Financial Responsibility and Budgeting

Gaia’s gross pay per month is $2,895. Her deductions are listed in the table.

What is Gaia’s net pay each month?

• $2,310

• $2,349

• $2,475

• $2,571

Benito’s family is thinking of relocating from Los Angeles to Oakland to save money. They set up a budget comparing the cost of living for both cities.

How much money will they save monthly by the move to Oakland?

• $1315

• $1560

• $1665

• $1765

Insurance is a financial service that allows a

• consumer to transfer all risk to a company.

• company to control finances for a consumer.

• consumer to share liability with a company.

• company to maximize risk for a consumer.

What are the main purposes of a budget? Select two options.

• to take out a student loan from the bank

• to plan future income and spending

• to apply for a mortgage

• to balance available resources and expenses

The basic purpose of insurance is to provide

• loans.

• prevention.

• protection.

• liability.

Which would be most helpful when considering a large expenditure that might require repeating payments? Select three options.

• careful consideration of short-term goals

• learning about opportunity cost

• creating a budget to consider future income and spending

Which is a possible benefit of having a good credit history?

• getting a high-interest rate on a credit card offer

• obtaining a low- interest rate on a loan

• obtaining a savings account

• having a paycheck garnished

There are four steps in solving one’s personal financial challenges:

1. considering opportunity costs

2. assessing risks and returns

3. setting short- and long-term goals

4. assessing needs and wants

Which of these is the correct order of these steps?

• 2, 3, 1, 4

• 1, 2, 3, 4

• 4, 1, 2, 3

• 3, 1, 4, 2

What is included in an individual’s personal assets? Select three options.

• number of dependents

• money

• career

• property

• investment