Dollars and Sense Final Review

How can you improve your credit score?

• pay all your bills on time

• spend more money on your credit cards

• pay off and then close all your credit cards

• when merchant ask, credit or debit? always choose credit

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You then set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?

• 6 months

• 1 year

• 2 years

• 3 years

what are signs that your finances are being derailed by social media?

• falling for FOMO

• Believing in the fantasy

• Impulsive purchasing

• all of the above

Whats the difference between saving and investing?

You overhear your cousin talking about the importance of creating and sticking to a budget. Which of the following reasons he gives below are true?

• A budget can help you identify any bad spending habits

• Using a budget can qualify you for special discounts at  your favorite stores

• Using a budget can allow you to work towards your financial goals

• Having a budget can help you create an emergency fund

What payroll deductions does the Federal government use to operate

• FICA

• Income Tax

• Medicare Tax

• State income

Joanne is buying a new car for the first time and wants to make sure she does everything she can do to minimize the overall cost. Which of the following will help her the MOST?

• Lowering her interest rate from 4% to 2%

• Increasing her loan term from 60 months to 84 months

• Putting an extra 50 bucks on her down payment

A set dollar amount you agree to pay each time you receive medical treatment:

• Loss

• Liabiltity

• premium

• Copay

A retirement savings plan, sponsored through your employer who will often match your contributions, that allows an individual to save for retirement and have the savings grow while deferring taxes until funds are withdrawn:

• 401K

• Asset Class

• inflation

• IRA

Which should you use when creating a budget - NET PAY or GROSS PAY?

• Net Pay

• Gross Pay