WISE Review 1

The phrase "pay yourself first" refers to the idea that you should...

• save money each paycheck before spending it on fun things

• pay yourself by direct deposit on the first of the month

• spend money on fun things before saving anything

• Pay your bills after you buy your wants

Skarleth chooses to go to the movies instead of study for her test. Studying for her test could be described as the __________

• Monetary Cost

• Sunk Cost

• Opportunity Cost

• Financial Cost

Investing in several different types of companies is a safer way to invest and is referred to as...

• Diversification

• Pay Yourself First

• Budgeting

• Liquidity

An expense that stays the same every month, like your rent, is known as a ...

• Fixed Expense

• Variable Expense

An expense that changes every month is known as a VARIABLE EXPENSE. Which is the best example of this?

• Groceries

• Rent

• Netflix Subscription

• Car Payment

John gets paid $4000 each month and then has $3400 leftover after taxes. After he pays his bills he has $1100. What term describes the $4000?

• Gross Pay

• Net Pay

• Discretionary Pay

John gets paid $4000 each month and then has $3400 leftover after taxes. After he pays his bills he has $1100. What term describes the $1100?

• Gross Pay

• Net Pay

• Discretionary Pay

John gets paid $4000 each month and then has $3400 leftover after taxes. After he pays his bills he has $1100. What term describes the $3400?

• Gross Pay

• Net Pay

• Discretionary Pay

Carl is determining how much life insurance to purchase for his family. To do this he should...

• buy a $1,000,000 plan because that is what most financial advisors suggest

• calculate how much $ his family would need to live without his income

• purchase the most expensive plan there is

• purchase a plan that covers 6 months of expenses

Money in the bank is insured by the...

• Federal Deposit Insurance Corporation (FDIC)

• Fair, Isaac and Company (FICO)

• Federal Reserved Board (The FED)

• US Treasury Department