Financial Literacy Class Work

In general, the more education you have, the ________ your ________.

• higher; debt

• lower; debt

• lower; salary

• higher; salary

The best time to start investing money to reach your financial goals is ________.

• now

• in your forties

• in your twenties

• in your thirties

Which of the following supports the argument that many Americans pay too little attention to their personal finances?

• About half of Americans working full-time report having to live paycheck to paycheck.

• Workers can expect the federal government and possibly their state and local governments to deduct taxes from each paycheck they earn.

• A higher level of education generally leads to a higher salary.

• Bankruptcy involves a legal court taking over some or all of the finances of a person who is no longer able to pay his or her bills.

Bankruptcy is a legal process in which a(n) ________ takes over some of the finances of a person who is unable to pay his or her bills.

• investor

• financial advisor

• court

• bank

Which of the following is NOT a potential financial problem for which you should plan?

• Increased health care costs

• Uncertain economic future

• Anticipated problems with Social Security

• Higher interest rates for savings accounts

Understanding the opportunity costs of all your purchases is most likely to help you think about and change your ________.

• spending habits

• retirement plans

• study habits

• educational plans

A(n) __________ includes food, water, clothing, and shelter.

• need
• want

Which of the following is NOT a reason that the type of education you choose to pursue is a financial decision?

• Post-high school education is expensive.

• Your level of education significantly affects your career options.

• The number of years you go to school is related to your earning potential.

• You will be more likely to enjoy a job that holds your interest.

Which of the following is NOT a financial goal?

• Retiring at an early age

• Establishing an emergency fund

• Enjoying your career

• Making charitable donations

Which of the following is an example of charitable giving?

• Buying raffle tickets for a chance at a prize at a fundraiser for a homeless shelter

• Buying vegetables at the local farmer's market

• Buying clothing at a second-hand thrift store

• Buying products with a prepaid credit card