example of a risky investment?
A. Saving money in a bank account
B. Investing in many different companies
C. Putting all your money into a new company's stock
D. Keeping money as cash at home
C. Putting all your money into a new company's stock
Which of the following options would save you the MOST money when planning for college?
a) Attending a public in-state college
b) Attending a private in-state college
c) Attending a public out-of-state college
d) Attending a private out-of-state college
a) Attending a public in-state college