Financial Planning Association

Which of the following is true about an IRA (Individual Retirement Account)?

• Roth IRAs offer tax-deductible contributions.

• Contributions to a traditional IRA are taxed upon withdrawal.

• Both Traditional and Roth IRAs allow tax-free growth.

• Withdrawals from a Roth IRA are always taxed.

How long do you keep cancelled checks?

• 3 years

• 6 years

• Until you verified your bank statement

• 1 year

HoHow long do you keep pay stubs?

• 3 months

• Until 2 years past employment

• Until you verified your bank statement

• Until you verified your W-2

Which of the following is known as an expense that is not absolutely necessary?

• Gross

• Net

• Discretionary

• Credentials

What are 2 things consumers spend most of their money on?

• Food and Clothes

• Housing and Transportation

• Insurance and Housing

• Transportation and Food

Which of the following is known as purchasing an item on a whim?

• Impulse

• Fixed

• Flexible

• Online Purchase

What is the purpose of a balance sheet?

• To determine your budget

• To determine your income

• To determine your credit card debt

• To determine your net worth

Why do you need to keep a record of donations to charity for?

• Legal Proof

• Loan Application

• Tax Purposes

• Medical Reasons

Which of the following is an expense that stays the same every month?

• Rent

• Groceries

• Electric

• Credit card

Which of the following is known as something you owe.

• Assets

• Liabilities

• Identity Theft

• Budgeting