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WorksheetsTECH MATH FINAL
Total questions: 50
Worksheet time: 30mins
When it comes to personal finance success is 80% ____ and 20%____
Luck and hope
Trial and Error
Force and Jedi
Behavior and Knowledge
The first foundation of personal finance is
Live at home
Create and emergency fund
Open a bank account
Get a credit card
Roth IRA grows
before taxes
tax free
never
after age 25
To have a FICO score you must have
a job
credit
debt
a mortgage
Using___________is a good way to find a bargain
jedi mind trick
credit
layaway
cash
Liquidity of your money means_____________
availability
loss
growth
You should always use one of these when buying a house
realtor
friend
emergency fund
What does the 50 refer to in 50/20/30
variable costs
the amount for savings
percentage of fixed costs
college fund
If you mortgage payments exceeds this amount of your net income then you have bought more house than you can afford
20%
30%
15%
25%
Gross pay is the amount of pay____________
before taxes
after taxes
Net pay is the amount of pay
before taxes
after taxes
A good age for a person to open a checking account is___
5 years old
13-15 years old
25 years old
18 years old
How often should a written cash flow plan be done?
daily
monthly
yearly
occasionally
It usually takes this long for a budget to start working well
1 month
1 year
6 months
3 months
What is the primary reason for insurance?
to live risk free
transfer risk
pay down taxes
have a car
What is a tax deduction?
An expense, such as a charitable contribution, that can be deducted from one's taxable income
An expense, such as a charitable contribution, that can't be deducted from one's taxable income
A yearly fee that is charged by the credit card company for the convenience of the credit card
A fee taken from a bank to pay taxes
What does a credit score measure?
the amount of credit card debt
your income
how much you spend on credit cards
you relationship with debt
If you receive a grant..
you have to pay it back
you have to pay back only what you use for school
be happy because you don't have to pay it back
What is the second of the five foundations?
Pay cash for college
Get out of debt
Pay cash for a car
Build wealth and give
What does it mean to finance a purchase?
Pay in full and take home today
Take out a loan to pay for it
Rent for a given time frame
The process of communicating the value of a product or service to customers is called
financing
marketing
management
The financial opportunity that is given up because you choose to do something else with your money is called
wait cost
marketing cost
opportunity cost
finance cost
Negotiating means to
To bargain for a lower price
Take the offer and run
Pay less for what they offer
Risk Return Ratio is
How much companies return to investors
How much you invest in a company
Relationship of substantial reward compared to the amount of risk taken
Securities that represent part ownership or equity in a corporation are called
shares
dividends
stocks
bonds
Any income (wages/salary) that is generated by working
funds
earned income
gross wages
Tax paid out by anyone who earns an income is called
cash tax
income tax
wage tax
An example of passive income is
checking account
wages
real estate
What is a zero based budget
a budget when you are starting out
a budget that assigns every dollar to an expense
a budget at the end of the month
The two parts of FICA are
Medicare and Social Security
Fed and State Taxes
Wages and deductions
Credit cards charge this type of interest
compound
simple
fixed
variable
Building wealth is most like a
sprint
huddle
marathon
tennis match
People spending more than they are making
good idea
leads to a negative savings rate
makes people happy in the end
only on groceries
Why is it important to have a cash flow plan?
Having a cash flow plan allows you to be open to who your money goes to
Having a cash flow plan allows you to be intentional with your spending and saving
Having a cash flow plan allows you to be free with your credit card spending
90% of all millionaires have this in common..
they leave work early
they played college sports
they read.... a lot
they don't have a budget
The benefit of diversification is
reduced risk
reduced tax liability
increased return
increased risk
To ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would contribute to
A 401(k)
An annuity
Roth IRA
Traditional IRA
An example of an employee matched contribution plan
TSA
Roth IRA
401(k)
403(b)
The Rule of 72 refers to ...
The number of days your bank account is open before it makes interest
The amount of time you must wait for your money after investing
The amount of time it takes your money to double
The maximum return rate on your money
What is your largest wealth building tool?
your income
your parents income
my savings
my retirement
Your monthly budget should include
fixed costs
variable costs
discretionary items
all of the above
Which of the following is the most cost-effective option for purchasing a home?
A) Get a 15-year mortgage with a 5% down payment.
A) Get a 30-year mortgage so that you can get the lowest possible payments.
A) The most ideal way to buy a house is with 100% down; if that is not an option, you should get no more than a 15-year, fixed rate mortgage with a down payment of at least 10%.
A) Get a 30-year mortgage with a 20% down payment.
Which of the following best summarizes how the use of a credit card for purchases instead of cash can change oneʹs spending behavior?
Spending behavior does not matter as long as you pay off the credit card balance each month.
Studies show that there is no change in spending behavior whether a person uses cash or credit.
People typically spend less when they know that they are earning credit card ʺrewards.ʺ
Studies show that consumers typically spend more when using credit as opposed to cash purchases.
Which of the following is not recommended when you are cash-flowing your college education?
Live on a zero-based budget.
Attend an out-of-state school.
Work and save money over the summer months.
Make sure you have an emergency fund.
The average repayment period for a student loan is:
2 years
5 years
20 years
10 years
Four common marketing tactics are:
Repetition, buyerʹs remorse, product positioning, significant purchase
Competition, financing, opportunity cost, personal selling
Branding, personal selling, opportunity cost, financing
Personal selling, financing, repetition, product positioning
Which of the following should you consider when making a significant purchase?
your buying motives
if you can't pay cash don't buy it
opportunity cost
all of the above
Which of the following does not describe why using cash is a great bargaining tool?
Cash is easy to carry
Cash is emotional
Cash is visual
Cash is immediate
Which of the following is not recommended if you are trying to make your money go further?
Buying clothing at end of the year sales
Buying only name-brand products
Negotiating for a lower price
Comparison shopping
Which of the following statements is false?
Negotiation involves a conversation of back-and-forth, give-and-take.
If negotiation is done correctly, it will end up being a win -win deal.
Just asking for a great deal doesnʹt always mean that youʹll get one.
A great deal often just happens by accident.
