Personal Finance and Budgeting Study Review

Use the information to answer the question. (Aks 59a)

Every two week, you get a paycheck from the bank

What do the paychecks represent?

• her taxes

• her credit

• her income

• her interest

Use the information to answer the question. (Aks 59a)

Gabby works at a clothing store. She gets paid hourly but also gets an extra percentage based on how many things she sells.

Based on this information, what vocabulary word does that extra percentage represent?

• Income

• Spending

• Credit

• Commission

Why do people make personal budgets?

• to help them determine how to earn more resources

• to help them determine how to earn different resources

• to help them determine the best way to use a limited resource

• to help them determine the best way to use an unlimited resource

Bethany wants to create a monthly budget. In order to do this, what will she need to know?

• the difference between bonds and stocks

• her monthly income and expenses

• her savings account’s interest rate

• the current inflation rate

Use the table to answer the question. (59c) Who is BEST prepared for a financial emergency? (Aks 59C)

• A. Ashleigh

• B. Dennis

• C. Patricia

• D. Roman

Saving money helps people by:

• allowing them to be prepared for emergencies.

• making them spend more than they earn.

• reducing their ability to buy things they need.

• encouraging them to avoid planning for the future.

Which of the following is the best choice to use a loan (credit) from the bank?

• a concert ticket

• a restaurant bill

• a parking fee

• a new car

Why is it a good idea to pay cash for purchases?

• Paying with cash creates more jobs.

• Paying with credit can be more expensive than paying with cash due to interest

• Paying with cash allows you to get what you want instantly

• People who can pay with cash are more likely to be approved for loans.

What is the risk of using credit cards?

• earning less on investments

• falling into debt

• reduces your income earned

• increasing the amount of taxes owed

Jonathon has a weekly disposable income of $50.00. Which option carries the HIGHEST risk of Jonathon losing his money?

• investing in stocks with his disposable income

• storing his disposable income at home in a safe

• depositing his disposable income in a savings account

• purchasing a video game he desires with his disposable income