Personal Financial Literacy

Why is it important that people “pay themselves” first before paying any bills?

• There is no benefit to paying yourself first

• You work hard, so you deserve to pay yourself first

• If you wait to buy nice things for yourself until all your budget items are taken care of, you won’t be able to “treat yoself” as much as you want

• If you wait to save money until all your budget items are taken care of, you won’t have as much savings as you could/should

How can you manage your credit responsibly?

• Only apply for loans when you know you can pay them back

• Limit the amount of credit you take out

• Limit your credit purchases to what you can pay off at the end of the month

• All of the Above

What three things should be included in every budget?

• Fixed Expenses, Savings, Credit Card payments

• Fixed Expenses, Savings, Credit Card payments

• Fixed Expenses, Variables Expenses, Savings

• Variable Expenses, Savings, Credit Card payments

What ways can you spend money you placed in your checking account?

• Debit Card

• Writing a Check

• Visiting an ATM or bank teller to withdraw money

• All of the above

What type of savings account will earn you the most money in the long run?

• One that offers compound interest

• One that offers a principal

• One that offers simple interest

• One that offers accrued interest

Mitch and Erica have a budget, but they have decided to start saving for a trip to Greece. They plan on putting $500 aside every month until they can afford it. What payment can lower from their variable expenses to reach this goal?

• Social Security

• Mortgage

• Clothing

• Student Loan

What is the primary purpose of creating a personal budget?

• To track spending habits

• To ensure all bills are paid on time

• To save money for future goals

• All of the above

Which of the following is a benefit of having an emergency fund?

• It allows you to invest in stocks

• It provides financial security during unexpected events

• It helps you pay off credit card debt faster

• It increases your credit score

What is a common strategy for reducing debt?

• Paying the minimum balance on all debts

• Focusing on paying off the smallest debt first

• Ignoring interest rates

• Taking out more loans to pay off existing debt

Why is it important to understand interest rates when taking out a loan?

• Interest rates determine the total cost of the loan

• Interest rates have no impact on loan repayment

• Interest rates are only important for credit cards

• Interest rates are set by the borrower