Personal Financial Literacy Pre-Test

1) What is Net Income?

• The amount of money you receive after deductions are subtracted from your gross income

• The total amount of money you earn

• The amount of money that is taken away in the form of taxes

• The hourly rate of pay that you earn

The image below shows average yearly salaries based on education level. According to this study done by Northeastern University, how much more does a person with an associate’s degree earn than a person with only a high school diploma over 10 years?

• $7,332

• $28,080

• $46,124

• $73,320

• I'm not sure

Jamie is studying to become an engineer. Engineers average salary in the United States is $91,000 per year. If Jamie is a single filer, how much will she have to pay in income tax?

• $20,020

• $21,840

• $22,000

• $24,000

• I'm not sure

 Before Anissa bought groceries on March 23rd, she had a balance of $487.25 in her checking account. What is her account balance after she made a cash deposit on March 25th?

• $429.75

• $547.75

• $574.75

• $399.75

• I'm not sure

Which is a variable expense?

• Rent

• Food

• Car payment

• Insurance

• I'm not sure

Why do people invest their money?

• To keep their earnings safe

• To grow their money over time

• To have money to spend right now

• To pay off loans or debts

• I'm not sure

Mr. Lloyd wants to buy a new television, but he does not have enough money in his bank account to pay for one. Which of these is NOT an option for Mr. Lloyd?

• He can use his credit card to buy the television now.

• He can use his debit card to buy the television now.

• He can save money and pay cash for the television at a later date.

• He can save money and use his debit card to buy the television at a later date.

• I'm not sure

Why is maintaining good credit important?

• Can help you graduate from college

• Allows you to borrow at lower interest rates

• Allows you to carry more cash than usual

• Might cause your interest rates to be raised

• I'm not sure

The longer a loan repayment period and the higher the interest rate, the... 

• larger the total amount of interest paid by a borrower.

• smaller the total amount of interest paid by a borrower.

• larger the total amount of interest paid by a lender.

• smaller the total amount of interest paid by a lender.

• I’m not sure

What are some strategies people use to manage risk? Select all that apply.

• Buy insurance to limit financial loss.

• Skip health insurance to save money because you are young and healthy.

• Put some money aside for emergencies.

• Put all of your money into one stock that you think is going to do really well.

• I'm not sure