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WorksheetsPersonal Finance Final Study Guide
Total questions: 52
Worksheet time: 26mins
True/False: If your boyfriend cosigns on a credit card with you and he doesn't make the payments, it doesn't affect your credit.
True
False
True/False: People with credit cards spend less than people who don't have credit cards
True
False
What is an advantage to signing up for a credit card at a young age?
You spend less money
You save money on interest
It starts building a credit history early
There are very low fees
Which of these should you do before signing up for a loan? (choose all that apply)
Do research on all available options
Choose the option your parents use
Read any fine print
Ask questions to ensure you understand the terms of the loan
Which one deducts from your bank account?
debit card
credit card
charge card
calling card
What should you do last when making a big decision?
Identify alternatives
Carry out the decisions
Evaluate your decision
Hide in a hole
If you receive a really large tax refund, what should you do?
You should lower your withholding allowance on your W4
You should raise your withholding allowance on your W4
You should get married and have twins before the end of next year so you owe even less in taxes
You should move to Switzerland so you pay more in taxes
What's the *best* way to start saving?
Ask if things are a need or want before you buy it
Stop buying food until you have more saved up
Automatically put a set amount from your paycheck into savings each pay period
Stop making student loan payments and save the money instead
True or False: You should use a debit card for online shopping
True
False
What should you do when you write a check? (select all that apply)
Make sure you write in the correct amount
Watch your account to make sure it's cashed for the proper amount
Leave the "to" line blank
Sign it
Which type of card offers your more protection in case of theft?
debit card
credit card
What are things you can do to prevent identity theft? (select all that apply)
Use the same password for all sites
Use complex passwords
Encrypt your hard drive on your laptop
Don't use public wifi for anything confidential
Don't take the time to do updates on your phone or computer
True or False: Car insurance covers medical bills from accidents as well as car damage
True
False
What's the biggest difference between saving and investing?
Saving is easier to do
Investing makes more money
Savings makes more money
Investing has inherent risk
What is a budget?
A tool for only people without a lot of money
A plan for saving and spending your money
A statement of all of your assets
A set of restrictions and rules
True or False: If you pay more for your undergrad degree, it means you'll make more money after college.
True
False
What are ways you could make more money investing in the stock market? (select all that apply)
Sell your shares when the prices are higher
Use a broker with low fees
Get higher interest rates
Invest in companies with higher dividend payouts
True or False: The longer the term of the loan, the higher the interest rate
True
False
What should you do when you're looking for a job? (select all that apply)
Post tons of pictures online of you partying
Update your LinkedIn profile
Update your resume
Avoid people you know who work in the industry so you don't sound conceited
Write thank you emails after your interview
True or False: It's the bank's job only to make sure you don't have fraudulent charges on your account
True
False
What is the definition of an insurance deductible?
The amount you pay each month
The amount you're paid in case of a claim
The portion you must pay before the insurance company contributes
The amount you pay when you go to the doctor
What are good reasons to contribute to your employer-sponsored 401(k) account? (select all that apply)
If your company offers matching, it's like getting free money
You get a bigger tax refund
You learn to live on less because the money is taken out of your paycheck before you see it
It reduces your AGI to pay into your 401(k)
What city probably has a higher cost of living?
San Francisco, CA
Rockford, IL
Checking account usually have ------ interest rates, so it is -------that you care about them
very low, unimportant
very high, important
very low, important
very high, unimportant
True or False: When you file your taxes, you can decide how your tax money is spent
True
False
What are all the things you pay taxes on? (select all that apply)
Income from a job
Investment gains
Money you win from gambling
The value of real estate you own
FICA taxes go toward...
roads
schools
social security and medicare
state retirement funds
True or False: Young people have the lowest car insurance rates
True
False
Which type of car insurance covers car damage, property damage, and medical bills?
liability
collision
comprehensive
How much money is recommended that you have saved up in an emergency fund?
1 month of income
3-6 months of income
12 months of income
2 years of income
Which tax form do you fill out as you get hired?
W2
W4
1040
Schedule C
Net pay is...
The amount of money you make before taxes
The amount of money you make after taxes and other deductions
The amount of money you make before overtime
Which investment opportunity represents a diversified portfolio?
An investment in an index fund
Buying 1000 shares of Google
Putting all of your money into savings
Buying 1000 different Pokemon cards
What does an introductory interest rate on a credit card do?
Get people to sign up, and then they raise their interest rate after a time
Stay low always!
Offers good benefits
What's the best way to pay for college?
Scholarships or grants
Federal loans
Private loans
Which will ensure you pay no credit card interest?
Paying lots of overdraft fees
Carrying a high balance
Negotiating with your credit card company
Paying off your balance each month
Which tax form do you receive from your employer by Jan 31?
W2
W4
1040
Schedule C
True or False: Credit card interest is one form of credit with a very high interest rate
True
False
You have a net pay of $3000 a month. You've budgeted $300 for food, $400 for student loan payments, $1000 for housing, and $300 for utilities. What is your end result?
$1000 budget surplus
$1000 budget deficit
$2000 budget surplus
$2000 budget deficit
True or False: If you have direct deposit, do you get a pay stub?
True
False
What are ways to increase your credit score? (select all that apply)
Pay all of your bills on time
Close all of your credit cards
Never use any form of credit
Carry a credit card balance of less than 30% of your credit limit
True or False: Bankruptcy gives you a "clean slate" of credit
True
False
Which investment is most likely to outpace inflation?
Savings accounts
Treasury bonds
Index funds
Cash
What is life insurance used for?
Help your dependents maintain a standard of living after you pass
Pay your parents for the life they gave you
Pay you an income if you can't work
Save money for old people
High deductible health insurance plans are good for...
Young adults who don't go to the doctor much
Families with multiple young children
Elderly, retired couples
People with chronic illness
True or False: the main purpose of a resume is to get you an interview
True
False
What does renter's insurance do?
Protect your car
Reduce your rent
Protect your personal property from damage
Allow you to go to the doctor for a low cost
True or False: Compound interest yields more than simple interest
True
False
True or False: Higher deductible plans have higher premiums
True
False
True or False: Rent-to-own places are a great place to get expensive products for a low price. You pay little in interest, and you get a great deal!
True
False
What do you submit to qualify for federal financial aid?
ACT
FAFSA
FAINA
SAT
True or False: Credit card companies have the right to change their APR month-by-month
True
False
