Family Dynamics-Personal Finance

How do wages and salary differ?

• Wages describe what you earn on an annual basis

• Salary describes what you earn on an annual basis

• Wages mean you have a standard amount in each paycheck

• Salaried employees are likely to be paid for overtime

Which of the following are TRUE about gross income and net income? (hint: choose 2 correct answers)

• Gross income and net income are the same

• Net income is sometimes called "take home pay"

• Gross income is the total amount earned before deductions

• Net income is the total amount earned before deductions

Which of the following may NOT always appear on your paycheck stub?

• Gross Pay

• Net Pay

• Your Role/Title

• Local Tax

It's common to have all of the following expenses BEFORE signing a lease EXCEPT...

• Renter's Insurance

• Application fee

• Application deposit

• Apartment hunting expenses

Which of the following might you pay WHEN you sign your lease?

• Finder's fee

• Application fee

• Security deposit

• Renter's insurance

According to a rule of thumb, rent shouldn't take up more than ___ % of your take-home pay.

• 7-12%

• 10-15%

• 15-20%

• 25-30%

Which of the following would typically NOT be covered under renter's insurance?

• A friend slips and twists his ankle in your living room

• Your apartment is broken into and your laptop is stolen

• A fire destroys 80% of your belongings

• Your apartment is flooded, destroying your furniture

Which of the following is a step you can take to mitigate the risk of buying a used car? (hint: choose 2 correct answers)

• Get a vehicle history report

• Have a mechanic inspect the car after you buy it

• Skip the test drive; you have time after you buy it to drive

• But a certified, pre-owned car from the dealer

Which of the following is NOT a cost of owning a car?

• License and Registration fees

• Gasoline

• Utilities

• Insurance

Which of the following reasons would explain why Justin has decided to forgo owning a car? (hint: choose 2 correct answers)

• Public transportation infrastructure does not exist

• The walking score in his city is high

• He only has his driver's permit

• There are numerous car dealerships in his area