Which of the following best describes the difference between gross pay and net pay?

Gross pay is the amount earned before deductions like taxes and insurance, while net pay is the amount left after deductions.

Gross pay is the final paycheck amount you receive after all deductions, while net pay is the amount earned before any deductions.

Gross pay includes only salary, while net pay includes all bonuses and overtime pay.

Gross pay and net pay are the same; both represent the amount of money you take home after deductions.

Which of the following would be considered a tax deduction?

all of these would be considered a possible tax deduction

children or parent you are caregiver for

Why would a person want to include tax deductions when filing their taxes each year?

To reduce their taxable income, which can lower the amount of taxes they have to pay.

To increase the total amount of taxes they owe to the government.

To ensure they receive a larger refund from the government.

To make sure they pay the maximum amount of taxes required by law.

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?

dining out at local restaurants

postponing a purchase for a big-screen TV

Which of the following is a sign that you have a budget deficit?

you overdraft your checking account on a consistent basis (with a $34 cost per overdraft!)

your savings account balance grows every month

your checking account balance grows every month

you are able to pay more than the minimum loan payment towards your student loans

Isaiah works for the summer at a technology company and has a salary for the summer of $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2500. Which of the below statements is correct?

His gross pay is $3,000 and his net pay is $2,500

his gross pay is $2,500 and his net pay is $3,000

His gross and his net pay are $3,000

His gross and net pay are $2,500

You are at the checkout counter at a local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

it is deducted directly from your checking account

your credit card company covers the cost

your credit card company provides you with a cash advance to cover the cost

it is deducted from your credit card account

Which item would you expect to find on your monthly bank statement?

the total amount of deposits you made during that month

the potential cost of using out of network ATMs

the terms and agreement of your account

a list of the vendors you have set up autopay with

Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM card in over a week and wonders what she should do. What would you recommend?

contact your bank immediately as it appears that your account may have been hacked

wait until your monthly statement arrives so you can check to see if those withdrawals are still there

wait a week as it is fairly common for the bank to catch mistakes like this

check your wallet to be sure your debit card has not been stolen. If you still have it, then you shouldn't worry.

Which of the following is a way to access the money in your checking account?

Using a debit card linked to that account to pay for groceries at check out

taking out cash using your credit card in the ATM machine

depositing a paycheck in an ATM

receiving a person-to-person payment from your friend

Choose the BEST answer: Which of these represents a major convenience of using a mobile banking app?

you can deposit physical checks by using your phone to take a picture of the front and back and sending it through the mobile app

most banks will waive all fees for customers who use mobile banking

mobile banking is the only way to transfer money electronically between accounts

you can leave your debit card safely at home, because stores that accept debit will also take payment from your bank app via your phone instead

Which two of the following statements are advantages to online banking?

with online banking, you can view your daily transactions and balances rather than waiting for your monthly statement

using online banking, you can request transfers, pay bills, and automate your savings without visiting the bank branch building

when you set up online banking, your bank will waive overdraft, ATM, and monthly fees

you can shop online, only if you bank account has online banking features

When using online and mobile banking, which of these is a smart tip to keep your account safe?

choose clever and secure usernames and passwords, and keep them secret

never password protect your phone

share your log-in information with a trusted friend in case of emergency

use easy to remember numbers for your online PINs, such as your social security number or birthday

What is the mathematical formula that you would use to describe the financial activity on a bank statement?

previous balance + deposits - withdrawls- fees = ending balance

previous balance + deposits + withdrawals + fees = ending balance

previous balance - balance + withdrawls - fees = ending balance

previous balance - deposits -withdrawls + fees = ending balance

Marcia works a part-time job during her junior and senior years of high school. Although her main goal is to save money for a really nice laptop, she'd also like to build up an emergency fund. She wants to have at least $500 to take with her in case she needs it during college. Which savings strategy is most likely to help Marcia meet her goal?

Determine how much she needs to save from every paycheck to afford the laptop and the emergency fund, and then auto-deposit that amount into a savings so she is less likely to spend it.

Go ahead and spend her paychecks during her junior year of high school, but save all the money she makes during her senior year.

She should not worry about an emergency fund—if she got access to student loans, she can just pay for college expenses that way!

Assume she sets aside whatever is leftover after she pays bills and goes out with friends each month, she'll have more than enough money for the laptop and the emergency fund!

Which of these is the best definition of "credit"?

A system that allows you to borrow money or access goods and services with the promise to pay later.

A type of loan that must be paid in full within a month.

Money saved in a bank account for future use.

A score that represents how much money you owe to others.

Which of these is not an example of using credit?

Using a credit card to purchase a new phone

Taking out a loan to pay for college tuition

Financing a car purchase with a monthly payment plan

What is a credit history?

How much credit you have used in the past, as well as how you approach bill paying

A printable record of all the credit you have had in the past 7+ years, including addresses and workplaces

An assigned numerical rating based on your current and past bill paying and credit seeking ability

Something of value the bank can take if you don't pay your loan

What is a credit report?

A printable record of all the credit you have had in the past 7+ years, including addresses and workplaces

Experian, Equifax, and Transunion - collect information on credit users

Someone that signs off responsibility for the loan with you

An assigned numerical rating based on your current and past bill paying and credit seeking ability

What is a credit score?

An assigned numerical rating based on your current and past bill paying and credit seeking ability

How much credit you have used in the past, as well as how you approach bill paying

Something of value the bank can take if you don't pay your loan

Experian, Equifax, and Transunion - collect information on credit users

What are credit reporting bureaus?

Experian, Equifax, and Transunion - collect information on credit users

Someone that signs off responsibility for the loan with you

A printable record of all the credit you have had in the past 7+ years, including addresses and workplaces

An assigned numerical rating based on your current and past bill paying and credit seeking ability

Something of value the bank can take if you don't pay your loan

How much credit you have used in the past, as well as how you approach bill paying

An assigned numerical rating based on your current and past bill paying and credit seeking ability

Someone that signs off responsibility for the loan with you

Experian, Equifax, and Transunion - collect information on credit users

A printable record of all the credit you have had in the past 7+ years, including addresses and workplaces

How much credit you have used in the past, as well as how you approach bill paying

Which response best completes the sentence, "it's best to begin establishing credit when you're young because..."

you will likely need a credit history to rent your first apartment, finance your first car, or open an unsecured credit card.

interest rates will only continue to grow as you get older

you need a credit history and report to qualify for student loans

credit scores are free for everyone under the age of 25

Frank and Jasmere are both shopping for a new car. They are looking for a $20,000 loan to pay for the new car that they will pay back over a 5 year period. Frank has a credit score of 730 and Jasmere has a score of 600. Which of the following statements is TRUE?

Jasmere's monthly payment on the loan will be about $100 more than Frank's payment

Over the 5 year period, Jasmere and Frank will pay the same amount for the car loan

Frank's monthly payment on the auto loan will be about $100 more than Jasmere's payment

Lenders are not allowed to charge people different interest rates based on their credit scores.

Caleb is trying to select his first credit card, and he's got it narrowed down to two other options he thinks would work really well with his circumstances. What should his final step be before making a choice between two?

Read the fine print for each credit card before making a final choice

Choose the credit card offering the best promotional deal for applying

Ask his friends for recommendations

Put off getting a credit card until he is older and has a #1 best choice in mind

Elizabeth is considering buying a $30,000 card. Which of these financing options will likely lead to the LOWEST monthly payment?

$3,000 down payment, 6% interest rate, 84 months

$3,000 down payment, 6% interest, 60 months

$0 down payment, 6% interest, 60 months

$0 down payment, 0% interest, 36 months

What is one of the MAIN reasons to save or invest?

all of these are reasons to save or invest

have money for goals and future plans

What is a CD (certificate of deposit)?

Setting money aside in an account at a bank for a set amount of time, bank determines interest based on amount and length of time