Financial Literacy

How do you calculate lifetime earnings?

• Multiply your annual salary by the number of years you expect to work.

• Add your annual salary to your total savings.

• Divide your annual salary by the number of years you expect to work.

• Multiply your monthly salary by 12 and then by the number of years you expect to work.

What is a fixed expense?

• A cost that varies each month, such as groceries or utilities.

• A regular and consistent cost, such as rent or a car payment, that does not change each month.

• An expense that is only incurred once a year, like property taxes.

• A discretionary expense that can be adjusted based on personal choice.

What is a debit card?

• A payment card that allows you to spend money directly from your checking account.

• A card that allows you to borrow money from a bank.

• A card used exclusively for online shopping.

• A type of credit card that builds your credit score.

What is income?

• Income is the money you earn from work, investments, or other sources.

• Income is the total amount of money spent on living expenses.

• Income is the money received from government benefits.

• Income is the value of assets owned by an individual.

What is an expense?

• An expense is any money that you spend on goods or services.

• An expense is a type of income received from investments.

• An expense is a financial obligation that must be paid in the future.

• An expense is a budget surplus that can be saved.

What is savings?

• Savings is the money that you set aside for future use, often kept in a bank account.

• Savings is the amount of money you spend on daily expenses.

• Savings is the money you invest in stocks and bonds.

• Savings is the money you borrow from a bank.

What is an emergency fund?

• A type of savings account for vacations

• Money set aside to cover unexpected expenses or financial emergencies

• A fund used for investing in stocks

• A budget for monthly expenses

What is a financial literacy?

• The ability to understand and effectively use various financial skills, including personal finance management.

• A method of saving money for future investments.

• A type of investment strategy used by financial analysts.

• A government program that provides financial assistance to individuals.

What does it mean to invest?

• Using your money to buy assets that you expect will grow in value over time.

• Saving money in a bank account for future use.

• Spending money on immediate needs and wants.

• Borrowing money to purchase luxury items.

What does it mean to budget?

• Planning how to spend your money wisely to meet your needs and goals.

• Saving all your money without spending any.

• Investing in stocks and bonds only.

• Spending money as quickly as possible.