Instructions
Complete the following questions to improve your finance literacy. Write your answers in the spaces provided.
Multiple Choice Questions
1. Which of the following is considered a liquid asset?
2. The 50/30/20 rule suggests that:
Fill in the Blank
3. A credit score of ______ or above is generally considered good.
4. The process of paying off debt by focusing on the account with the highest interest rate is called:
Short Answer Questions
5. What are three common types of savings accounts?
6. Name two strategies for building an emergency fund:
Long Answer Questions
7. Explain the difference between a Roth IRA and a Traditional IRA:
8. What are some factors that can affect your loan interest rates?
Practical Application
9. Create a simple budget plan for a month. List your income, fixed expenses, and savings goals:
10. If you want to save $10,000 in five years, how much should you save each month? Show your calculation: