Consumer Math Final Review

What is the purpose of setting up and putting money into an emergency fund?

• You use that money in case an unexpected expense comes up that you must pay for.

• You invest the fund into the stock market and make a huge profit to use for emergencies.

• You use it to pay for college tuition or a major expense like a house.

• You save that money to use for common monthly expenses like your rent, insurance, and bills.

Marbella just got her first part-time job. Her aunt tells her to "Be sure to pay yourself first!" What does that mean?

• Marbella should pick up her check first thing in the morning when the bank opens.

• Marbella should make sure she buys everything she needs, before shopping for others.

• Marbella should save part of her paycheck first, before buying other things.

• Marbella should as her boss for a raise, so that her paycheck is higher.

Kellen wants a new video game system that costs $300. His allowance is $30 per month and saves $15 and spends $15 each month. How many months will it be until Kellen has saved enough to buy the game system?

• 10 months

• 12 months

• 20 months

• 30 months

Which of these is a key benefit of having a high credit score?

• You will have an easier time getting into a good college.

• You will have more money in your checking and savings accounts.

• You will qualify for better rates on loans or credit cards.

• You will earn more money from your employer.

Ronnie uses his credit card to buy new Bluetooth headphones at Audio Stop in a shopping plaza near his house. Where will the money come from for this purchase?

• The money will come straight from Ronny's paycheck account and go to Audio Stop.

• The money will come out of Ronny's savings account at the end of the month and be sent to Audio Stop.

• Ronny will take the money out of an ATM and repay Audio Stop.

• Ronny's credit card company will pay Audio Stop, and then Ronny will pay his credit card company.

If you are trying to get a loan to pay for a used car, what type of interest rate should you look for?

• A low interest rate so the total you pay is less.

• A high interest rate so that the total you pay is less.

• A compound interest rate so that the value of the car grows quickly.

• A high interest rate so that you can afford a fancier car.

Rita has her first apartment and her first high paying job. She is going to create a budget, what are 2 main categories she should use to start her budget?

• Paycheck and Taxes

• Insurance and Investments

• Income and Expenses

• Credit Cards and Debit Cards

If you have a part-time job when in high school, what would be the MOST common deduction from your paycheck?

• Retirement Savings

• Insurance Premiums

• Taxes

• You would be too young for deductions.

Which statement best describes NEEDS vs WANTS?

• Needs are monthly bills you must pay, while WANTS are monthly bills you are excited to pay.

• NEEDS are required expenses, while WANTS are optional items to buy.

• NEEDS are expenses for your entire family, while WANTS are expenses for you personally.

• NEEDS are expenses the government pays for you, while WANTS are expenses you must pay for yourself.

If John deposits his entire paycheck into his checking account, how much will go into his account if his NET PAY is $1,524.74 and his GROSS PAY is $2,000.00?

• $1,524.74

• $2,000.00