Personal Finance Final Review

Jenna is wondering how she can improve her financial well-being. Which of the following would contribute the most to her financial well-being?

• Take a personal finance class to learn how to manage her money.

• Pay her grandma back the money she borrowed to take a school trip last year.

• Talk to her friends about how to manage her money better.

• Open another checking account to help her organize her money.

Megan experienced a trade-off regarding her decision to purchase a new dress for a school dance. Which situation best represents a trade-off?

• Megan found a dress she loved. She has the money to pay for it but she also needs to replace the tires on her car. She does not have the money for both.

• Megan found a dress she loved. She looked online and found a coupon that let her save 30% when buying the dress.

• Megan found multiple dresses she loved. She eventually chose the least expensive dress that she liked the most.

• Megan found two dresses she loved. She purchased the one that was most comfortable even though it cost $28 more than the other dress.

Amber's academic advisor has asked her to set 3 academic goals for this semester. These goals are MOST LIKELY to be accomplished if:

• Amber tells her parents about her goals over the phone

• Amber lets her friends set her goals

• Amber writes her goals down and sets a plan and timeline for them

• Amber thinks about her goals weekly

To increase his net worth, Jackson could…

• Increase his liabilities

• Decrease his assets

• Increase his market value

• Increase his assets

Since Taylor was a young child, she has kept her savings in a piggy bank. She likes the piggy bank because she has immediate access to her money. In a personal finance class at school, Taylor learned about depository institutions and why they are safer than piggy banks. Which aspect of security at a depository institution is NOT true?

• Depository institutions have insurance protection up to $250,000 per depositor per account type. If something happens to the money, you would get the value of the account back as long as the amount is no more than the insured limit.

• All money stores at a depository institution is kept safe at all times by numerous security measures.

• Information about depositors and their accounts is kept in secure data storage

• Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same institution as long as each account has no more than $100,000.

Amanda and Marcus just finished their income and expense statement for last month. They discovered that they have a net gain. What does this mean and what should they do?

• Amanda and Marcus are spending more than they are earning. They need to find a way to balance their income and expenses by spending less on non-contractual expenses.

• Amanda and Marcus are earning more money than they are spending. They could place additional money in savings and/or spend it on other expenses.

• Amanda and Marcus are spending more money than they are earning. One of them should consider getting a second job for a time to help boost their income.

• Amanda and Marcus are earning more money than they are spending. They should increase spending for non-contractual items to bring their income into balance with their expenses.

Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non-contractual expenses. Which group of expenses best fit this category?

• Cell phone bill, gasoline, and car payment

• Internet bill, entertainment, and clothing

• Motorcycle payment, food, and cell phone bill

• Gasoline, food, and entertainment

Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his FIRST step?

• Decide what income and spending categories would reflect his values, needs, and wants

• Decide how much money he can spend for each of the bills he pays each month

• Track his current income and expenses. If he has already created an income and expense statement then he has completed this step

• Develop a control system that will work with his lifestyle

Eric is writing a paper on the importance of investing in yourself and he is trying to add a key idea. Which of the following would be the best choice?

• Completing your college degree is the best and only way to prepare for a career

• Education pays in higher earnings and lower unemployment rates

• Human capital and transferable skills only result from formal training

• Investing in yourself too early can lead to a lower standard of living

Lora is a high-school computer teacher. She enrolls in a computer class at least twice a year to stay current on recent technology changes and updates. By continuing her education, Lora is investing in her…

• Salary

• Human capital

• Family

• Interest inventory