Financial Literacy - Pre-Test

What is financial literacy?

• Knowing and understanding how finances work

• Being able to read numbers

• Getting good grades in algebra

• Getting good grades in math

People who do not understand the difference between ______________ usually struggle with financial problems.

• Food and shelter.

• Taxes and insurance.

• Needs and wants.

• Buying and renting.

A _______________ is a plan for how you will spend your money.

• Paycheque

• Cash journal

• Credit card

• Budget

Developing a financial lifestyle that fits the amount of money you will earn in your career and is the secret to financial success is called:

• A money management program

• A journey driven lifestyle

• A lifestyle driven journey

• None of the above

Many celebrities, professional athletes, and entrepreneurs—people who can afford to live their desired lifestyles—have goals for their personal and professional achievements. Why do these successful people set goals?

• A. Goal-setting allows them to measure progress toward accomplishments or lifestyle changes they desire.

• B. Setting goals provides them with direction.

• C. Goal-setting gives them an opportunity to show off to others.

• D. Both “a” and “b.”

Which of the following states the five important components of a good goal?

• General, revised, active, safe, sound.

• Specific, measurable, achievable, realistic, time-driven.

• Written, clear timeline, research-based, influenced by family, influenced by friends.

• All of the above.

How can I start setting personal goals now?

• A. Daydream, think about or research the type of lifestyle you want to live, and write down ideas.

• B. Organize all of your past accomplishments into an organized timeline.

• C. Create a folder for school and extracurricular activities.

• Both “b” and “c”.

How can automating my finances save me time, protect my credit, and earn me extra money?

• A. Having bills paid automatically will save time and setting up direct deposits from your employer means maximum interest each month.

• B. Automating your finances cannot protect your credit or help you earn money.

• C. It organizes all your accounts in one place that can easily be reviewed and updated online, and ensures bills are paid on time to protect credit.

• D. Both “a” and “c.”

Choose the answer that best describes how to automate your finances.

• Keep track of all the bills you pay on a spreadsheet, have a written budget, and set up an account with a bank or credit union.

• Have your employer direct deposit your paycheque, set up automatic bill-pay, set up automatic transfers to your savings account, and track all your finances online.

• Have all the companies you owe deduct their monthly payments directly from your checking account.

• All of the above.

What first step should I take to automate my finances?

• Graduate high school.

• Write a budget.

• Check your credit scores.

• Open a checking and savings account.