Financial Literacy Practice Review

Question 1

Your monthly take home salary is $4,000/month. Using the 50, 30, 20 rule, how will you allocate (divide) your paycheck?

Accepted Answer

$2,000 to needs, $1,200 to wants, $800 to savings

Question 2

Car Insurance = $250; due in 5 months. You plan to save for it in equal amounts, how much should you save per month?

Accepted Answer

$50

Question 3

Your monthly expenses = $3,200. An emergency fund should have 3-6 months of expenses, what is your savings range goal?

Accepted Answer

$9,600 - $19,200

Question 4

Say you are buying a package of toilet paper that costs $12. There are 6 rolls total. What is the Unit Price?

Accepted Answer

$2.00

Question 5

You are paid biweekly. How many times do you get paid per year?

Accepted Answer

26

Question 6

What is a key reason to build an emergency fund?

Accepted Answer

To cover unexpected expenses like car repairs or medical bills

Question 7

What is the main purpose of a personal budget?

Accepted Answer

To track income and expenses to manage money effectively

Question 8

You have a monthly income of $3,000. Following the 50/30/20 rule for budgeting, how much should you save/invest?

Accepted Answer

$600

Question 9

Which of the following is considered a "want" under the 50/30/20 budgeting rule?

Accepted Answer

Streaming Subscriptions

Question 10

Which one of these is NOT part of the 50/30/20 rule?

Accepted Answer

30% goes towards retirement

Question 11

You want to save $6,000 in 12 months for a vacation. How much should you save each month?

Accepted Answer

$500

Questions 11