Financial Literacy

What is the importance of setting financial goals?

• Financial goals hinder personal growth

• Having financial goals is a waste of time

• Setting financial goals helps provide direction, motivation, progress tracking, and better decision-making.

• Setting financial goals leads to unnecessary stress

True or False: Creating a budget helps in managing expenses effectively.

• False

• True

• Rarely

• Maybe

How can you distinguish between needs and wants?

• Needs are always physical items, wants are always emotional desires.

• Needs are universal, wants are subjective.

• To distinguish between needs and wants, consider whether the item is necessary for survival or simply desired for comfort or pleasure.

• Needs are temporary, wants are permanent.

Which of the following is a saving strategy: a) Saving a portion of your allowance b) Spending all your money c) Borrowing money from friends

• Investing all your money

• a) Saving a portion of your allowance

• Spending all your money

• Not saving any money

Why is it important to prioritize needs over wants when budgeting?

• Needs are less important than wants in budgeting

• Prioritizing wants can lead to overspending

• Budgeting based on wants ensures financial stability

• It is important to prioritize needs over wants when budgeting to ensure essential expenses are met before discretionary spending.

True or False: Emergency funds are essential for unexpected expenses.

• Maybe

• Not sure

• True

• False

What is the recommended percentage of income to save for the future?

• 20%

• 10%

• 15%

• 25%

Which of the following is an example of a financial goal: a) Buying a new phone b) Going on a vacation c) Saving for retirement

• Paying off credit card debt

• Saving for retirement

• Buying a new car

• Investing in stocks

What are some benefits of tracking your expenses?

• Tracking expenses is time-consuming and unnecessary

• Tracking expenses helps in budgeting, identifying spending patterns, avoiding overspending, setting financial goals, and preparing for emergencies.

• Tracking expenses does not help in identifying spending patterns

• Tracking expenses leads to financial instability

True or False: Investing in stocks is a safe way to save money.

• Sometimes

• Depends on the weather

• True

• False