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WorksheetsPersonal Finance Final
Total questions: 50
Worksheet time: 1hrs 24mins
When it comes to managing money, success is about ___________% knowledge ad _____________% behavior
60,40
50, 50
20, 80
Which of the following best explains why students should learn about personal finance?
Learning to manage money will help you achieve a profitable career
Learning to manage money at this stage can eliminate financial mistakes and promote huge financial benefits for the future
Personal finance skills are better learned through trial and error
When it comes to personal finance, the math is easy. What is challenging is managing your___________.
Bank account
Behavior
Friends
Income
Which of the following statements best explains why income alone does not determine wealth?
How much money a person makes does not dictate his or her spending and saving behavior.
Only people who are natural savers can become wealthy
Income alone does determine a person's wealth
Most Americans avoid the use of credit when it comes to buying big-ticket items like a car, or furniture for their homes
True
False
When developing a personal finance plan, one of the first things you should do is assess your current financial situation. This includes your income, assets and liabilities.
True
False
At your age, a fully funded emergency fund should be:
$500
$5000
$100
Which of the following is not one of the three basic reasons for saving money?
Build wealth
Have money to lend to friends
Emergency fund
Large purchases
Which of these is not a key to saving money?
Discipline
Your Income
Making saving a habit and a priority
Which of the following is a reason that people do not save money?
They lack discipline
They lack focus
They do not live on a budget
All of the above
Your income greatly affects your savings habits
True
False
You should keep your emergency fund in the same account as your spending money.
True
False
The first thing you should save for is your retirement fund
True
False
Which of the following is a consequence of overdrawing your checking account?
Over draft fees from your bank.
Stress from money mismanagement
Bounced check fee from a store
All of the above
Doing a budget does not:
Make your money go further
Show if you are overspending in an area
Make over spending more likely
A monthly budget should include:
Fixed expenses
Variable Expenses
Discrectionary Expenses
All of the above
Groceries are a:
Fixed Expense
Variable Expense
Rent is a:
Fixed expense
Variable expense
Intermittent expense
Which of the following account records would have the most current balance?
Your monthly bank statement
Your own account register
Account balance statement from the ATM machine
All of the above
Which is NOT a factor in determining a FICO score?
Paying cash for all purchases
Using credit cards
Taking out a car loan
Taking out a home loan
Which of the following is NOT a good idea for getting out of debt?
Borrow money from your parents.
Quit borrowing money
Get a part time job or work over time
Sell something
Which of the following is not a need?
Eating out
Utilites
Housing
Food
Never buy something that you fully do not understand
True
False
Using cash gives you more bargaining power than credit
True
False
Which is a good investment option?
Futures
Mutual funds
Gold
A reason that people need to save and invest is to:
Be able to get anything that they want
Enable their money to make more money
Increase the money supply
To ensure that some of your retirement savings will not be subject to income tax upon withdrawal, you would contribute to:
A Roth IRA
A 401K
An Annuity
When buying and selling investments, you should not
Learn the different types of investments
Switch your investment strategy often
Set your investment goals and consider a time frame
Single stocks and mutual funds have the same amount of risk
True
False
You should start investing as soon as you have your college education funded
True
False
Saving and investing have nothing to do with the amount of money that you make.
True
False
A mutual fund portfolio that is properly diversified will have all investment dollars located in just one of four different classes of financial assets
True
False
A life insurance policy for a specific period of time is called:
Whole life
Universal
Term
The purpose of insurance is to:
Transfer financial risk
Provide an investment opportunity
Develop a savings plan
You are involved in a two car accident. You are at fault. The other driver is injured. What type of insurance covers the medical expenses of the victim?
Liability
Collision
Comprehensive
Uninsured motorist
Renters insurance is not necessary, if you do not have a lot of expensive things
True
False
The Internal Revenue Service (IRS) is the federal government agency responsible for:
Filling out your tax forms
Writing tax laws
Tax collection and tax law enforcement
What is the day that income taxes are due in the United States?
April 1
January 1
April 15
June 15
This tax pays for benefits that workers and families receive for either Social Security or Medicare.
Federal Insurance Contribution Act (FICA)
Excise tax
Sales tax
What is a fee paid by a borrower to the lender for the use of borrowed money?
Interest
loan
debt
credit
What is a debit card?
Money that is loaned from the bank and put on a card for you to spend.
Money that is used to buy a car
Money that is barrowed from your parents
Money that comes from you checking account and is dispersed by a card.
The number-one cause of divorce in North America today is stress and disagreements over money.
Maybe
False
True
Both A & B
You should co-sign a loan if:
A friend needs to money to buy a car
Your girlfriend is going to dump you unless to do so
Your son or daughter needs it to buy a house
You should never cosign a loan
Teens are the number one target of credit card companies today.
False
True
No, adults from 21 to 35
All of the above
What is a mutual fund?
When you buy 2 stocks in the Pepsi Company
Money saved for your emergency fund
A copy of each check you write
Pool of money managed by and investment company and put into many companies
What is the difference between gross pay and net pay?
Net pay describes your pay after deductions, gross pay is before
Gross pay describes your pay after deductions; net pay is before
Gross and net pay are the same
none of the above
When a company hires you, you fill out a ____ form. The information on this form is the basis for determining how much income tax should be withheld from your paycheck
W-4
W-2
1040EZ
1099
