Financial Literacy Quiz

The largest percentage of a typical household budget is spent on:

• housing

• entertainment

• food

• transportation

When you start a new job, you fill out a W-4 form to _________.

• determine how much your gross pay should be.

• file your tax return.

• to determine how much federal income tax your employer should withhold from your paychecks.

• avoid paying income taxes on your paychecks.

How does the decision to go to a trade school rather than a university affect the long-term financial goals of an individual?

• It leads to less hands-on training and less difficulty finding a job.

• It leads to more hands-on training and more difficulty finding a job.

• It creates more debt from tuition, and trade school takes longer to complete.

• It creates less debt from tuition and the ability to enter the workforce sooner.

The rate of which local tax is determined by assessing the value of land and buildings?

• income tax

• property tax

• sales tax

• use tax

How can enlisting in the military potentially benefit a person’s financial future?

• Enlistment provides a high-paying job upon discharge.

• Enlistment provides monetary options in U.S. military bonds.

• Enlistment provides grants and loans to help pay for community college or university tuition.

• Enlistment provides, until retirement, the opportunity to earn a high school equivalency certificate.

When preparing your taxes, what can possibly help reduce the amount of taxes that you owe?

• Stock and savings interest

• Sharing what you earned on a W-2 or 1099 form

• Having stock dividends

• Credits and deductions

Why is it necessary to have a W-2 or 1099 form when preparing your tax return?

• They highlight job performance which can reduce your tax rate.

• They include passwords for tax preparation software.

• These forms report income which needs to be used to file taxes.

• They show how much you have donated to charities.

A key difference between saving and investing is

• Saving is for everyone, investing is for the wealthy

• Your money is insured when investing, it is not in savings

• Investing has a guaranteed return, savings does not

• Saving is for emergencies and goals, investing is for long-term wealth

How can education influence a person’s career plans and goals?

• Obtaining an education reduces debt and makes it easier to pay bills.

• Going straight into a job allows someone to skip over entry-level positions.

• Going straight into a job helps a person to earn necessary certifications more quickly.

• Earning a degree or certification can lead to a person getting a job with a higher starting wage.

How does the decision to earn a bachelor’s degree contribute to a long-term financial plan?

• It increases the amount of expenditures in a household.

• It increases the amount of potential income in a household.

• It decreases the amount of potential income in a household.

• It decreases the amount of job opportunities for an individual.