Understanding Personal Finance Concepts

Front

Which formula correctly calculates the net price of college for a student?

Back

Sticker Price - Total Grants and Scholarships

Front

The 'sticker price' of a college is most closely synonymous with which term?

Back

The official, published Cost of Attendance (COA) before any financial aid is deducted.

Front

Discretionary income is best defined as the money remaining after a person has paid for:

Back

All necessary expenses, such as housing, food, and utilities.

Front

Which of the following expenses would typically be paid for using discretionary income?

Back

A subscription to a streaming service

Front

Gross pay refers to the amount of money an employee earns.

Back

Before any deductions, such as taxes or insurance premiums, are taken out.

Front

If an employee works 40 hours at a rate of $15 per hour, their gross pay for the week would be:

Back

The entire amount of $600.00

Front

Net pay is often referred to as an employee's 'take-home pay' because it represents the money:

Back

Remaining after all mandatory and voluntary deductions are subtracted from gross pay.

Front

Which deduction is always subtracted from gross pay to arrive at a different number that is closer to the net pay?

Back

Federal and state income taxes

Front

What does a 401(k) plan allow employees to do?

Back

Contribute pre-tax or post-tax dollars, depending on the plan structure.

Front

What is the primary financial advantage of an employer's matching contribution to a 401(k) plan?

Back

Free money that immediately increases your savings.