3rd Block Personal Finance Post Test Review

A good rule of thumb is to save _________ of your income

• 1%

• 5%

• 10%

• 50%

The minimum amount you should save for emergencies is ________?

• 1 week of expenses

• 1 month of expenses

• 3 months of expenses

• 1 year of expenses

What does it mean to pay yourself first?

• Buy things you want rather than need.

• Set aside savings before you spend it.

• Don’t save money unless your income is high.

• Spend money on yourself first.

The amount of money you start a savings account with is called the ___________.

• Income

• Principal

• Withdrawal

• Deposit

• Interest

To know how long it will take to double your savings, you divide 72 by the ____________________.

• Withdrawal

• Deposit

• Interest rate

• Income

• Expense

Which type of bank account has the lowest rates of interest but allows you easy access to your money when you need to spend it.

• Checking account

• Savings account

• Certificate of deposit

• Prepaid credit/debit card account

A budget is a balance between your _______________ and _______________. Choose the best pair of words below.

• Debits and credits

• Salary and income

• Needs and wants

• Income and expenses

An example of discretionary spending is…

• The newest video game

• Car payment

• Electricity bill

• Basic groceries

What are the 3 Cs of creditworthiness?

• Character, college, and career

• Credit, character, and career

• Charisma, charm, and capita

• Character, capital, and capacity

Paying your bills on time is an example of ______________.

• Character

• Capital

• Capacity

• Career