Personal Financial Planning Basics
This worksheet covers fundamental concepts of personal financial planning for 11th-grade students, including budgeting, saving, investing, and debt management.
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Personal Financial Planning Basics
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Read each question carefully and provide your best answer based on your knowledge of personal financial planning.
1. Which of the following is considered a 'fixed' expense?
Groceries
Rent
Entertainment
Utilities
2. What is the primary purpose of an emergency fund?
To invest in the stock market
To pay for daily expenses
To cover unexpected financial setbacks
To save for a down payment on a house
3. A budget is a plan for how you will and your money.
4. The concept of 'paying yourself first' means prioritizing before other expenses.
5. Diversification in investing helps to reduce .
6. A high credit score can make it easier to get approved for loans and credit cards.
True
False
7. All investments guarantee a positive return.
True
False
8. Briefly explain the difference between a checking account and a savings account.
9. Describe one strategy for managing debt effectively.
Use the words below to complete the sentences.
10. The original amount of money borrowed or invested is called the .
11. The process of earning returns on previously earned returns is known as .
12. The general increase in prices and fall in the purchasing value of money is called .