Personal Finance Semester Review - day 1

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 net pay on his paycheck?

• $501.66

• $363.32

• $576.92

• $640.00

Mark and Susan, a recently married couple with full‐time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?

• Short‐term
• Intermediate
• Long‐term
• Unrealistic

Kaylee will save her allowance of $25 per month to purchase a $150 MP3 player in six months. This is an example of what type of goal?

• Short‐term goal
• Long‐term goal
• Mid‐term goal
• This is not an example of a goal.

If you needed to save $2160 for your first semester of college which starts in 18 months, how much would you have to save each month?

• $50

• $100

• $120

• $150

A reference of how you have used credit in the past.

• Collateral

• Credit Report/Credit Score

• Personal Reference

• Interest Rate

Which type of insurance do you NOT need to purchase?

• Travel

• health/disability

• car

• home/renters

What is the amount of wages you need to report on your 1040? (Box 1)

• 50,000

• 35,000

• 40,000

You mow neighbor’s lawn

• Income

• Expense

You get allowance

• Income

• Expense

You go to the movies

• Income

• Expense