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Financial Literacy Flashcards | StudBud

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Financial Literacy

14 terms·StudBud Administration

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Questions 14

Answers

1
What is a budget?
An investment strategy
A spending plan
A savings account
A loan agreement
2
How often should you review your budget?
Every week
Once a year
Every month
Only when needed
3
What is a good debt-to-income ratio?
30% or lower
50% or higher
20% is too low
40% is ideal
4
How often should you check your credit report?
Only when applying for loans
Once a year
Every month
Never needed
5
What is the first step in financial planning?
Invest in stocks
Assess your situation
Buy insurance
Set a budget
6
Which is a fixed expense?
Rent
Groceries
Entertainment
Clothing
7
Which is a benefit of investing early?
More time to grow
Less risk
Higher taxes
Fewer options
8
What is an emergency fund?
Funds for investments
Savings for emergencies
Cash for daily expenses
Money for vacations
9
What is a 401(k)?
A type of loan
Retirement savings plan
Investment account
Insurance policy
10
What is the purpose of insurance?
To avoid risks
To protect assets
To increase expenses
To waste money
11
What does APR stand for?
Average Payment Rate
Annual Percentage Rate
Annual Payment Ratio
Adjusted Price Rate
12
True or false: budgeting is unnecessary for savings
False
True
13
How can you improve your credit score?
Max out credit cards
Avoid all loans
Close old accounts
Pay bills on time
14
What is a credit report?
Your financial history
A savings plan
A summary of debts
A loan application