Financial Wellness 2023-24 Sem 2

Julia received her monthly paycheck and noticed two amounts listed: gross pay and net pay. Which of the following statements about these amounts is true?

• They are the same

• Gross pay is the amount after taxes and deductions

• Net pay is the amount after taxes, benefits, and deductions (it's your take home pay)

• Gross pay is your total earnings in a year

Before withdrawing money from an ATM outside the grocery store, what is a crucial step you should take?

• Ask a passerby for assistance in using the ATM

• Choose an ATM located in a secluded alley for privacy

• Check the ATM for any signs of tampering

• Tell your shopping buddy your PIN so you don't forget it

Saul is looking to diversify his investment portfolio. He wants to invest in a vehicle that pools money from many investors to invest in a variety of securities. This type of investment is known as a:

• mutual fund

• interest

• savings account

• real estate

Imagine you've just discovered suspicious activities on your bank statements. To safeguard your financial identity, what is one of the most effective steps you can take? (one correct/best answer)

• Placing a credit freeze with the credit bureaus

• Waiting a few months before taking any action

• Changing your email password

• Signing up for a new credit card

Imagine you've been using your credit card for everyday purchases and you make sure to pay off the balance on time every month. Doing this consistently can help in building your credit history.

• True

• False

• Only if it's a secured credit card

• Only if the balance is over a certain amount

Imagine you accidentally rear-end another car at a stoplight. Having liability insurance will pay for injury to the other driver and/or damage to their car.

• Only if you have comprehensive coverage

• Only in no-fault states

• False

• True

Imagine you're planning a vacation. A budget can help you keep track of how much money you'll need for the trip.

• True

• False

• Only if you have a high income

• Only if you use a financial advisor

Alex is planning to attend college next year. Why should Alex complete the Free Application for Federal Student Aid (FAFSA)?

• it is a requirement for college admission

• it allows you to be eligible for early college admission

• it allows you to be eligible for federal student aid and other scholarship and grants

• it gives you access to private scholarships

Imagine you've just received an alert that someone attempted to open a credit card in your name. Placing a freeze on your credit report can help protect you from fraud because: (mark the 2 correct answers)

• think someone is trying to approve a new credit account in your name

• you suspect your personal information or identity was stolen

• it increases your credit score

Imagine you've just started your first job and are looking into opening a savings account. Which of the following statements about savings accounts is FALSE?

• Savings accounts pay interest on the money you deposit

• Savings accounts allow an unlimited amount of withdrawals each month

• Savings accounts may require you to maintain a minimum balance to avoid fees

• Savings accounts are best used to store money for longer term goals