Personal Finance Review

Alex has 2 savings goals that will take him more than 3 years to complete. What type of savings goal is this?

• Long Term

• Medium Term

• Short Term

True or False: Some banks pay you interest on the amount of money you have in a savings account.

• True

• False

Answer explanation

A high yield savings account is considered to be a good low risk low return investment.

Why is it smart to save your money even if you don't have a savings goal

• So you can purchase the newest gaming console every time

• In case of any unplanned costs or emergencies

• It is not a smart idea to save your money unless you have a savings goal

John wants to buy a new tv. With his income, he should have enough to purchase it in 1 month. This is considered a....

• Long term savings goal

• Medium Term Savings goal

• Short Term Savings Goal

You are given a $1,000 bonus at work. In the past year, you have had a few unplanned expenses that nearly bankrupted you. You also have been wanting a new Lego set. What is the wisest compromise to make?

• Save all of the money from the bonus

• Spend all of your bonus on Lego sets

• Purchase a Lego set (less than $100) and put the rest into your savings

Answer explanation

This way you get a new Lego set but you also have money in your savings in case any more emergencies happen

How does a high skill job compare to a low skill job

• The high skill job takes more training and pays more

• The low skill job takes more training and pays more

• The high skill job takes more training and pays less

• The low skill job takes less training and pays more

Answer explanation

Because high skill jobs require more training and expertise, they're more valuable to the business. This is why they earn more.

Joe works for an insurance business Monday through Friday from 9:00am to 5:00pm. Joe has a _______ job.

• Full time

• Part time

Answer explanation

Working more than 40 hours a week is considered to be full time.

Mike works for an ice cream shop after his college courses. He does it to earn a little bit of money on the side, but he spends most of his day on campus in class. He usually works 15 hours in a week. Mike has a _________ job.

• Full time

• Part time

Answer explanation

Any job that is less than 40 hours a week is considered to be part time.

Despite its high risk, which of the following has the highest return? (you can make the most money this way)

• Investing in stocks

• Putting your money in a saving account

• Buying government bonds

If you want to buy a car or a home, and you don't have all the money for it, what can you do?

• Start saving

• Take out a loan

• Use your debit card

• Use your credit card