Mastering Personal Finance Concepts

budget

• A list of all your debts

• A plan for how to spend and save your money

• A record of your past expenses only

• A summary of your credit score

If you receive a pay stub, what information can you find on it?

• Only your total income

• Your net pay and deductions

• Only your expenses

• Your credit card balance

Which of the following is considered an expense in a personal budget?

• Salary

• Utilities bill

• Deposit

• Interest earned

What is the main difference between a checking account and a savings account?

• Checking accounts earn more interest

• Savings accounts are used for daily transactions

• Checking accounts are mainly for spending, savings accounts for saving

• There is no difference

If you want to avoid paying interest on a credit card, what should you do?

• Pay only the minimum payment each month

• Pay the full balance each month

• Ignore the bill

• Transfer the balance to another card

Which of the following is an example of income?

• Rent payment

• Utility bill

• Paycheck from a job

• Grocery expense

In finaces the word principal refers to

• The total amount of interest paid

• The original amount borrowed

• The monthly payment

• The late fee

If you transfer money from your checking account to your savings account, what type of transaction is this?

• Deposit

• Withdrawal

• Transfer

• Expense

You want to reduce your debt faster. Which strategy would be most effective?

• Make only the minimum payments

• Pay more than the minimum payment each month

• Skip payments occasionally

• Take out more loans

If you are struggling to pay your bills and have multiple debts, what is a good first step to manage your debt effectively?

• Ignore the bills

• Make a list of all your debts and prioritize payments

• Take out more loans

• Stop making payments