WISE Review: Money Management & Financial Planning

Liam wants to calculate his personal net worth. What is the formula he should use?

• Add liabilities to assets

• Subtract liabilities from assets

• Multiply liabilities by assets

• Divide liabilities by assets

Which of the following is NOT a consideration for a financial plan?

• Financial goals

• Investment and insurance needs

• Favorite hobbies

• Major purchases

What is the purpose of a will?

• To determine tax refunds

• To outline beneficiaries for assets

• To plan for college expenses

• To manage daily budgets

Sophia is curious about how the government uses the money collected from taxes. What is the primary purpose of tax revenue?

• To increase personal savings

• To fund public services

• To reduce net worth

• To plan retirement

Mia is starting her own business and wants to ensure she manages her finances well. Why is it important for Mia to keep financial records?

• To manage money effectively

• To increase liabilities

• To reduce insurance needs

• To avoid making purchases

What is one advantage of owning a home compared to renting?

• Fewer responsibilities

• Tax deductibility of mortgage interest

• Learning about the community

• No need for a down payment

What is often purchased for cell phones and computers?

• Extended warranty

• Product insurance

• Software updates

• Screen protectors

What is a potential problem of getting involved with games of chance?

• Increased savings

• Improved decision-making skills

• Gambling

• Enhanced financial literacy

When Abigail is considering buying a new home, what is a key factor she should evaluate in a mortgage loan?

• The color of the house

• The length of the mortgage

• The number of bedrooms

• The type of neighborhood

When Kai decided to move to a new city for a job, what did renting a home allow him to do?

• Build equity

• Avoid all responsibilities

• Learn about the community

• Gain tax benefits