Which financial habit will improve your credit score the most?

Paying your credit card bills on time

What does the 50/30/20 rule suggest?

50% needs, 30% wants, 20% savings/investments

Which of the following is a smart long-term investment strategy?

Diversifying across multiple assets to reduce risk

What happens during inflation?

Prices of goods and services go up

Why is investing important?

It helps grow your money over time

Why should you create budget?

To track your spending and save money

Why is financial literacy important?

It helps you make smart money decisions and plan for the future

What is the main difference between saving and investing?

Saving is safer, investing helps your money grow

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Financial Literacy

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Questions 10

Answers

1
Which financial habit will improve your credit score the most?
Only using debit cards
Paying your credit card bills on time
Applying for multiple credit cards at once
Keeping a $0 balance on your credit card at all times
2
What does the 50/30/20 rule suggest?
50% needs, 30% wants, 20% savings/investments
50% investing, 30% savings, 20% fun
50% wants, 30% needs, 20% savings
50% savings, 30% needs, 20% wants
3
Which of the following is a smart long-term investment strategy?
Buying things that loose value overtime
Investing all your money in one trending stock
Waiting until retirement to start investing
Diversifying across multiple assets to reduce risk
4
What happens during inflation?
People spend less because prices drop
Prices of goods and services go up
Money becomes worth more
Everything becomes cheaper
5
Which of the following is NOT a way to invest money?
High-interest savings accounts
Starting a business
Keeping cash under your bed
Mutual funds
6
Why is investing important?
It means you don’t have to save money
It eliminates financial risks
It guarantees you’ll be rich
It helps grow your money over time
7
Why should you create budget?
To make shopping more fun
To spend more money on wants
To track your spending and save money
To avoid using a debit card
8
Why is financial literacy important?
It guarantees you will become rich
It eliminates the need for budgeting and saving
It helps you make smart money decisions and plan for the future
It ensures you will never face financial challenges
9
What is the main difference between saving and investing?
Saving is safer, investing helps your money grow
Saving is only for emergencies
Saving always makes you rich
Investing has no risks
10
Which of the following is an example of a need?
Netflix subscription
Concert tickets
Rent or phone bill
New sneakers

Financial Literacy Flashcards | StudBud