Personal Finance Final Review

Front

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?

Back

2 years

Front

Which of these boxes of cereal has the LOWEST unit price? Options: Cereal A, which costs $3.20 for a 16 oz. box, Cereal B, which costs $5.00 for a 32 oz. box, Cereal C, which costs $2.50 for a 10 oz. box, Cereal D, which costs $4.50 for an 8 oz box

Back

Cereal B, which costs $5.00 for a 32 oz. box

Front

You are interested in renting an apartment after graduating college. You meet with the landlord and complete the application. All of the following may need to be provided when you sign your lease EXCEPT: Proof of employment, A bank account, First and last month's rent, A security deposit

Back

A bank account

Front

Which of your expenses would likely NOT decrease by having roommates when moving into a 3 bedroom apartment with 2 roommates? Options: Groceries and eating out, Rent, Cell phone bill, Furniture

Back

Cell phone bill

Front

You overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT: A budget can help you identify any bad spending habits, Using a budget can allow you to work towards your financial goals, Having a budget can help you create an emergency fund, Having a budget is a requirement for obtaining a mortgage

Back

Having a budget is a requirement for obtaining a mortgage

Front

Which one of these expenses most likely represents a VARIABLE cost in someone's budget? Options: Electricity bill, Rent, Car insurance premium, Student loan payment

Back

Electricity bill

Front

Which statement accurately describes how the 50/20/30 Rule would break down your take-home pay?

Back

50% needs, 20% on saving, and 30% on wants

Front

What does Aunt Tina mean by "living paycheck to paycheck"?

Back

Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses.

Front

Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do.

Back

Contact her bank immediately as it appears that her account may have been hacked

Front

FDIC Insurance is...

Back

Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business