Personal Finance - Everfi Future Smart

Which of the following is a variable expense for many adults?

• Their monthly cost of eating out at restaurants

• Their monthly rent payment

• The monthly payment on their car loan

• Their monthly payment for health insurance

Which of the following is not a source of income?

• Your annual salary for doing your job

• Your monthly student loan payment

• The stipend you receive for doing an internship

• The wages you receive after a work shift

What is a premium?

• The amount you pay the insurance company for coverage.

• The amount you are personally required to pay before your insurance covers the cost.

• A fixed fee you pay for specific medical services.

• The most you have to pay for health care in a full year.

What is the problem with paying only your minimum credit card balance each month?

• It lowers your credit score

• You have to pay interest

• The bank will cancel your credit card

• You can't get other credit cards this way.

You are creating a budget for your new business. What should you include?

• All income and expenses

• Fixed expenses but not income

• Income but not variable expenses

• Fixed and variable expenses but not taxes

The opportunity cost of earning an advanced college degree is that:

• You will earn more income during your career

• You will earn less money during the years that you are in college

• Some fields require a professional degree before you can begin working

• There may be a low supply of jobs in your professional field

Which of the following is NOT true of a budget? [note capitalization of “NOT”]

• Budgets help you plan how to spend money you earn or receive

• Once a budget is set, it should not be revisited

• A budget can include charitable giving

• Budgets include both income and expenses

Over their whole lifetime, about how much can someone with a professional degree expect to earn compared to someone with a high school diploma who didn’t attend college?

• The same amount

• Twice as much

• Three times as much

• Four times as much

Which of the following is NOT a successful budgeting strategy?

• Keep some extra money in your budget for emergencies

• Pay with a credit card if you have a hard time sticking to a budget

• Think about which items are your most important needs

• Revisit your budget regularly and make adjustments

If Chris has car liability insurance, what damage would he be covered for?

• Repairing damage to other cars if he got into an accident that was his fault

• Repairing damage to his own car if he got into an accident that was his fault

• Repairing damage to his own car that was caused by storms or theft

• Repairing damage to his own car that was caused by another driver who does not have car insurance