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WorksheetsFinLit Final
Total questions: 48
Worksheet time: 51mins
What is an emergency fund?
A savings account set aside for unexpected situations.
A way to invest for retirement.
Something most people don't need, because emergencies are rare.
An investment account that can grow over time.
A person should have an emergency savings account with at LEAST
3 - 6 months of living expenses
12 - 15 months of living expenses
the person's monthly salary.
triple the amount of the person's annual salary.
What is insurance?
A service purchased to protect assets and income against financial loss.
A type of savings account where you put aside money for emergencies.
A type of investment account where you can buy shares of stock.
A kind of taxes charged by the government.
the amount paid out of pocket by the policy holder before an insurance provider will pay any expenses.
premium
dependent
copay
Deductible
How does investing in the stock market differ from putting money in a savings account at a bank?
You have the opportunity to make more money when you invest compared to what you can earn putting your money in a savings account.
You have less of a chance of losing money when you invest compared with saving.
Investing is less risky than saving
If you want to make a down payment on a car loan within the next 6 months, investing is the best option since you will earn more than a savings account.
The process of self-investment through education, experience, and volunteering
Well-being
Standard of Living
Human Capital
Transferable skills
State of being happy, healthy, and prosperous
Standard of living
Transferable skills
Well-being
Human Capital
What is money made out of?
paper
cotton
trees
Which of the following is NOT a REQUIRED payroll deduction?
FICA (Social Security/Medicare)
State income tax
Federal income tax
Health insurance
Pays monetary benefits to workers who become injured or disabled on the job
Commission
Employee Benefits
Net Income
Workers Compensation
Source of income for workers who have lost their job through no fault of their own
Unemployment Insurance
Workers Compensation
Tax Liability
Commission
his ______ is $320.
Social Security is used to fund income for all of the following EXCEPT:
People with a disability
Children who lose a parent to death
People who lose their job
Retirees
Find the percent of a number:
You ate out a a restaurant and your bill is $25. You should leave a tip of 20%.
How much is your tip????
$6.00
$5.00
$2.50
$4.00
An account at a depository institution where money is kept for easy access and for everyday use
savings
overdraft
certificate of deposit
checking
How can I avoid paying an ATM fee?
Only use ATM’s that are close to my home
Only use ATM’s that are owned by my bank
Avoid using ATM’s after the bank has closed
Avoid using ATM’s all together
Mia is opening her first checking account, and she's trying to decide whether she should sign up for overdraft protection. Which friend's advice is MOST accurate?
Alex says, "If you say "No" to overdraft protection, and you TRY to withdraw more than what's in your account, the bank will contact you to see if you want them to cover it."
Frank says, "Overdraft protection may seem handy if you have an emergency (like needing gas to get to work) but you might pay lots of overdraft fees if you don't keep track of your account closely."
Donnie says, "Yes, you'll have to pay a fee for each overdraft, but you DON'T have to pay the bank back the money you overdrew the account by."
Jordan says, "With overdraft protection, you never have to worry about how much money is in your account."
You are at the checkout counter at the local supermarket, use your debit card to pay for your groceries, and select “DEBIT” when the cashier asks “Debit or credit?” Where does the money for this purchase come from?
It is deducted from your credit card account
Your credit card company provides you with a cash advance to cover the cost
It is deducted directly from your checking account
Your credit card company covers the cost
What is a measure of how well you have handled borrowing money? It tells potential lenders how likely you are to pay your debts (or bills).
credit card
credit report
credit score
loan
Having a bad credit history impacts every one of these items but one. Which is the one item not impacted by bad credit history?
Your ability to rent an apartment or house.
An employer's decision to offer you a job.
The fact that I am a good person.
Your ability to get a car loan or any other type of loan.
Which answer applies to "fine print"?
Fine print is the same size as regular print.
Fine print is usually where virtually all the important information is located.
Fine print is what companies want you to read.
Fine print is always in bold print.
How do values influence how a person spends money and make financial decisions?
If an individual values helping others, he may decide to give money to a church or other charitable groups
All of these are good examples of how values influence how a person spends money
If an individual values technology, he may decide to save money to purchase a new phone instead of waiting for it to go on sale
If a person values spending time with their family, he may decide to save money to go on a family vacation to the beach
Mrs. Goff is the best Financial Literacy teacher I've had. ;)
True
False
Which is an example of "pay yourself first"?
Budgeting the same amount of money each month for entertainment.
Setting aside money from each paycheck to pay a car loan.
Paying the monthly telephone bill electronically from a checking account.
Saving some money from each paycheck before spending any of it.
Which description of the difference between saving and investing is MOST accurate?
r
Saving and investing are the exact same thing
Investing occurs when you put your money in stocks; everything else is saving
If you have less than $10,000 in an account, what you are doing is saving. If you have more than $10,000 in your account, you are investing
Savings accounts provide a stated rate of return that is less risky, while investors do not know what their return will be, making it riskier but could potentially earn more
Each of the following is a way to access money in your checking account EXCEPT...
Swipe a prepaid card to pay for your fast food purchase
Write a check to pay the rent on your apartment
Use your debit card to pay for groceries at a Point-of-Sale (POS) terminal
Take out cash using your debit card at an ATM machine
This is what you have to pay before the insurance company will pay anything
coverage
dues
deductible
policy
Using a digital wallet such as Apple or Android Pay can be safer than using your debit card at a clothing store because…
Using your debit card always generates a paper receipt and using a digital wallet will not
The cashier never sees your name or account number when you use a digital wallet
Digital wallets use cryptocurrency for the transactions rather than American dollars
Debit cards pull from your checking account while digital wallets charge a credit card
Most online financial institutions and businesses will regularly send you emails asking you to update your account information by going to a link in their emails.
True
False
Which of these scenarios is best suited for using automatic online bill pay?
Pay your cell phone bill in full each month a few days before it’s due
Pay for the $35 of gas you budget twice per month to fill up your tank
Pay for the back-to-school shopping you do on your favorite store’s website each August
Repay your best friend the $7 she loaned you for lunch
After being hired at my first job my employer asks for my routing and account number. This can be found
on the bottom of my checks or deposit slips
in my safe deposit box
on my online banking account profile
by calling my mom
Why is understanding a bank's fees particularly important for students or young adults?
Your credit score is heavily dependent on how well you bank
Banking is like insurance; being younger means higher fees
They may have high balances in their account and are therefore likely to overdraft easily
With less banking experience they may incur fees unknowingly
A person-to-person payment app could be used in each of the following scenarios EXCEPT...
Tina pays her neighbor $200 for breaking his window with a softball.
Rafael writes the whole monthly rent check to the landlord, and his roommates Valerie and Carlos pay Rafael for their share of the monthly rent.
Ahmed's soccer coach pays the team's registration fee for a big tournament, and each player then owes him $35 for their share of the registration fee.
Mia pays the delivery driver from Cheesy Pizza Co. for a pizza she orders for her Spanish study group.
How many weeks in a year ?
7
12
26
52
A salary is:
A type of pay that is not taxed
A set amount you get paid each pay period regardless of the number of hours you worked
Hourly rate x number of hours + overtime
Bonus pay for doing a good job
Social Security is used to fund income for all of the following EXCEPT:
Retirees over the age of 62
People with a disability
People who lose their job
Children who lose a parent to death
