Financial Math Final Exam Review 24-25

An individual's expenses and outstanding debts are called......

• Liabilities

• Budget

• Financial Plan

• Net Worth

1. You have submitted your FAFSA and you're ready to start accepting financial aid. What type of aid should you accept first?

• 1. Work study

• 1. Grants and scholarships

• 1. Private student loans

• 1. Federal student loans

When making a budget, the ______________ pay should be used.

• Bonus

• Gross

• Net

• Annual

What does it mean to "pay yourself first?"

• Do all of your budgeting at the beginning of the month, rather than at the end.

• Be self-employed, so that you don't have a boss and get to keep all income from your business for yourself.

• Auto-deposit a set amount of money into savings after each paycheck so that you don't spend all your income.

• Set aside some fun money in each month's budget so you can enjoy yourself.

The sum of the individual's current assets minus the individual's total liabilities is called....

• Net Wealth

• Net Revenue

• Net Worth

• Net Profit

Why is it important to create a budget?

• A budget is a necessary to qualify for loans and credit cards.

• A budget will guarantee you have enough money saved for college so you won't need loans.

• A budget makes filing your taxes faster and simpler.

• A budget will help you save money and prioritize your spending.

Which of the following refers to personal belongings which have value?

• Net Worth

• Liabilities

• Assets

• Net Profit

Which of the following is a fixed expense?

• Daily Starbucks coffee

• A large car repair bill

• A concert ticket

• Rent

Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward ________ , 30% of your monthly income toward ________, and 20% of your monthly income toward ________.

• Needs, savings, wants
• Needs, wants, savings
• Savings, needs, wants
• Wants, needs, savings

Which of the following situations is an example of NET PAY?

• Helene multiplies her hourly wage by her total hours worked then subtracts taxes, deductions, and budgeted needs.

• Timothy multiplies his hourly wage by his total hours worked then subtracts taxes and deductions.

• Chrissy multiplies her hourly wage by her total hours worked then adds overtime.

• Brian multiplies his hourly wage by his total hours worked.