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WorksheetsPersonal Finance - Everfi Future Smart
Total questions: 48
Worksheet time: 37mins
Which of the following would be considered a want rather than a need for most people?
Warm clothes in the winter
A place to live
A smartphone
Nutritious food
Select the answer that best describes what an opportunity cost is:
The amount of money you put into savings each year
The trade-off of making one choice and giving up a different choice
The amount of money a business makes every year from sales
The benefit you gain by choosing one option versus another
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
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
Your friend’s parents are worried about going over their budget for the month. Which expense would you suggest is NOT a need?
Rent payment
Car insurance
Cable service
Groceries
If you know the unit prices of two different brands of an item, you are better able to:
Compare the prices of the two brands
Estimate how much of the item you will need
Determine which of the two brands is higher quality
Figure out the discount during a sale on the two items
You received $50 as a birthday gift and chose to spend it on new wallpaper for your room. The opportunity cost of this decision is:
The price of the wallpaper you bought
The other items you could have purchased with your $50
The time you could have spent doing other things
All of these answers
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
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
A ________________ is usually paid on a biweekly or monthly basis for professional employment.
Salary
Stipend
Wage
Benefit
Which of the following is the best reason to use cash for purchases?
Getting more from the ATM is easy to do
Keeping track of how much you have spent is simple
Splitting bills with friends is easier
Losing it won’t be a big deal
What factor has the biggest impact on a credit score?
Having a variety of types of credit
The amount of money you owe on your credit cards
Your history of making payments on time
The number of years that you have used credit responsibly
What is the best strategy to avoid paying interest on your credit cards?
Pay the minimum balance each month
Pay the full balance each month
Have credit cards from two different banks
Make payments online
Which of the following statements is TRUE:
Applying for several lines of credit in a short period of time can help boost a person’s credit score.
Paying off a credit card balance in full can have a negative impact on someone’s credit score.
The longer you use credit responsibly, the higher your credit score.
Low risk borrowers tend to have low credit scores.
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
Which of the following statements is TRUE about payday loans?
They are harder to pay back because of low fees and high interest rates
They are harder to pay back because of high fees and high interest rates
They are easier to pay back because of lower fees and higher interest rates
They are easier to pay back because of lower fees and lower interest rates
Amy's new summer job at the pool will pay her $9 per hour. Which term describes this type of hourly income?
Salary
Stipend
Wage
Benefit
Ashley wants to make a purchase using the money in her checking account. What method of payment should she use to access these funds immediately and directly?
Credit card
Debit card
Direct Deposit
Prepaid Card
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.
If you are trying to reduce the cost of college, which of the following strategies is likely to save you the most money?
Attending an in-state public university
Attending a private college
Purchasing used books
Living in an off-campus apartment
Which of the following is NOT an example of a job skill?
Attending work every day
Working well in groups
Being good with computers
Being creative
Which of the following things should you do first when planning your career?
Apply for as many jobs as possible
Have a mock interview with a family member or friend
Make a list of your job preferences and skills
Sign-up for an internship
The most direct way for Jonathan to gain on-the-job experience and earn money while attending school is to apply for:
Federal financial aid
Scholarships
A work-study program
A private loan
Cynthia writes computer programs for mobile phones and has received five job offers in the last week. This is most likely because:
Demand for computer programmers is high
Supply of computer programmers is high
Demand for computer programmers is low
Demand and supply for computer programmers are equal
Which career is least likely to be impacted by poor economic conditions?
Salesperson
Restaurant Manager
Construction Worker
Nurse
Shannon has been a member of her school’s newspaper club for 2 years and attends writing workshops in her free time. Which career choice should she explore?
Web Content Developer
Museum Curator
Graphic Designer
Business manager
Which career is likely to earn the highest salary?
Hairdresser
Dentist
News Anchor
Flight attendant
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
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
Revenue is:
The amount of money a company pays its employees
The amount of money a company has left over after paying bills
The amount of money a company makes from sales
The amount of taxes a company has to pay
The average price of a gallon of milk increased from $3.00 last year to $3.50 this year. This is most likely due to ______________________.
Inflation
The stock market
Deflation
The market basket
Which interest-bearing account is best for people who won’t need access to their money for several months of longer?
Savings Account
Checking Account
Certificate of Deposit
Credit card
Why would you put money into a savings account?
To make frequent withdrawals at ATM’s
To earn interest on your money
To access the money from this account with personal checks
To easily access money from this account with a debit card
What is the first step you should take when you want to open a savings account?
Go to the bank and fill out an application
Review the different account options that your bank offers
Present your photo ID to the bank representative
Make your initial deposit
A loss is when:
Revenue is greater than expenses
Revenue is less than expenses
Revenue is equal to expenses
None of these
Aaron wants to open a savings account. Which account will grow his money the most?
Account 1 - Interest rate 2%, Interest compounded daily
Account 2 - Interest rate 1%, Interest compounded daily
Account 3 - Interest rate 2%, Interest compounded semi-annually
Account 4 - Interest rate 1%, Interest compounded annually
Your sister is looking for a way to increase the amount of interest she is earning on her savings account. What should she do?
Use the money from her savings account to open a checking account instead
Make monthly withdrawals from her savings account
Switch to a savings account with a lower interest rate
Deposit money into her savings account each month
What is required when opening a checking account?
An Initial Deposit
A Salary
A Credit Card
A copy of your last paycheck
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
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 might be one reason why a stock becomes more valuable over time?
The industry is growing
The company is poorly managed
There is little demand for the product
The industry is getting smaller
Which of the following best describes deflation?
A decrease in the cost of goods and services
An increase in the cost of goods and service
A decrease in purchases of a good or service
An increase in purchases of a good or service
When deciding how to invest your money, which of the following is LEAST important to know?
Whether or not deposits can be made online
When you will need to use the money
The expected rate of return on your investment
How risky the investment is
________ are loans to a company or government for a set amount of time. They are considered low-risk investments.
Stocks
Bonds
Mutual funds
Deposits
A _______ is a small piece of ownership in a company.
Stock
Bond
Mutual Fund
Derivative
In addition to paying $100 per month for health insurance, Janine is responsible for paying her first $500 medical bills every year before her insurance covers any costs. The $500 Janine must pay is called the:
Premium
Deductible
Copay
Annual out-of-pocket maximum
Someone is retiring next year. What would be an appropriate amount of risk to take with their investments?
Highest risk, highest growth
Medium risk, medium growth
Lower risk, lower growth
No risk. Just savings accounts
Over time the average rate of return on stocks is:
Less than 2%
3%
4%
More than 5%
