WorksheetsPersonal Finance Post-Test Review 1
Total questions: 15
Worksheet time: 9mins
Budgets are created to help people manage their money and to help not overspend. Based on the figures below, determine if Pat is living within his/her means or overspending and by how much?
Monthly Expenses and Income
Mortgage=$1,200
Food=$400
Auto Insurance=$80
Car loan=$250
Entertainment=$40
Utilities=$120
Salary=$2500
Yes, he is living within his means. He has a balance of $4590 at months end.
No, he is not living within his means. He has a balance of -$410 at months end.
Yes, he is living within his means. He has a balance of $410 at months end.
No, he is not living within his means. He has a balance of -$2,190
Calculate Pat's WAGE Pay
$15/hour, 40 hours/week, Paid every two weeks
$600
$2400
$1200
I don't know
Calculate Pat's SALARIED Income
$40,000/year, 40 hours/week, Paid every two weeks
$1538.46
$1666.67
$3846.00
Payroll Withholdings include money deducted from your pay, in the form of "taxes". Taxes are used to raise funds for _____.
private businesses, personal property and personal income.
police work, libraries and roads.
the local food pantry, animal shelters and the big brother/big sisters clubs of America.
Which of the expenses below are "discretionary" expenses?
Monthly Expenses and Income
Mortgage=$1,200
Food=$400
Auto Insurance=$80
Car loan=$250
Entertainment=$40
Utilities=$120
Salary=$2500
Mortgage
Car loan
Entertainment
Utilities
When budgeting, if at the end of the month you have a surplus of money, you should do what?
buy a new outfit.
buy a new car.
save it.
go out to dinner.
Why is it difficult to maintain a budget?
It's hard to collect receipts and track expenses each month.
I have too little money.
I have too many expenses.
I don't know how to use excel.
The tax brackets ____.
are used to pay for public services.
are a financial charge imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures.
describe where your money will be used.
show you the tax rate you will pay on each portion of your income.
What tax applies to money made on investments and other personal property?
Capital gains tax
IRS tax
Sales tax
Excise tax
A financial reserve is to be used when ______.
you don't have money to go to the movies.
you want to buy an expensive item.
you lose your job and can't pay your non-discretionary expenses.
you want to invest in an alternative investment like collecting artwork.
I would use Installment Lending when _____.
I want to purchase a set of appliances worth $1200. I will agree to pay the creditor back in full within 60 days. If I don't, I will then have to pay 15% interest on that purchase.
I want to buy groceries for my family and pay cash.
I want to purchase a house worth $120,000 and I only have a down payment of $5000. I will agree to pay 3% interest and will pay the loan off in 15 years.
I want to purchase many items (groceries, clothing, entertainment, gas, etc) over an extended period of time. I don't want the credit to expire but instead, once I pay off the balance, I want the credit amount to revolve.
Credit cards are a form of Revolving Credit.
True
False
I want to EARN simple interest.
True
False
I want to EARN Compound Interest.
True
False
When budgeting, you would consider your Gross Pay, not the Net Pay.
True
False
