Why is it important to save money?

Savings help people prepare for unexpected emergencies. Savings help people avoid accumulating unnecessary debt.

Which answer choice best describes saving? setting aside money for future use OR planning how to spend one's income

setting aside money for future use

Lena has a $200 balance on her credit card. She chooses to make only the minimum payment of $10 each month. What is one advantage and one disadvantage of making only minimum payments? A) Advantage: She pays off the balance quickly; Disadvantage: She avoids interest B) Advantage: She earns rewards; Disadvantage: She loses her credit card C) Advantage: She keeps more money each month; Disadvantage: She pays more in interest over time D) Advantage: She avoids having to live with a budget; Disadvantage: She pays less than she owes

C) Advantage: She keeps more money each month; Disadvantage: She pays more in interest over time

Jordan earns $100 a month from chores. He wants to buy a phone that costs $250. He considers using credit to buy it now, but he also knows he’ll have to pay interest. What is the best financial decision for Jordan? A) Use credit and worry about payments later B) Buy the phone now and don't worry about the interest C) Borrow money from friends and never pay it back D) Save money for three months and don’t use credit

D) Save money for three months and don’t use credit

Alex used a credit card that let him buy a $200 bike now and pay later. What is the effect of using a credit card to buy the bike? A) He is getting a better deal on the bike if he uses credit B) He is only paying $200, but he has more time to pay C) He is paying more than $200 because of interest D) He doesn’t have to worry about paying anything

C) He is paying more than $200 because of interest

Why is it a good idea to pay cash for purchases whenever possible? A. Paying with cash creates more jobs than paying with credit. B. Paying with credit can be more expensive than paying with cash. C. People can get the things they want more quickly by paying with cash.

B. Paying with credit can be more expensive than paying with cash.

Jennifer and Damon earn the same amount of income each month and have similar expenses. Jennifer saves most of the money that she does not use for necessary expenses, while Damon spends his money on concert tickets and going to restaurants. What conclusion can be drawn based on this information?

Jennifer is more likely to be prepared financially for emergencies.

Which person likely earns the most income each month? A. a person with a low-skill, full-time job B. a person with a high-skill, full-time job C. a person with a low-skill, part-time job D. a person with a high-skill, part-time job

B. a person with a high-skill, full-time job

What are two factors that determine the amount of income a person receives from work? A. how many hours the person works each week B. how much money the person saves each month C. how complex the job that the person performs is D. how many bills the person must pay each month E. how much the person is expected to pay in taxes F. how enjoyable the job that the person performs is

A. how many hours the person works each week C. how complex the job that the person performs is

To help him start a business, Cameron took out a $10,000 loan from a bank. The loan has an annual interest rate of 5%. What expectation should Cameron have? A. to repay the bank the full amount, minus interest B. to repay the bank the full amount, plus interest C. to have the loan forgiven if his business fails D. to have the interest waived if his business fails

B. to repay the bank the full amount, plus interest

Personal Finance Flash Cards

Flashcard

•

Social Studies

•

7th Grade

•

Practice Problem

•

Easy

Angelica Hayward

Used 4+ times

FREE Resource

Student preview

25 questions

Show all answers

FLASHCARD QUESTION

Front

What type of income best describes Jacob, who works 25 hours per week at a smoothie store and makes $9.50 per hour?

Back

Wage

FLASHCARD QUESTION

Front

What is required for a household to provide basic needs, such as housing, transportation, groceries, etc.?

Back

Income

FLASHCARD QUESTION

Front

______ a type of income in which a person earns a certain percentage of what he or she sells.

Back

Commission

FLASHCARD QUESTION

Front

_____ basic needs that a household must pay for

Back

expenses

FLASHCARD QUESTION

Front

Setting money aside to use in the future

Back

saving

FLASHCARD QUESTION

Front

a plan on how to spend and save money

Back

budget

FLASHCARD QUESTION

Front

an hourly rate paid in exchange for labor (work)

Back

wage

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