Financial Math Semester Exam (E)

Front

What is Personal Finance?

Back

Personal Finance refers to all the financial decisions that an individual or family must make about their money.

Front

True or False: Your income level greatly affects your saving habits.

Back

False

Front

Why are detailed categories in a budget important?

Back

They help you make better spending decisions.

Front

What is a consequence of spending more than you earn?

Back

A cycle of debt, stress, and missed opportunity to save and invest.

Front

What does creating a budget NOT do?

Back

Make overspending more likely.

Front

What is a budget?

Back

A budget is a plan that outlines expected income and expenses over a specific period.

Front

What is the purpose of saving money?

Back

To prepare for future expenses and emergencies.

Front

What is the difference between needs and wants?

Back

Needs are essential for survival (like food and shelter), while wants are non-essential items that enhance quality of life.

Front

What is an emergency fund?

Back

An emergency fund is savings set aside to cover unexpected expenses.

Front

What does it mean to live within your means?

Back

Living within your means means not spending more money than you earn.