Unit 13: Personal Finance

Which of the following statements best describes what a pay check is and what the pay stub explains?

• The pay check is what you made gross. The pay stub tells you what you paid in deductions this week.

• The pay check is the amount you made after all deductions were taken out. The pay stub tells you what you paid in taxes.

• The pay check is your net amount that you can despoit in your bank and spend. The pay stub shows the amount of your taxes plus the amount of other deductions. It also shows what each deduction was for and has a yearly total for each category listed as well.

• The pay check is the amount of net money you can deposit in your bank. The pay stubs lists all your deductions and show what you have paid for the entire month.

Which of these is an example of income?

• Ali buys a new pair of brand name sneakers.

• Sam takes out a loan to pay for his college tuition.

• Maria puts money into a checking account at a local bank.

• Timothy earns an hourly wage working at a fast food restaurant.

What are the associated risks of debt?

• Decreased financial stability (causes stress)

• Achieving financial goals (long-term purchases)

• Increased income (more money to spend)

• Increased savings (saving for the future)

Which of the following describes the uses of debt?

• A tool to finance expenses

• A tool to increase savings

• A tool to limit spending

• A tool to achieve financial goals

What are the benefits of saving money?

• Helps to increase debt

• Helps to decrease financial stability

• Helps to achieve financial goals

• Helps to spend money on unnecessary items

Which of the following is a reason for savings?

• To spend money on unnecessary items

• To decrease financial stability

• To increase debt

• To have money for emergencies or large purchases

What are the benefits of having a household budget?

• Helps to increase debt

• Helps to decrease savings

• Helps to avoid paying bills on time

• Helps to limit spending

Which of the following is a reason for having a household budget?

• To limit spending

• To increase debt

• To decrease savings

• To avoid paying bills on time

Which of the following is the starting point for personal financial management?

• Budgeting

• Saving

• Income

• Debt

What is investing?

• Spending money on anything you want

• Saving money constantly

• Using money in hopes of gaining more in the future by lending to businesses in exchange for a share of profits

• Setting aside money for future