Financial Lit 3A - 2023

At your job, you earn $3,000. After federal and state taxes, Social Security, and Medicare are deducted, your take-home pay is $2,500.

Therefore, your gross pay is ​ (a)   and your net pay is ​ (b)   .

• $3,000
• $2,500

Which is the best choice for reducing the amount of money you spend on food?

• cooking your own meals at home

• drinking more coffee so you are less hungry

• eat more snacks on the go and cook less at home

Which expense is considered a variable in someone's monthly budget?

• electricity bill

• rent

• car insurance premium

• student loan payment

Which is considered "paying yourself first"?

• put some of your paycheck into a savings account before you start spending

• wait until the end of the month to see how much money you have left over to save

• become self-employed

Historically, which earns higher returns?

• savings accounts

• stock market investments

You have a savings plan for future purchase goals. Match the goal with the purchase.

• a new cell phone

• mid-term goal

• buy a house

• short-term goal

• college tuition

• long-term goal

Experts recommend that you save enough to cover 3 to 6 ​ (a)   of expenses in your emergency fund.

• months
• days
• weeks
• years

When you use a debit card, where is the money deducted from?

• your checking account

• a credit card company

• your savings account

You have overdraft protection on your checking account. You have $10 in your checking account.

You decide to spend $12 on a movie ticket and $15 on dinner from your checking account.

What will most likely happen? (Choose 2.)

• you will be charged an overdraft fee for one or more of the purchases

• you will need to repay the bank for the amount overdrawn

• your account will be closed

You get a text alert from your bank stating that your account balance has dropped below $100. There has been a series of $20 withdrawals from ATMs, however, you have not used any ATMs! What should you do?

• contact your bank immediately - you're account has probably been hacked

• wait for your monthly statement, and then contact your bank

• nothing - the bank will catch the mistake and fix it