Financial Literacy Final Exam Review

When it comes to creating a solid money management foundation, which of the following is NOT TRUE?

• Know your income and expense

• Protect your assets and income

• Splurge on expensive wants when you are young because you have more time to pay them off

• Set short and long term goals and have a plan to achieve those goals

Which of the following states the important components of a good goal?

• General, revised, active, safe, sound

• Written, clear timeline, research-based, influenced by family, influenced by friends

• Specific, measurable, achievable, realistic,

  time-based

• None of the above

Which of the following would be a good MEDIUM range goal?

• Starting a savings account for college when you are a freshmen

• Opening an IRA (retirement account) after you het your first paycheck

• Starting today to save for summer vacation

• Saving for a used car that you plan to purchase within the next 1-2 years

Which item is NOT TRUE about a 529 Education Savings Plan?

• Allows investment into a child's education

• Allows withdrawals of unused portions for retirement

• Withdrawals tax-free as long as they are used for qualified expenses

• Open to anyone who wants to contribute

Which of the following is TRUE about someone's education and their job prospects.

• Someone with only some college will make as much money as someone who graduated high school

• Generally, someone who did not graduate high school should expect to make less over their lifetime than someone who graduated college or went into a trade

• Someone with a college degree will get laid off before someone with only a high school diploma when the economy turns bad because a college degree costs a company more money

• High school dropouts tend to have lower unemployment rates since they fill the jobs that college educatedpeople refuse to take

All of the following are downsides to using credit

EXCEPT which one?

• Reduction of future spendable income

• Failure to pay off debt on time can have serious consequences

• Balances paid off each month

• Overspending using credit versus cash

Why should I develop a professional resume and practice my interview skills?

• To save time and get the job you want instead of wasting time unemployed or in a dead-end job

• To receive a salary at the upper end of the range for your position

• So you can take the first job offer presented to you

• Both "A" and "B"

What steps can I take now to increase my chances of getting the job I want?

• Network with others working in the field

• Build your skill set by doing volunteer work in your chosen area

• Practice your job interviewing skills

• All of the above

What is the first thing I should do BEFORE searching

for a job in my chosen career path?

• Complete a clean, professional resume

• Think about what you enjoy doing, the industries you're attracted to, and your strengths. Then research industries/jobs that match those interests and strengths.

• Earn a college degree

• None of the above

This is the form you have to fill out after you initially get hired or when you have a life changing event like get married or have a child

• W2

• W4

• Work Permit

• 504 plan