Personal Finance Unit 3

Zoe has been assigned by her school counselor to complete a career assessment. Which statement best describes why her counselor has suggested she do this?

• Her counselor wants Zoe to find a career that will provide a high level of income to support Zoe’s lifestyle and well-being.

• Her counselor wants Zoe to match her skills, abilities, interests and values with a list of specific occupations

• Her counselor wants Zoe to conduct interviews with people in her area of interest to determine if she truly enjoys the career she wants to prepare for.

• Her counselor wants Zoe to search for a career that will allow occupational flexibility and provide for possible career advancement as she gains more experience working in her selected career.

Which statement is true regarding college-level expectations for studying and completing projects?

• It is best to study alone in a quiet environment.

• Plan backward from major deadlines

• Multitasking during study time develops the important skill of working while being distracted, so it is okay to message with friends or watch TV while studying.

• The busier your schedule gets, the more important it is to write down only the most critical tasks to be done. Wasting time writing down smaller details is not recommended.

The money one would have earned if she/he had worked instead of continuing her/his education is called the:

• debt-to-income ratio

• opportunity cost

• benefit

• total estimated cost

Sarah learned in her Financial Education class that she needs to consider the cost of living when comparing job offers. Which is the most important consideration?

• How much she will spend in moving expenses to relocate to the city where her new job is

• The average cost of basic necessities, such as housing and food in the city where her new job is

• The total value of the benefits package she will be offered in her new job

• The total amount of her college costs compared to the salary she is being offered in her new job

The average cost of basic necessities, such as housing and food for a particular city is called the:

• standard of living

• lifestyle

• cost of living

• economy of living

Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be true?

• Federal income tax, state income tax, social security, and medicare deductions are all required deductions.

• Federal income tax, state income tax, workers compensations, and life insurance are all required deductions.

• Social security, Medicare, life insurance, and health insurance are all required deductions

• Social security, Medicare, federal income tax, and workers compensation are all required deductions.

Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob’s gross pay on his paycheck?

• $501.66

• $320.00

• $576.92

• $640.00

Gross income – deductions =

• Social Security

• Medicare

• net income

• employee benefits

As Jonah plans for his future, his family has challenged him to create a SMART goal for his career education and training. Which question is the least important one to consider at this point?

• What kind of training and education do I need and how much will it cost?

• Is there a career pathway available if I continue my education and training?

• Can I get the education and training I need near where I currently live?

• Will a job be available and will I earn enough in my career to pay for the education and training it requires?

Jaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan?

• He could be denied credit cards, car or home loans, or apartment leases.

• The bank could refuse to allow him to open a checking account.

• He may not be able to obtain a marriage license.

• His wages may be garnished.