Personal Finance Study Guide

Which of the following is likely to have the least influence on an individual’s values

• A. Family

• B. Grade average

• C. Media

• D. Religious affiliations

Erica wants her class project to reflect her values. Which items would be best to include?

• A. Things that reflect her fundamental beliefs about what is worthwhile and important to her

• B. Things that she intends to acquire, do, reach or accomplish in the near or distant future

• C. Things that are necessary or essential for life and survival

• D. Things that are unnecessary but desired, which increase the quality of her life

Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set?

• A. Never – it is an ongoing process

• B. When his money management plan has established high well‐being

• C. When his financial goals have been established

Kaylee will save her allowance of $25 per month to purchase a $150 mp3 player in six months. This is an example of what type of goal?

• A. Long‐term goal

• B. Mid‐term goal

• C. Short‐term goal

• D. This is not an example of a goal.

Which of the following statements about our interactions with money is NOT considered to be true?

• A. You are better off in a community than by yourself

• B. Your present self impacts your future self

• C. Investment increases risk and reduces your ability to cope with risk and uncertainty

• D. You are responsible for your present self and your future self

Which factor is not influenced by values?

• A. An individual’s choice of friends

• B. An individual’s financial decisions

• C. An individual’s daily decisions

• D. An individual’s life cycle position

Mark and Susan, a recently married couple with full‐time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?

• A. Short‐term goal

• B. Long‐term goal

• C. Unrealistic goal

• D. Intermediate goal

Which of the following is not considered a required deduction

• A. federal income tax

• B. savings deposits

• C. state tax

• D. social security tax

A company allowance for full time employees whereby they are paid even though they are absent for a set number of days is called

• A. profit sharing

• B. leave of absence

• C. sick pay

• D. retirement plan

The form used to determine the amount withheld from a paycheck for income taxes is the

• A. w-2

• B. w-4

• C. FICA

• D. social security card