Consumer Skills & Personal Financial Planning

Consumer Skills & Personal Financial Planning

by Eva Eikel

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Multiple Choice

What is the difference between gross income and net income?

• Gross income is before tax deductions; net income is the amount you actually bring home

• Gross income is earned on your own; net income is earned from your full-time job

• Gross income is exempt from personal income taxes; net income is taxable income

• Gross income is already committed to future expenditures; net income is discretionary

Multiple Choice

How long you have had credit lines openWhich of the following is NOT a factor banks take into account when deciding to give you credit?

• How long you have had credit lines open

• Your education and gender

• Whether you have made late payments

• How much credit you use compared to how much you have available to use

Multiple Choice

Which of the following statements about credit is TRUE?

• Everyone receives access to credit; it is only taken away when used irresponsibly.

• Credit can be an important financial tool, but only if used responsibly.

• Credit is bad and is a large reason the economy continues to struggle.

• Credit is a good way to pay for all your bills, so you can spread the cost of things over a longer period and thus afford more things.

Multiple Choice

Why is it important to start saving money early in life?

• The earlier you start saving, the more your money will grow over time

• The earlier you start saving, the more money you will have to earn early in your life

• The earlier you start saving, the longer you will have to work

• The earlier you start saving, the easier it will be to save over time

Multiple Choice

_____ refers to planning your future income and expenses to ensure they balance.

• Cash flow

• Investing

• Budgeting

• Debt