2025 Personal Finance Final Exam Review

Ava wants to save up for new furniture, so she says, "I will reduce my spending by $200 each month by cutting subscriptions to save for furniture." Which SMART goal criterion is Ava missing in her plan?

• a. Time-bound

• b. Specific

• c. Measurable

• d. Action-oriented

Oliver, Hannah, and Emma are discussing ways to keep their financial info safe. Which of the following is NOT a smart move to protect your money?

• Put a freeze on your credit if you’re not opening any accounts soon

• Check your credit report at least once a year

• Avoid using any online banking or shopping services

• Create different passwords for different accounts

Charlotte, Liam, and Noah are discussing identity theft trends in the U.S. Which of the following is TRUE?

• Reported identity thefts have been declining

• Identity theft affects all ages, even children

• Bank fraud is the most common identity theft

• Identity theft mostly targets the elderly

Imagine Lily, Aria, and Abigail are out shopping when they realize their financial information might have been exposed. What is the BEST step they should take next?

• Dial 911 and report an emergency

• Cancel all your credit cards and close your bank accounts

• Call the stores you visited to ask if they saw anything suspicious

• Put a freeze on your credit and file an identity theft report with the FTC

Arjun and Olivia are filling out their 1040 forms together. Why should they be extra careful during this process?

• A mistake will disqualify you from future refunds

• The 1040 form decides if you owe taxes or get a refund

• Filling it out wrong will change how much tax is withheld from your paychecks

• Mistakes make you ineligible for employment next year

4. All of the following would show up on a credit report EXCEPT...

• Salary of your current job
• Payment history of your car loan
• Credit card payment history
• Student loan activity

Ethan, Abigail, and Michael are learning about bank accounts. Which of the following statements is NOT true about bank accounts?

• If the bank is FDIC-insured, your money up to the FDIC limit is safe if the bank fails

• Many banks pay interest on savings accounts

• Savings accounts earn higher returns than the stock market

• Money in a checking account is easy to access by ATM, debit card, or check

Grace and Noah are curious about Medicare. Can you help them figure out what Medicare actually funds?

• An employee's medical plan from their employer

• The nation’s retirement program for the elderly

• The nation’s health care program for the elderly and disabled

• State government agencies providing public assistance

Abigail and Daniel are competing to see whose investment doubles first! If Abigail invests her money at a 6% interest rate, using the Rule of 72, how many years will it take for her money to double?

• 36

• 18

• 12

• 9

Sophia and Samuel are the same age and both dream of buying their first home. Sophia started saving $2,000 a year when she turned 22. Samuel, on the other hand, waited until he was 27 but saved $4,000 a year. Now that they're both 32, who has a bigger nest egg for a house down payment?

• Sophia, because she saved for 10 years.

• Samuel, because he saved more each year.

• Sophia, because her money has grown a longer time with interest.

• Both are the same - they saved the same amount.