Review

What are the two main categories of spending?

• Saving and Investing

• Income and Expenses

• Cash and Credit

• Needs and Wants

Which of the following is an example of a protection product?

• Savings account

• Health insurance

• Stocks

• Dividends

What is the difference between saving and investing?

• Saving is for short-term use; investing aims to grow wealth.

• Saving involves spending money, while investing means borrowing.

• Saving is risky, while investing is guaranteed.

• Saving always loses value, investing always gains.

What is the correct formula to calculate net worth?

• Assets + Liabilities = Net Worth

• Income - Expenses = Net Worth

• Expenses - Income = Net Worth

• Assets - Liabilities = Net Worth

Which of the following is a sign of good financial health under the “Save” category?

• Borrowing from friends regularly

• Spending more than your income

• Having sufficient living expenses

• Delaying bill payments

Which of the following best describes a contingent liability?

• A loan that is due in one year
  

• A mortgage payment

• A monthly car loan

• A debt that depends on a future event

What is the correct savings formula based on the right way to save?

• Income – Expenses = Savings

• Income + Expenses = Savings

• Savings + Expenses = Income

• Income – Savings = Expenses

According to financial literacy, what is the first step to achieving financial independence?

• Invest

• Save

• Plan

• Spend

REFERS TO A SOURCE OF CASH INFLOW THAT AN INDIVIDUAL RECEIVES AND THE USES TO SUPPORT THEMSELVES AND THEIR FAMILY

• SPENDING

• EARNING INCOME

• SAVINGS

• BUDGETTING

•Any asset into which funds can be placed with expectation to generate positive income and to preserve or increase its value

• Investment

• SAVINGS

• SPENDING

• EARNING INCOME