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Financial Literacy Test Prep Flashcards | StudBud
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Financial Literacy Test Prep
Financial Literacy Test Prep
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1
Debt is owing money to anyone for any reason.
True
False
2
How can creating a budget make you feel powerful?
You can't really budget unless you have an important job
Budgeting is extremely easy leaving you with time to spend on other things.
A budget puts you in control of your spending & saving
People who budget earn more money and live a better life.
3
Your paycheck says your gross pay is $250 and your net pay is $200, how much were your deductions?
$450
$50
$250
$200
4
What would be your gross pay if you make $8 an hour and work 10 hours a week
$80
$80, minus any taxes you have to pay
$80, plus any taxes you have to pay
$8
5
Who has to pay taxes to the US Government?
Anyone who owns a home or attends a public school
Every citizen, regardless of age or working status
No one has to- taxes are voluntary
Every person or company that earns income in the US
6
Using a credit card means you _____________ to buy stuff.
barter clothing
use cash
use debt
never decide
7
Which question would help you determine if an item at the mall is a need or a want?
Will my teacher be excited if I buy this item, or dissapointed?
Will something bad happen if I don't have this item?
Do any of my friends have this item?
How happy will this item make me?
8
Why should you use Net pay when creating a budget?
Your employers knows what your gross pay is, you only know your net pay
Your net pay is how much you actually have available to spend or save
You determine your budget by deducting taxes from your net pay
You net pay is always higher, giving you more to spend
9
Investments are things that are purchased with the expectation that they will _______________
Decrease over time
Diminish in results
Grow in value
Grow too slowly
10
It's important to have a(n) __________________ for what you are going to do with your money.
Desire
Plan
Idea
Wish
11
How much did this employee pay in deductions?
$15,921.52
$0
$692. 24
$50
12
What percentage of personal finance is head knowledge?
80%
30%
%50
20%
13
How much money has this employee earned in gross pay?
2,000.00
46,000.00
1,307.76
30,078.48
14
If you are using the 50/30/20 rule for budeting, how will you split your budget?
50% Needs, 30% Wants, 20% Savings
50% Budget, 30% Needs, 20% Wants
50% Savings, 30% Needs, 20% Wants
$50 Needs, $30 Wants, $20 Savings
15
Spenders will naturally __________money.
Save
Spend
Hoard
Collect
16
Savers will _____________ save money.
Conditionally
Naturally
Forget to
Never
17
____________________ people are not fun to be around.
Compassionate
Selfish
Thoughtful
Entertaining
18
Why is it important to be able to decide if an item is a need or a want?
Needs can be very expensive but wants usually aren't so don't need tracked.
You need 2 separate budgets: 1 for needs, and a different 1 for wants.
You should budget for Needs 1st then decide what you can spend on wants.
Needs are worth spending money on, but never wants
19
All of the following items represent services provided by the Federal Government except one which is a personal expense
Auto Insurance
NASA Space Program
Military Protection
Medicare and Medicaid
20
The two main portions of a budget are:
The money coming in (expenses) and the money you're spending (income)
The cash you are spending in stores and the bills you're paying online
The items you want to buy and the money you need to save for retirement
The money coming in (income) and the money you're spending (expenses)
21
All of the following are budgeted as "Monthly Bills" except:
Cell Phone Plan
Renter's Insurance
Rent
Clothing
22
What would be a valid reason to upgrade to unlimited data on your cell phone plan?
Working on homework during your hour long bus ride to & from school
Needing to check on all of your social media accounts each day
It would allow you to play video games with friends when you're not at home
You need the extra data because you like watching movies.
23
The federal government budgets it's tax money on 3 main areas of expenses: Mandatory Spending, discretionary spending, &
Budget Funds
Interest on debt
Free Programming (Medicare, Food Stamps, etc)
The Constitution
24
__________________ on credit is a fee you pay on top of the money you already owe.
Savings
Interest
Mortgage
Equity
25
You can give by giving of your time.
True
False
