What is an allowance?

A set amount of money given regularly, often for chores or responsibilities

What should you do before making a big purchase?

Review your budget and compare prices.

Why should you compare prices before buying something?

To get the best value and save money.

What is the main benefit of using a savings account?

It earns interest and helps grow your money safely.

Which of the following is a good savings goal?

Saving for a school laptop in 6 months.

What does a budget help you do?

Plan your income and expenses to manage money wisely.

Why is a credit score important?

It shows how reliable you are at paying back money.

What does 'pay yourself first' mean?

Put money into savings before spending on anything else.

How can you earn money as a teen?

Tutoring, yard work, babysitting, or part-time jobs.

Which of these is considered a real job that earns income?

Helping a neighbor with yard work.

What is interest in financial terms?

Extra money earned or paid for saving or borrowing.

Why is it risky to only use cash and never have a bank account?

Your money isn't protected or earning interest.

Why do people keep an emergency fund?

To cover unexpected expenses like car or medical bills.

When you pay with a debit card, what happens?

Money is taken from your checking account immediately.

What happens if you spend more money than you earn?

You may go into debt or overdraw your account.

What is the purpose of a checking account?

To store money for daily spending and bill payments.

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Financial Literacy Quiz

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Questions 20

Answers

1
Which expense is most likely to be fixed (same every month)?
Movie tickets
Gas station snacks
Your phone bill or rent.
Fast food meals
2
What is an allowance?
Extra spending money from school.
Money you borrow from your parents.
A surprise gift card.
A set amount of money given regularly, often for chores or responsibilities
3
What should you do before making a big purchase?
Review your budget and compare prices.
Buy it fast before someone else does.
Charge it now and worry later.
Only ask your friends if they like it.
4
Why should you compare prices before buying something?
To waste more time shopping.
So your friends don't buy it first.
To get the best value and save money.
To impress the cashier.
5
What is the main benefit of using a savings account?
It guarantees you'll never lose money.
It earns interest and helps grow your money safely.
It increases how much you can spend.
gives you access to unlimited withdrawals.
6
Which of the following is a good savings goal?
Saving for a school laptop in 6 months.
Letting your money sit in a drawer.
Getting money to buy lunch every day.
Spending all your money on games today.
7
What does a budget help you do?
Automatically save without thinking.
Track how much fun you can have each month.
Plan your income and expenses to manage money wisely.
Avoid spending any money at all.
8
Why is a credit score important?
It shows how reliable you are at paying back money.
It unlocks store rewards and bonuses.
It tells your bank how much money you earn.
It helps you open a checking account.
9
What does 'pay yourself first' mean?
Pay off your credit card right away.
Give yourself a reward after every purchase.
Buy something you really want before saving.
Put money into savings before spending on anything else.
10
How can you earn money as a teen?
Borrowing from friends often.
Waiting for a random check.
Tutoring, yard work, babysitting, or part-time jobs.
Getting daily bonuses online.
11
Which of these is a need, not a want?
Headphones for gaming.
A new pair of designer shoes.
winter coat in cold weather.
The latest smartphone upgrade.
12
Which of these is considered a real job that earns income?
Participating in a school club.
Volunteering at an event.
Leading your class in group projects.
Helping a neighbor with yard work.
13
You earn $10, spend $3.75 on snacks and $1.25 on apps. What's left to save?
$3.00
$4.75
$5.00
$6.00
14
What is interest in financial terms?
A tip given for good customer service.
A service charge banks take from you.
Extra money earned or paid for saving or borrowing.
The price of opening a new account.
15
What is one way to build good credit?
Pay all your bills on time.
Spend more than your credit limit.
Ignore bills until payday.
Open lots of accounts quickly.
16
Why is it risky to only use cash and never have a bank account?
You can't go shopping online.
You'll pay more in taxes.
You might spend more at the bank.
Your money isn't protected or earning interest.
17
Why do people keep an emergency fund?
To invest in risky stocks.
o have extra money for holiday shopping.
earn rewards from spending it fast.
To cover unexpected expenses like car or medical bills.
18
When you pay with a debit card, what happens?
You borrow money from the bank.
You get billed at the end of the month.
Money is taken from your checking account immediately.
You get a loan for future purchases.
19
What happens if you spend more money than you earn?
You may go into debt or overdraw your account.
You automatically earn more.
You get a bonus from the bank.
Nothing - it's totally fine.
20
What is the purpose of a checking account?
To earn high interest over time.
To store money for daily spending and bill payments.
To hide your savings from others.
To borrow money from the bank.

Financial Literacy Quiz Flashcards | StudBud