Personal Finance - Final Part 2

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Which of the following is an effective strategy for personal saving? Options: Wait until the end of the month and save whatever is left in your checking account, Save a certain percentage of each paycheck and deposit it directly into a savings account, Cover all of your wants and needs and save whatever is left over, Take out a payday loan so you can save before you receive your paycheck

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Save a certain percentage of each paycheck and deposit it directly into a savings account

Front

All of the following statements about bank accounts are true, EXCEPT…
Options: If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails, Many banks pay interest on the money you deposit into your savings account, Historically, savings accounts earn higher returns than investments in the stock market, Money in a checking account is usually easy to access via ATM, debit card or check

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Historically, savings accounts earn higher returns than investments in the stock market

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You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for…

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A new cell phone, college tuition, a house down payment

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Which statement best describes a savings account? Options: This account offers a convenient way to pay bills and access cash from an ATM, This account pays you interest on money you have put away for later to help your money grow, This account is automatically debited when you use a debit card, This account typically allows an unlimited number of transactions per month

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This account pays you interest on money you have put away for later to help your money grow

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When do you start paying income taxes? Options: When you turn 18, When you get a full-time job (part-time does not count), When you make more than the minimum income requirement, When you are notified by the IRS that you are required to pay federal income taxes

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When you make more than the minimum income requirement

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Why is it important to be extremely careful when completing your 1040 form?

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The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government.

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If your only income is salary paid by your employer, which of these statements about filing your taxes is true? Options: You need to file your tax return by the end of the calendar year (typically December 31st), If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return, You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date, You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money

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You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date.

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Which form will determine how much money is withheld from your paycheck for taxes? Options: W-4, W-2, I-9, 1040

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W-4

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When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT… How much income did you earn this year?, What type of income did you earn this year?, What state do you live in?, Are you claimed as a dependent on anyone else's tax return?

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What state do you live in?

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Elaine just accepted a new job and is working with the company’s HR department to fill out paperwork. Which of the following steps is she responsible for? Options: Determine how much tax to withhold from her paychecks based on W-4 information, Complete a W-4 form, Send withholding amounts to the federal government, Complete a W-2 form

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Complete a W-4 form