Financial Literacy Pre-Quiz worksheet with six questions on money management, borrowing, income, investing, financial services, and insurance.

This “Financial Literacy Pre-Quiz” is designed to assess your current understanding and perceptions of basic financial concepts. Since it’s a *pre*-quiz, there are no “right or wrong” answers — the goal is to reflect on what you already know or think about money, borrowing, earning, investing, and insurance.

Here’s a thoughtful, comprehensive response to each question that you can use as a model or guide:

—

1. What comes to mind when you hear the words, money management?

When I hear “money management,” I think of planning how to earn, spend, save, and invest money wisely. It includes making a budget, tracking expenses, avoiding unnecessary debt, setting financial goals (like saving for a car or emergency fund), and living within my means. Good money management helps reduce stress, build security, and achieve long-term dreams like buying a home or retiring comfortably.

—

2. List any ways, people, or places you know that you can borrow money.

I can borrow money from:
- Banks (personal loans, credit cards)
- Credit unions
- Online lenders (like LendingClub or SoFi)
- Family or friends (informal loans)
- Payday lenders (though often high-interest and risky)
- Government programs (like student loans or small business loans)
- Peer-to-peer lending platforms

—

3. List some different ways that you can earn money or have an income.

Ways to earn money include:
- Having a full-time or part-time job (salary or hourly wage)
- Freelancing or gig work (Uber, Fiverr, Upwork)
- Starting a small business (selling crafts, tutoring, etc.)
- Investing (dividends, interest, rental income)
- Receiving government benefits or stipends
- Winning contests or prizes
- Renting out property or assets (like a room on Airbnb or a car on Turo)

—

4. What do you think of when you hear the word "Investing?" List anything you think goes along with investing.

When I hear “investing,” I think of putting money into something with the hope of growing it over time. This could mean:
- Buying stocks (ownership in companies)
- Purchasing bonds (lending money to governments or corporations for interest)
- Investing in mutual funds or ETFs (pooled investments managed by professionals)
- Real estate (buying property to rent or sell later)
- Retirement accounts (like 401(k) or IRA)
- Risks and rewards — higher potential returns usually come with higher risk
- Long-term thinking — investing is usually not for quick cash
- Compound interest — earning interest on your interest over time

—

5. List any financial services you've heard of and explain what you think they do.

Financial services I’ve heard of include:
- Banks – Hold deposits, offer loans, provide checking/savings accounts, and help with everyday transactions.
- Credit Unions – Similar to banks but member-owned; often offer better rates and personalized service.
- Investment Firms (like Fidelity or Charles Schwab) – Help people buy and manage stocks, bonds, and other investments.
- Insurance Companies (like State Farm or Allstate) – Provide protection against financial loss due to accidents, illness, or damage.
- Payroll Services (like ADP) – Manage employee paychecks, taxes, and benefits for businesses.
- Financial Advisors/Planners – Give advice on budgeting, saving, investing, and retirement planning.
- Credit Card Companies (like Visa or Mastercard) – Offer lines of credit for purchases, often with rewards or cashback.

—

6. What can insurance be used for? Why do you think we have insurance on things?

Insurance can be used to protect against unexpected financial losses. Common types include:
- Health insurance (covers medical bills)
- Car insurance (covers accident damages or injuries)
- Homeowners/renters insurance (covers damage to property or belongings)
- Life insurance (provides money to loved ones after death)
- Disability insurance (replaces income if you can’t work due to injury or illness)

We have insurance because life is unpredictable. Accidents, illnesses, theft, or natural disasters can happen to anyone. Insurance spreads the risk across many people so that one person doesn’t have to bear the full cost alone. It gives peace of mind and financial stability during tough times.

—

✔ Final Note: This pre-quiz helps identify what you already understand and what areas might need more learning. After taking a financial literacy course or reading more, you can revisit these questions to see how your understanding has grown!

Let me know if you’d like a printable version or a simplified version for younger learners!