Financial Literacy Quiz

What is Gross Income and Net Income?

• Gross income is the total earnings before deductions; net income is the earnings after deductions.

• Gross income is the earnings after deductions; net income is the total earnings before deductions.

• Gross income is the earnings after taxes; net income is the earnings before taxes.

• Gross income is the total earnings after deductions; net income is the earnings before deductions.

Name two differences between Gross and net income.

• Gross income includes taxes; net income does not.

• Gross income is before deductions; net income is after deductions.

• Gross income is after deductions; net income is before deductions.

• Gross income is the same as net income.

Give an example of occasional and variable expenses.

• Rent and groceries

• Insurance and utilities

• Vacation and dining out

• Salary and taxes

Name 3 vital expenses.

• Entertainment, dining out, and travel

• Rent, utilities, and groceries

• Clothing, gifts, and subscriptions

• Hobbies, gym membership, and electronics

Name 3 non vital expenses.

• Rent, utilities, and groceries

• Insurance, taxes, and savings

• Dining out, entertainment, and travel

• Education, healthcare, and transportation

Why is your credit score important?

• It determines your salary.

• It affects your ability to get loans.

• It shows your monthly expenses.

• It calculates your tax returns.

What is interest?

• The principal amount of a loan

• The fee paid for borrowing money

• The total amount of a loan

• The savings in a bank account

Name a tip on having a credit card.

• Always pay the minimum balance.

• Use it for every purchase.

• Pay the full balance each month.

• Ignore the interest rate.

Name 2 ways to reduce money flowing out.

• Increase spending and take more loans

• Create a budget and cut unnecessary expenses

• Ignore bills and avoid savings

• Spend more on entertainment and dining

What do money issues cause?

• Financial stability

• Stress and anxiety

• Increased savings

• More investment opportunities