BYU FINANCIAL LITERACY FINAL TEST ACTUAL 2025-2026 QUESTIONS AND 100%
CORRECT ANSWERS.
Domain 1: Needs, Wants, and Financial Mindset (Q1–15)
1. What is the definition of a "want"?
A) Something you would like to have but have to purchase on credit
B) Something you would like to have and something you must have
C) Something you would like to have but can survive without
D) Something you would like to have as long as it doesn't cost too much
Answer: C
Rationale: A "want" is something you desire but can survive without. Wants are
distinguished from needs (essentials for survival) in financial planning to help
prioritize spending .
2. What is something that you must have in order to survive?
,A) A goal
B) A want
C) A budget
D) A need
Answer: D
Rationale: A "need" is something essential for survival, such as food, shelter,
clothing, and healthcare. Financial planning prioritizes needs before wants .
3. What is the best purpose for keeping track of your money?
A) To impress your friends
B) To make sure you do not spend more than you earn
C) To qualify for a mortgage
D) To avoid paying taxes
Answer: B
,Rationale: Tracking your money helps you live within your means, avoid debt, and
achieve financial goals. The fundamental purpose is ensuring expenses do not
exceed income .
4. What is not the best way to solve your financial problems?
A) Creating a budget
B) Accumulating debt
C) Increasing income
D) Reducing expenses
Answer: B
Rationale: Accumulating debt typically worsens financial problems due to interest
payments and fees. Sound solutions include budgeting, increasing income, and
reducing expenses .
5. When is the best time to start learning about money management?
A) When you get your first full-time job
B) When you graduate from college
C) When you are young
, D) When you get married
Answer: C
Rationale: Learning money management early allows principles to be
implemented effectively throughout life. Starting young builds good financial
habits before significant earnings begin .
6. Which option reflects who should be responsible for your finances?
A) Your bank or credit union
B) You
C) The American welfare system
D) The Federal Reserve
Answer: B
Rationale: Personal financial responsibility ultimately rests with the individual.
While others may provide advice, you are responsible for your own financial
decisions and outcomes .
CORRECT ANSWERS.
Domain 1: Needs, Wants, and Financial Mindset (Q1–15)
1. What is the definition of a "want"?
A) Something you would like to have but have to purchase on credit
B) Something you would like to have and something you must have
C) Something you would like to have but can survive without
D) Something you would like to have as long as it doesn't cost too much
Answer: C
Rationale: A "want" is something you desire but can survive without. Wants are
distinguished from needs (essentials for survival) in financial planning to help
prioritize spending .
2. What is something that you must have in order to survive?
,A) A goal
B) A want
C) A budget
D) A need
Answer: D
Rationale: A "need" is something essential for survival, such as food, shelter,
clothing, and healthcare. Financial planning prioritizes needs before wants .
3. What is the best purpose for keeping track of your money?
A) To impress your friends
B) To make sure you do not spend more than you earn
C) To qualify for a mortgage
D) To avoid paying taxes
Answer: B
,Rationale: Tracking your money helps you live within your means, avoid debt, and
achieve financial goals. The fundamental purpose is ensuring expenses do not
exceed income .
4. What is not the best way to solve your financial problems?
A) Creating a budget
B) Accumulating debt
C) Increasing income
D) Reducing expenses
Answer: B
Rationale: Accumulating debt typically worsens financial problems due to interest
payments and fees. Sound solutions include budgeting, increasing income, and
reducing expenses .
5. When is the best time to start learning about money management?
A) When you get your first full-time job
B) When you graduate from college
C) When you are young
, D) When you get married
Answer: C
Rationale: Learning money management early allows principles to be
implemented effectively throughout life. Starting young builds good financial
habits before significant earnings begin .
6. Which option reflects who should be responsible for your finances?
A) Your bank or credit union
B) You
C) The American welfare system
D) The Federal Reserve
Answer: B
Rationale: Personal financial responsibility ultimately rests with the individual.
While others may provide advice, you are responsible for your own financial
decisions and outcomes .
