Personal Finance for Kids: Learn Money Management Skills

Question 1

What is the first step in creating a budget?

Accepted Answer

List your income and expenses

Answer

Subtract expenses from income

Answer

Set financial goals

Question 2

Which of the following is a good way to save for a big purchase?

Accepted Answer

Setting up a savings account

Answer

Borrowing money from your parents

Answer

Using a credit card

Question 3

Which of the following is a good way to protect your personal financial information?

Accepted Answer

Using strong passwords and shredding old financial documents

Answer

Sharing your Social Security number with everyone

Answer

Clicking on links in emails from unknown senders

Question 4

What is the Federal Deposit Insurance Corporation (FDIC)?

Accepted Answer

An organization that insures bank deposits up to a certain amount

Answer

An organization that regulates banks

Answer

An organization that provides financial advice

Question 5

Which of the following is an example of a long-term financial goal?

Accepted Answer

Saving money for college

Answer

Buying a new toy

Answer

Going to the movies

Answer

Buying a new pair of shoes

Question 6

What is the most important thing to remember about personal finance?

Accepted Answer

It is important to manage your money wisely.

Answer

Money is everything.

Answer

You can never have too much money.

Answer

Money can make you happy.

Question 7

Which of these is a good financial habit?

Accepted Answer

Paying your bills on time

Answer

Borrowing money from friends or family without a plan to repay

Answer

Spending more money than you earn

Answer

Not putting money aside for future needs

Question 8

What is the difference between a need and a want?

Accepted Answer

Needs are essential for survival or well-being, while wants are not.

Answer

Wants are cheaper than needs.

Answer

Needs are temporary, while wants are permanent.

Answer

There is no difference between needs and wants.

Question 9

What is the primary purpose of a bank?

Accepted Answer

To store money safely

Answer

To print money

Answer

To make loans

Answer

To keep your money from being stolen

Question 10

What is inflation?

Accepted Answer

When prices go up over time

Answer

When prices go down over time

Answer

When the value of money increases

Answer

When the value of money decreases

Question 11

What's a smart way to handle your money?

Accepted Answer

Create a budget and stick to it

Answer

Spend it all right away

Question 12

What is a helpful habit for saving money?

Accepted Answer

Putting a small amount aside regularly

Answer

Spending all of it right away

Answer

Borrowing money from friends

Answer

Buying things you don't need

Question 13

What is a budget?

Accepted Answer

A plan for managing your money

Answer

A list of all your belongings

Answer

A record of past purchases

Answer

A list of dreams about what you want to buy

Question 14

Why should you invest your money?

Accepted Answer

To help your money grow

Answer

To make more money

Answer

To show off to your friends

Answer

To avoid paying taxes

Question 15

Which is NOT a type of financial goal?

Accepted Answer

Eating a yummy snack

Answer

Buying a house

Answer

Going to college

Answer

Buying a new car

Question 16

What is the difference between a debit card and a credit card?

Accepted Answer

Debit cards take money directly from your bank account, while credit cards let you borrow money.

Answer

Debit cards are only for adults, while anyone can use credit cards.

Answer

Credit cards are always better than debit cards.

Answer

There is no difference between debit and credit cards.

Question 17

What is a checking account?

Accepted Answer

An account where you can deposit and withdraw money

Answer

An account where you can only deposit money

Answer

An account where you can only withdraw money

Answer

An account where you can invest money

Question 18

What is the best way to avoid getting into debt?

Accepted Answer

Spend less than you earn

Answer

Borrow money from your parents

Answer

Use credit cards for everything

Answer

Invest all of your money

Question 19

What is the Federal Reserve?

Accepted Answer

The central bank of the United States

Answer

A government agency that regulates banks

Answer

A private company that provides financial services

Answer

A non-profit organization that helps people save money

Question 20

What is a budget?

Accepted Answer

A plan for how you will manage your money

Answer

A list of all your expenses

Answer

A method for saving money

Answer

A way to invest money

Question 21

Which of the following is a risk of investing?

Accepted Answer

You could lose money

Answer

You could make a lot of money quickly

Answer

You could get rich fast

Answer

You could become famous

Question 22

Which of these is NOT a benefit of saving money?

Accepted Answer

It can help you make new friends

Answer

It can help you reach your financial goals

Answer

It can help you avoid debt

Answer

It can help you buy a house

Question 23

Which of these is NOT a good way to save money?

Accepted Answer

Spending it all on toys

Answer

Putting it in a piggy bank

Answer

Putting it in a savings account at a bank

Answer

Investing it in the stock market

Question 24

What's a budget?

Accepted Answer

A list that shows how you spend your money

Answer

A way to make more money

Answer

A plan for how you will save your money

Answer

A type of bank account

Question 25

What's the main difference between a need and a want?

Accepted Answer

Needs are things you must have to live, while wants are things you would like to have

Answer

Needs are more important than wants

Answer

Wants are more expensive than needs

Answer

There is no difference between needs and wants

Question 26

What's the main reason to invest?

Accepted Answer

To grow your money over time

Answer

To keep your money safe from inflation

Answer

To make quick profits

Answer

To avoid paying taxes

Question 27

What's a credit card?

Accepted Answer

A type of loan that you can use to buy things

Answer

A type of bank account that you can use to save money

Answer

A type of investment that you can use to grow your money

Answer

A type of insurance that you can use to protect your money

Question 28

What's the most important thing to remember when managing your money?

Accepted Answer

Spend less than you earn

Answer

Invest your money wisely

Answer

Save for the future

Answer

Avoid debt

Question 29

Which of these is NOT a way of making money?

Accepted Answer

Getting free gifts

Answer

Working a job

Answer

Selling things you don't need

Answer

Winning a contest

Question 30

Why do people make a budget?

Accepted Answer

To keep track of what they spend and earn

Answer

To save money for later

Answer

To decide how to invest money

Answer

To borrow money from the bank

Question 31

Which of these is a good way to save money?

Accepted Answer

Putting some of your allowance aside every week

Answer

Spending all your money as soon as you get it

Answer

Borrowing money from a friend

Answer

Asking your parents for extra money

Question 32

What is the difference between a need and a want?

Accepted Answer

Needs are things you must have, while wants are things you would like to have.

Answer

Wants are things you must have, while needs are things you would like to have.

Answer

Needs and wants are the same thing.

Answer

Needs and wants cannot be compared.

Question 33

What is a smart financial decision?

Accepted Answer

Saving money for something you want in the future

Answer

Spending all your money on fun stuff

Answer

Buying everything you want right now

Answer

Putting your money in a risky investment

Question 34

Which of these is NOT a type of investment?

Accepted Answer

Spending money on toys

Answer

Buying a piggy bank

Answer

Putting money in a savings account

Answer

Investing in the stock market

Question 35

What is the best way to compare the cost of different products?

Accepted Answer

Look at the price per item

Answer

Ask your friends

Answer

Guess

Answer

Ask the store manager

Question 36

Which of these is a good shopping strategy?

Accepted Answer

Making a list of what you need and sticking to it

Answer

Buying everything you see on TV

Answer

Spending more money than you planned

Answer

Buying the most expensive things

Question 37

You want to use a credit card to earn rewards, but you're worried about getting into debt. What's the best way to use a credit card safely?

Accepted Answer

Pay off the entire balance every month.

Answer

Only use it for big purchases.

Answer

Never use a credit card.

Answer

Borrow money from friends to pay off the card.

Question 38

Which of these is NOT a wise way to save money?

Accepted Answer

Spending it on non-essential things

Answer

Putting it in a designated savings account

Answer

Keeping it safe in a piggy bank

Answer

Investing it for future growth

Question 39

What is the difference between a 'need' and a 'want'?

Accepted Answer

A 'need' is something you must have to survive, like food, water, and shelter. A 'want' is something you would like to have but can live without, like a new toy or a fancy gadget.

Answer

Needs are always more important than wants.

Question 40

What is a smart way to create a budget for your money?

Accepted Answer

Write down all the money you earn and spend, and keep track of where it goes.

Answer

Just spend whatever you want without thinking about it.

Answer

Borrow money from your friends or family to cover your expenses.

Question 41

What is the main purpose of a bank?

Accepted Answer

To keep your money safe and make it easy for you to access it when you need it.

Answer

To give you loans when you don't have enough money.

Answer

To make you rich by investing your money.

Question 42

What is the difference between a credit card and a debit card?

Accepted Answer

A credit card lets you borrow money from a bank to make purchases, while a debit card takes money directly from your bank account.

Answer

Credit cards are always better than debit cards.

Question 43

What is the best way to invest your money wisely?

Accepted Answer

Research different investment options and choose one that matches your goals and risk tolerance.

Answer

Borrow money to invest more than you have.

Answer

Put all your money into one stock or investment.

Question 44

Why is it important to save money?

Accepted Answer

It helps you reach your goals, prepare for unexpected expenses, and build financial security.

Answer

You don't need to save money if you have a job.

Answer

Saving money is only for adults, not kids.

Question 45

What is a good way to teach children about money?

Accepted Answer

Give them an allowance and help them track their spending and saving.

Answer

Don't talk to them about money or finances.

Answer

Make them do extra chores around the house to earn money.

Question 46

What is the Federal Reserve?

Accepted Answer

The central bank of the United States that manages the country's financial system.

Answer

A non-profit organization that provides financial advice

Answer

A government agency that regulates and supervises banks

Answer

A private company that prints money

Question 47

What is inflation?

Accepted Answer

A general increase in prices and decrease in purchasing power of money over time.

Answer

A sudden and sharp increase in prices

Answer

A decrease in prices and an increase in purchasing power of money