PFL PF Post-Test Mod 8

Which statement is true?

• A savings plan and a budget don't really have anything to do with each other.

• It doesn't do much good to have a savings plan if you don't know how to budget your money.

Which statement is true?

• If you have a savings plan and have developed a budget, you won't have to worry about any other money issues

• Having a savings plan and a budget won't do much good if you don't know how to spend money wisely.

We say a "good" money burn means you have spent money wisely. A "bad" money burn means you have spent money you did not need to spend. Tell us which answer shows the best "good" money burn. (You don't have to agree with the choice, but only one choice shows the best money burn.)

• You buy designer jeans the day they are advertised.

• You buy designer jeans two weeks later, on sale.

• You buy jeans you like as well as designer jeans, but with no designer label. They cost half as much as the sale-priced designer jeans

• You shop around and buy a pair of the exact same designer jeans at a thrift shop, and they cost virtually nothing.

By not negotiating the price of your first car purchase, you have a $1,000 "bad" money burn. How long would it take you to earn back the thousand dollars you just threw away if you take home $10.00 per hour?

• 10 Hours

• 20 Hours

• 100 Hours

• 200 Hours

Which of the answers below show bad money burns?

You're definitely going to a show. You decide to go to the matinee movie rather than the more expensive night movie. You buy a new smart phone with lots of features, but never use your phone for anything but emergency phone calls home You draw money from an ATM near school, but it's not an ATM related to your bank and you are charged a fee. You bought your car insurance by closing your eyes and picking a company You try to skip the convenience store and buy things from a cheaper, bigger store. When you bought your first car, you fell in love with it, and bought it on the spot without researching the vehicle online or negotiating the price at the dealership

• Numbers 1, 5 and 6.

• Numbers 2, 3, 4 and 6

• Numbers 3, 4, 5 and 6.

• All of the above

You are getting ready to buy your first car. Select all the actions that show you are doing your homework properly.

1. You should check the vehicle's safety report online.
2. You should check out the manufacturer's website and believe everything it says about the vehicle.
3. You should talk to the salesperson at length and believe everything the salesperson says without checking other sources.
4. You should check the website of independent consumer groups.
5. You should believe all the claims about this vehicle that you see on television.
6. You research the insurance cost for a person your age buying this particular vehicle

• Numbers 1, 3 and 5.

• Numbers 1, 4 and 5.

• Numbers 1, 4 and 6.

• All of the above.

If you are from a family with poor money skills, chances are you will have poor money skills as well. Now's the time to take control of your spending habits!

• True

• False

Which is the best answer about the role of advertising in the free enterprise system?

• The purpose of advertising is to help consumers save money

• The purpose of advertising is to tell the consumer everything about a product or service.

• The purpose of advertising for most companies selling a product or service is to tell the potential buyer everything good and everything bad about their product or service

• For most companies, the purpose of advertising is to highlight the good things about the company's products or services. It is not the job of those companies to tell you the bad things about their products or services.

Assume your credit score is bad. Which of the following statements are true?

1. Your car insurance could cost more.
2. Your phone deposit could cost more.
3. Your apartment deposit could cost more
4. Your loan (virtually any type of loan) could cost more.
5. Paying cash for food could cost more
6. Your utilities deposit could cost more.
7. The gym where you pay cash every day could cost more.

• None of the above

• Numbers 2, 5 and 7.

• Numbers 1, 3, 4 and 6.

• Numbers 1, 2, 3, 4 and 6

Which of the following statements are true?

1. If you're a few days late on your credit card payment, it's okay. You just can't be very late.
2. The amount of interest you pay on virtually any loan will go up if you pay late.
3. You may have trouble getting the job you want if you consistently pay late and really hurt your credit.
4. As long as you pay your credit card bill early next month, it's okay to pay a little late this month.
5. You can ruin your credit in a heartbeat if you're young and start your credit life paying most things late - even if it's a small payment.
6. A credit card company may reduce the amount of money you can borrow if you pay late.
7. The cost of your car insurance can go up if you pay late and hurt your credit.

• Numbers 1, 4 and 7.

• Numbers 2, 3, 5 and 7.

• Numbers 2, 3, 5, 6 and 7.

• All of the above