JA Personal Finance Pre Test

JA Personal Finance - What Do You Know - PRE

* Indicates required field

School *

Class *

Date *

1. What are the first three letters of your name in your NRIC? (ie: ‘CHA’ for ‘CHAN’) *

2. When were you born? *

3. What level are you in? (ie: Sec 2, JC1, Poly 2)? *

1. Of the following steps, which would be the first step in financial planning? *

a. Get a job so you can start earning money. b. Determine your needs and goals for the future. c. Starting looking for a home to buy. d. Save a portion of your money for the future.

2. True or false: The best predictor of how much money you will make in the future is the education you choose. *

True False

3. Which of the following should you remember when developing a savings plan? *

a. Wait until you are 40 years old before saving. b. Pay yourself first. c. Pay off your low-interest debt first. d. Have only high risk investments.

4. All of the following are elements of financial planning except one. Which one? *

a. Earn money b. Save money c. Never use credit d. Spend money wisely

5. Alan has created a new budget. Which of the following should he NOT do? *

a. Have a spending plan. b. Spend less than he earns. c. Use credit for all items not in his budget. d. Stick to his budget.

6. Match each term to the correct definition

Income

Expense

Fixed Expense

Variable Expense

Opportunity Cost

a. Money spent to buy or do something *

b. Expense that vary from month to month *

c. The next best alternative given up when a choice is made *

d. Expenses that do not change from month to month *

Any money earned or received *

7. Which of the following statements about credit is false? *

a. A credit score is something that can be used to determine if you get a loan. b. Always read the fine print in a contract when you buy something on credit. c. Credit is something that is bad and should always be avoided. d. Most people will need credit at some point in their lives.

8. Which of the following statements is NOT good advice for risk management? *

a. Shred any mail that contains personal information. b. Purchase insurance to lower your risk of out-of-pocket expenses. c. Don’t let anyone pressure you to buy something. d. Store your list of passwords in your phone.

Indicate the extent to which you engage in the following behaviors.
A score of “1” means you never engage in the behavior and a score of “5” means you always engage in
the behavior.

Rate your level of agreement with each of the statements below.