Personal Finance Final Exam

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

• Dining

• Expenses

• Buying a TV

• Loan payment on a new car

Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?

• Average cost of uber, lyft, or taxi

• Food and grocery store options in the area

• Employment opportunities

• Average rent

You are putting together your first post-graduation budget. Your take-home pay will be $2,500 per month. You estimate your monthly costs to be rent of $900, car related expenses to be $550, entertainment of $200, food expense of $250, cable bill of $75, mobile phone of $100, student loan payment of $400 and other expense of $150. How would you describe your budget after analyzing all of your income and expenses?

• You have a surplus of $125.

• You have a deficit of $125.

• You have a deficit of $2,625.

• You have a surplus of $2,500.

You overhear your cousin talking about the importance of creating and sticking to a budget. Which of the following reasons he gives below is actually FALSE?

• A budget can help you identify any bad spending habits.

• Using a budget can allow you to work towards your financial goals.

• Having a budget can help you create an emergency fund.

• Using a budget can qualify you for special discounts at your favorite stores

Which statement accurately describes how the 50/20/30 Rule would break down your take-home pay?

• 50% on flexible expenses, 20% on financial goals, and 30% on living expenses and essentials

• 50% on financial goals, 20% on living expenses and essentials, and 30% on flexible expenses

• 50% on living expenses and essentials, 20% on financial goals, and 30% on flexible spending

• 50% on financial goals, 20% on flexible expenses, and 30% on living expenses and essentials

You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for federal and state income taxes?

• W-2

• W-4

• I-9

• 1040

Which of the following have typically been the three largest categories of federal government spending?

• Infrastructure, Defense, and Science

• Health, Military, and Interest on Debt

• Veterans, Infrastructure, and Education

• Education, Defense, and Food/Agriculture

What does the term "withholding" mean in reference to your paycheck?

• It is the amount of your paycheck that you are NOT being taxed on.

• It is how much is being taken out of your paycheck in taxes.

• It is how much you are going to owe the government when you file your annual tax return.

• It is how much you earn and includes salary, bonus and commissions.

Which of the statements below is TRUE about filing your taxes, assuming your only income comes from the salary you earn at BigTech Company?

• You need to file your tax return by the end of the calendar year (typically December 31st)

• If your employer takes out federal income taxes through payroll withholdings, you do not need to file a tax return

• You must file your tax return by the deadline (typically April 15th of the following year) or request an extension by that date

• You do not need to pay any income taxes until April 15th, so you should ask your company to wait until after that date to withhold any money

Juanita has a part-time job that pays $12/hour and works about 50 hours every month. Her withholdings are Social Security (6.2%), Medicare (1.45%) and federal income tax (10%). What is her approximate net pay?

• $120

• $500

• $600

• $700