Personal Finance Quiz

Question 1

Net Income

Answer 1

Regular spending + Irregular Spending (Short term spending) + Future Spending (Long term spending)

Question 2

Interest Rate

Answer 2

How much you can earn from savings in your bank

Question 3

Savings rate

Answer 3

How much of your income you are saving

Question 4

What affects our growth of savings?

Answer 4

Interest rate and time

Question 5

Living Paycheck to Paycheck

Answer 5

Struggling financially because you are relying on another paycheck to come in before you can spend your money from that money

Question 6

Adjusted income

Answer 6

What you factor in for cost of living

Question 7

Unadjusted income

Answer 7

Median income for all jobs across state

Question 8

Zero based budget

Answer 8

You distribute your money to everything you need and want (Short and long term spending)

Question 9

50/30/20

Answer 9

Dividing your income into 3 categories: 50% needs, 30% wants, 20% savings

Question 10

Cash envelope system

Answer 10

Same as zero based budgeting, but putting cash into envelopes

Question 11

Pay yourself first

Answer 11

Setting aside money for savings before paying bills and other purchases