Pay Off Master Post-Assessment

If you must borrow money to attend college, what is the most you should borrow?

• $10,000

• No more than your first year’s anticipated salary

• No more than twice your first year’s anticipated salary

• None of these answers are correct, you should never borrow money to attend college

Your apartment burned to the ground. Select each item your landlord was responsible for insuring.

• Your clothes

• Your laptop

• Your cellular phone

• The apartment buidling

You do not use checks, only your debit card, and you opted into overdraft protection (covers your transactions when you don’t have enough money in your account). You start the day with $41 in your checking account and spend $15 at the football game, $10 for burgers, and $15 for gas. You attempt to purchase $120 for new clothes at the mall, but are declined because your checking account has insufficient funds. How much in total fees will be charged to your account by your bank?

• $0

• $3

• $12

• $24

If you are assessed fees by the bank, select the process for the bank collecting the fees.

• The bank sends you a bill, only payable with cash or a check

• The bank sends you a bill, which you can pay with a credit card

• The bank takes the money out of your account immediately

• None of these answers are correct

Most payday loans are repaid in full and on time with minimal fees.

• TRUE

• FALSE

. Sam is 15 and invests $1,000 from his summer job in a Kiddie IRA. The IRA ends up earning 12% per year. How much will Sam’s investment be worth at the age of 21?

• There is no way to know for sure

• $500

• $1,000

• $2,000

You and your friends just signed a month to month lease for an apartment in your name right out of high school. You pay $600 a month in rent ($1,800 total). Your friends move out at the end of January. How much of the rent are you responsible for paying for your apartment in May?

• $0 as long as you give 30 days notice

• $600, your portion of the rent

• $1,800 for the month

• The remainder of the rent owed for the calendar year

You are contributing to a 401k. Your financial planner charges .5% annually, the index funds you are invested in charge .25% annually, and your employer pays your 401k fee. Your investment returned 7.75%! After accounting for fees, what was your actual return?

• A loss of 7%

• 0%

• A gain of 7%

• A gain of 7.75%

Select the strategy you should NOT use prior to making an important financial decision.

• Consider the opportunity cost of your choice

• Take your emotional pulse

• Focus on multiple decisions at a time

• Play “Devil’s Advocate” with yourself

You have received the financial award letter from your favorite college, which is exhibited below.

How much are you responsible for paying over four years?

• $0

• $5,000

• $10,000

• $40,000