EverFi Test 1

“Pay yourself first” means you should put a part of every paycheck into your future. Which one below would be included in this plan?

• Saving money in a retirement account, investing in stocks, or building an emergency fund
• Not saving any money at all
• Borrowing money to buy unnecessary items
• Spending all the paycheck on luxury items

With the 50-30-20 method, you think about your budget in terms of percentages. You should aim to spend no more than 50% of your budget on needs and no more than 30% of your budget on wants. What should the 20% be spent on?

• Savings or financial goals
• Donating to charity
• Investing in luxury items
• Spending on unnecessary expenses

With the ________method, you think about your budget in terms of different categories. You can break this up into as many categories as you want.

• categories

• container
• jar
• saving

Match the action step to the definition

• Reduce the amount of money you spend

• Plan a savings strategy

• Create a savings account for events

• Manage your debt

• Know what you are saving up for

• Create savings goals and timelines

• Pay down credit card bills.

• Put aside savings for emergencies

• Spend no more than 50%/30/20

• Cut spending on wants

Why is a Roth IRA a good investment for teenagers?

• Late retirement savings, low returns, and lack of investment diversification.
• Tax-free withdrawals, limited investment options, and high fees.
• Taxable growth of investments, strict withdrawal rules, and no employer match.
• Tax-free growth of investments, flexibility for withdrawals, and early retirement savings.

If you are under 18, what type of retirement account is available to you?

• 401(k)
• Traditional IRA
• SEP IRA
• Custodial Roth IRA

In order to open up a Roth IRA, how do you need to earn your money?

• From selling personal belongings
• By winning the lottery
• Through inheritance
• Index funds which invest money in the stock market for you

Equipment, inventory or other goods that are pledged to the bank in the case the company can not make a loan payment

• mortgage

• securities

• share

• collateral

True or False: All wages, tips, and bonuses are taxable unless specifically excluded.

• True

• False

_____can be any descriptive or measurable details about a thing. Companies collect ____ about their customers or users in order to better understand their habits and interests so that they can increase sales and more precisely use targeted marketing.

• Facts
• Data
• Information
• Statistics