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Personal Finance Wrap Up

Total questions: 26

Worksheet time: 15mins

Name
Class
Date
1.

What are some benefits to starting a savings account early?

a)

you can earn interest on money saved

b)

putting money aside will help avoid spending it on something else

c)

setting a savings goal will help

d)

all of the above

2.
This type of interest "creates a mathematical explosion," and it can make you wealthy over time, or keep you in debt for a long time.
a)
compound
b)
sinking
c)
annual
3.
401(k), IRA, and Roth IRA are all examples of a __________ account.
a)
Retirement
b)
College Savings
c)
Low Interest
d)
Stock
4.
What does CD stand for when talking about investments?
a)
Calculated Dividend
b)
Certificate of Deposit
c)
Central Dollar
d)
Current Deposit
5.
A mutual fund allows investments to be ___________.
a)
Secured
b)
Guaranteed
c)
Diversified
d)
Minimal
6.
This type of retirement account offered by employers to their employees allows them to set aside tax-deferred income.  Sometimes employers will even match the employee contribution up to a certain amount.
a)
mutual fund
b)
401(k)
c)
Roth IRA
d)
savings
7.
This term refers to the original amount of a loan OR the original amount of money invested. 
a)
Principal
b)
Interest
c)
Rebate
d)
Fixed Rate
8.
This is an obligation of repayment, usually including principal plus interest; any time you owe someone money.
a)
compound interest
b)
emergency fund
c)
APR
d)
debt
9.
Term that applies to the ability to buy something now and pay for it later over a period of time (usually with having to pay a finance charge and/or the addition of interest). 
a)
Savings
b)
Profit
c)
Budgeting
d)
Credit
10.

Which budget item will most likely take up the largest percentage of your income at 25-30%?

a)

transportation

b)

housing

c)

groceries

d)

saving/investing

11.

What is a budget?

a)

A plan for how money will not be used

b)

A plan for how money will be used

c)

The amount you spend

d)

The amount you save

12.

What are stocks?

a)

sharing something

b)

An ownership share in a company

c)

A graph with pointy arrows that are red and green

13.

What is an emergency fund?

a)

A savings account set aside for unexpected situations.

b)

A way to invest for retirement.

c)

Something most people don't need, because emergencies are rare.

d)

An investment account that can grow over time.

14.

Why should we INVEST instead of SAVE for retirement?

a)

Investing money can make it grow in the long term.

b)

Investing is safer than saving.

c)

Saving is too risky for retirement.

d)

Investing is more fun than saving.

15.

What is insurance?

a)

A service purchased to protect assets and income against financial loss.

b)

A type of savings account where you put aside money for emergencies.

c)

A type of investment account where you can buy shares of stock.

d)

A kind of taxes charged by the government.

16.

What type of account allows for tax-advantaged savings and investments for college?

a)

A 529 College Savings Plan

b)

A 418 University Investment Account

c)

A checking account at your local bank

d)

A brokerage account with your preferred investment firm

e)

A savings account at a large national bank

17.
A card that uses money directly from your bank account
a)
Debit Card 
b)
Credit Card 
c)
Pokemon Card 
d)
Baseball Card 
18.
An agreement between a borrower and a lender, where the borrower agrees to repay money with interest over time.
a)
Loan 
b)
Interest 
c)
Income 
d)
Deposit  
19.

Which account type lets you spend your money easier?

a)

savings account

b)

checking account

c)

certificate of deposit

d)

mortgage

20.

Which account type allows you to earn interest?

a)

checking account

b)

credit card

c)

mortgage

d)

certificate of deposit

21.

Which is the correct type of insurance that would be used: David’s mother is killed in an automobile accident. What type of insurance would provide his family financial support to cover the paid and unpaid work his mother performed?

a)

Property and liability

b)

Health

c)

Life

d)

Disability

e)

Workers’ compensation

22.

Which is the correct type of insurance that would be used: Sally is not feeling well so her mother takes her to the doctor. The doctor tells her she has strep throat, gives her medication, and sends her home to recover. What type of insurance would be used in this case?

a)

Property and liability

b)

Health

c)

Life

d)

Disability

e)

Workers’ compensation

23.

Which is the correct type of insurance that would be used: Joey’s father is in a car accident and cannot work. What type of insurance replaces his father’s earnings?

a)

Property and liability

b)

Health

c)

Life

d)

Disability

e)

Workers’ compensation

24.

Liability insurance covers accidental harm that may be caused to other people or property.

a)

True

b)

False

25.

Income before all taxes have been deducted is known as this.

a)

Gross Income

b)

Net Income

26.

Income after taxes have been deducted is known as this.

a)

Gross Income

b)

Net Income