Introductory Quiz

1. What is the first step in creating a budget?

• A) Set savings goals
• B) Track your expenses
• C) Buy a budgeting app
• D) Cut unnecessary expenses

2. True or False: You should always use your credit card to pay for emergencies.

• True
• False

3. What does APR stand for?

• A) Annual Payment Rate
• B) Average Payment Rate
• C) Annual Percentage Rate
• D) Account Payment Rate

4. Which of the following is an example of a fixed expense?

• A) Utility bills
• B) Grocery shopping
• C) Rent
• D) Entertainment

5. True or False: Diversifying your investments means putting all your money into one stock to maximize returns.

• True
• False

6. What is a good rule of thumb for saving for retirement?

• A) Save at least 10-15% of your income
• B) Save 50% of your income
• C) Only save when you get a raise
• D) Save only when you’re in debt

7. What is a credit score used for?

• A) To track your income
• B) To determine how much money you have in the bank
• C) To determine your loan eligibility and interest rates
• D) To help you save money

8. True or False: It’s always better to pay off your credit card balance in full each month.

• True
• False

9. Which of the following is an example of a short-term savings goal?

• A) Saving for a vacation
• B) Saving for retirement
• C) Saving for a house
• D) Saving for college

10. What does it mean to "live within your means"?

• A) Spend more than you earn
• B) Only save and never spend
• C) Spend less than or equal to what you earn
• D) Spend money on things you want, regardless of income