Grade 12 Money Management Worksheet
This worksheet covers key concepts in money management for 12th-grade students, including budgeting, saving, investing, and understanding credit.
Includes
Topics
Money Management for Grade 12
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Date:
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Read each question carefully and answer to the best of your ability. Show all your work for calculations.
1. Which of the following is generally considered the most liquid asset?
Real estate
Savings account
Stocks
Retirement fund
2. What is the primary purpose of a diversified investment portfolio?
To maximize returns by focusing on a single high-growth asset
To reduce risk by spreading investments across various asset types
To guarantee a fixed rate of return on all investments
To avoid paying taxes on investment gains
3. A personal is a detailed plan for how you will spend and save your money.
4. The concept of interest means earning interest on both the initial principal and the accumulated interest from previous periods.
5. A high credit score can make it easier to get approved for loans and credit cards at favorable interest rates.
True
False
6. Emergency funds should typically cover at least 1-2 months of living expenses.
True
False
7. Explain the difference between a Roth IRA and a Traditional IRA.
8. Describe three common strategies for managing debt effectively.
Use the words below to complete the sentences.
9. The cost of goods and services rising over time is known as .
10. The original amount of money borrowed or invested is called the .
Match each term on the left with its definition on the right.
11. FICO Score
a. The process of setting financial goals and creating a plan to achieve them.
12. Financial Planning
b. A three-digit number representing an individual's creditworthiness.
13. Compounding
c. Earning returns on previously earned returns.
14. Sarah earns $2,500 per month after taxes. Her monthly expenses are: Rent $1,000, Groceries $300, Transportation $150, Utilities $100, and Entertainment $200. She wants to save $500 per month for a down payment on a car. Create a simple budget for Sarah and determine if she can meet her savings goal. If not, suggest how she could adjust her spending.