Mastering Financial Literacy Basics

Front

What is a budget?

Back

A plan for managing income and expenses

Front

Which of the following is a fixed expense? Groceries, Rent, Entertainment, Clothing

Back

Rent

Front

What is the primary purpose of a credit score?

Back

To assess your creditworthiness

Front

Which factor has the largest impact on your credit score? Options: Length of credit history, Types of credit used, New credit inquiries

Back

Payment history

Front

What is a stock?

Back

A share in the ownership of a company

Front

Which of the following is a benefit of investing in a mutual fund? Guaranteed returns, Professional management, No risk involved, Immediate liquidity

Back

Professional management

Front

What is the difference between a savings account and a certificate of deposit (CD)?

Back

CDs typically offer higher interest rates but require funds to be locked in for a set period.

Front

How can a high school student start saving for college?

Back

By setting up a 529 college savings plan

Front

What is the main advantage of a 529 college savings plan?

Back

Tax-free growth and withdrawals for qualified education expenses

Front

Which type of insurance is typically required by law for drivers?

Back

Auto insurance