Financial Literacy

Question 1

True or False: A financial goal is a target you set for how you manage your money.

Accepted Answer

True

Question 2

What happens if you don’t have enough money in your bank account to cover a purchase?

Accepted Answer

Your transaction may be declined, or you could face overdraft fees

Question 3

If your monthly income is $2,000 and your monthly expenses are $2,500, what is your financial situation?

Accepted Answer

Overspending

Question 4

What is a variable expense?

Accepted Answer

An expense that changes from month to month

Question 5

What is the best way to start saving money?

Accepted Answer

Set a specific amount aside before spending

Question 6

What is the best reason to have an emergency fund?

Accepted Answer

To be prepared for unexpected expenses

Question 7

What is discretionary spending?

Accepted Answer

Money spent on wants rather than needs

Question 8

True or False: If you don’t track your spending, it is still easy to know exactly where your money is going.

Accepted Answer

False

Question 9

If you get a raise at work, what should you do first?

Accepted Answer

Adjust your budget and consider increasing savings

Question 10

A budget only works if you follow it consistently.

Accepted Answer

True

Question 11

Which of the following is an example of a fixed expense?

Accepted Answer

Rent/Mortgage

Question 12

What is the primary purpose of a budget?

Accepted Answer

To track income and expenses

Question 13

A “need” is something essential for survival, while a “want” is something that is nice to have but not necessary.

Accepted Answer

True

Question 14

If you consistently spend more than you earn, you will go into debt.

Accepted Answer

True

Question 15

What does the 50/30/20 rule recommend for budgeting?

Accepted Answer

50% on needs, 30% on wants, 20% on savings

Questions 15