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WorksheetsPersonal Finance Review- Kane, Pinto, Hilferty
Total questions: 53
Worksheet time: 27mins
What is personal finance?
Future planning of money that takes into account investments and spending
The financial management to budget, save, and spend monetary resources right now
Financial planning so that one does not go broke
Education on how to balance a checkbook
What is the difference between a short term goal and a long term goal?
Short term goal= up to 1 year; long term goal= greater than 5 years
Short term goal= up to 2 years; long term goal= up to 5 years
Short term goal= up to 5 years; long term goal= greater than 10 years
Short term goal= less than 1 year; long term goal= greater than 7 years
What athlete is most likely to go broke?
Tennis
Basketball
Baseball
Football
What is the difference between a job and a career?
A job is a long term profession that requires high education levels; A career is a short term job that does not require high education levels
A job is a task you perform for minimum wage and is usually done by teenagers; A career is a task you perform for a salary and is for adults
A job is a long term profession for teenagers and has a high paying salary; A career is a short term profession for adults to support their basic needs
A job is any work you perform to earn money to support basic needs that is usually short term; A career is a long term professional job that caters to your personal interests and requires higher education
What is disposable income?
Income that you take home before taxes are withdrawn
The amount of income that was taken out for taxes and other charges
Income that remains after deducting taxes and other mandatory charges
Bonus income that is added onto your paycheck during the holidays
True or False… Implicit Cost requires a money payment?
True
False
What is the explicit cost?
The cost of an opportunity lost.Requires a money purchase; monetary cost
Does not require a money purchase; money that could’ve been earned
Requires a money purchase; monetary cost
Cost for student aid
What is the opportunity cost?
Includes both implicit and explicit costs.
Includes implicit cost only
Includes explicit cost only
Includes neither implicit or explicit costs
How is education and poverty related?
Higher education = higher poverty rate
Lower education = lower poverty rate
Higher education = lower poverty rate
They aren’t related
What is a form completed by current and prospective college students in the United States to determine their eligibility for student financial aid?
Common App
IRS
Tax Return
FAFSA
What is a paycheck?
a paper check issued by employers as a way to pay employees
A paper check issued by employees as a way to pay employers
A re-loadable card where an employee can access their salary
electronic transfer of an employee’s salary directly into their bank account
What is a method of payment in which an employer puts money directly into an employee’s bank account?
Paycheck
Payroll card
Direct deposit
Indirect deposit
What is the difference between Gross Pay and Net Pay?
Gross pay= pay after deductions; net pay= pay before deductions
Gross pay= total pay before deductions; net pay= pay after deductions
Gross pay= bonus; net pay= total of employee benefits
There is no difference
What is a contractor?
A full time employee who earns a salary
A part time employee who earns an hourly wage
A person hired to provide material or perform work
Which of the following is NOT an advantage of having a salary?
Guaranteed amount on paycheck
Amount of hours you work does not affect how much you are paid
Possibility of overtime
Can have a flexible or regular schedule
What is FICA ?
a federal payroll contribution for both employers and employees
federal health insurance for people 65 and older & certain young people with disabilities
the amount of money you pay for insurance
pre-tax deductions put into a retirement account and can be withdrawn tax free during retirement
What is it called when people who work for a company get a share of the profits?
Bonus
Commission
Tips
Profit-sharing
Taxes imposed on citizens of a particular state by their state government are…
Local income taxes
State income taxes
Federal income taxes
Property Tax
What is a fee paid based on a percentage of a sale?
Commission
Tips
Bonus
Profit Sharing
How much is overtime typically paid?
3x your hourly wage
2.5x your hourly wage
1.5x your hourly wage
2x your hourly wage
Which of the following is paid for by tax dollars?
Improvements to bridges
Teacher’s salaries
Unemployment
All of the above
Which of the following reduces an individual’s taxable income?
Contributions to a 401k
The birth of a new child
Mortgage and taxes paid
All of the above
Which government is a sales tax administered by?
Federal
Municipal
State
Local
The tax on money earned from a job is called...
Income tax
Revenue tax
Property tax
Sales tax
What tax system do we have in America?
Progressive
Marginal
Regressive
Flat
What do local taxes primarily spend their tax dollars on?
Transportation
Pensions
Education
Healthcare
Which of the following are taxable sources of income?
Bonuses
Tips
Profits
All of the above
Example of tax dollars spend on your way to school…
Road signs
Traffic lights
Parks
All of the above
What is the purpose of local social welfare programs?
To aid families and individuals locally
To give the state money
To fundraise
To start a nonprofit
What is tracking, investing, budgeting, banking, and evaluating taxes as a strategy of controlling your money?
Money management
Budgeting
Financial discipline
Measuring Progress
What is a fixed expense?
A cost that changes depending on your sales activity and isn’t always mandatory
A cost that remains the same and is mandatory to pay
An unexpected expense that decreases your budget
A mistake in budgeting that needs to be fixed
How much money should be in an emergency fund?
3 to 6 month’s salary
1 year’s expenses
1 year’s salary
3 to 6 month’s expenses
What occurs when expenses exceed your income?
Budget deficit
Budget surplus
Balance Budget
Budget Variance
Which is NOT a variable expense?
Rent
Bills
Transportation
Food
What is income?
Any outflow of cash
Any money received
Only money you earn
None of the above
What is net worth?
A person’s overall wealth
Your total income
All your debt
All your physical assets
What is it called when you remove funds from your bank account?
Deposit
Banking
Loans
Withdraw
What is a mortgage?
A loan paid back for real estate with interest
A credit bill
The initial deposit for estate
The payment for real estate agents
Why do people use banks?
Safety of their money
To have a savings account
For the ability to have loans
All of the above
What is the difference between a secured and unsecured loan?
A secured loan is the only one with a bank
A secured loan requires collateral
A unsecured loan requires collateral
A secured loan is based off of credit
What is collateral?
A credit card loan
A real estate payment
The pledge of assets if a loan isn’t paid
Given if you have good credit
What is unbanked?
People who rely on financial institutions
People who aren't affiliated with banks
People who use banks
People who have a checking account, but no savings
What is underbanked?
People who rely on financial institutions
People who don’t use banks
People who work at banks
People who only have a savings account
What is a loan?
A payment of real estate
Money given to be paid back plus interest
Money held by banks
The grocery bills
How do you balance a checkbook?
Create a new balance by adding deposits and subtracting withdrawals
Add withdraws to balance
Don’t ;)
Only balance with deposits
What is an annual percentage rate?
Interest rate of a purchase
Rate on credit interest
Bank loans
Bills
What is an investment?
Putting money into an account to gain interest
The action or process of investing money for profit
When you buy stock in a company
Making a giant purchase
What is simple interest?
Method of calculating the interest charge on a bond
Method of calculating the interest charge on a loan
Method of calculating the interest charge on a stock
None of the above
What is the Rule of 72?
It is to estimate how much money you will make off an investment in 72 weeks
It is to find out how many years it will take to triple your money
It is the amount of money you will lose after 72 days in the stock market
It is to estimate the number of years it will take to double invested money
What is a bond?
A loan from an investor to a borrower
The interest rate on a given investment
A loan given for the purpose of education
The money you earn from buying stocks
What is a stock?
Buying a part of the company to gain money
All of the shares into which ownership of a corporation is divided
A person who works on Wall Street
A type of loan that you can get to buy a company
What is a mutual fund?
A joint bank account that couples open when they get married
An account that many investors use to put money into so that it can gain interest
A professionally managed investment fund that pools money from many investors to purchase securities
Sharing funds with someone, ex: letting your friend borrow five dollars
What is a credit score?
The ratio of your credit card balances to your credit limit, and the relation of your loan balances to the original loan amount
The debt that you owe the bank when paying back your credit card bill
Another term used to describe the balance one has on their credit card
It is when you keep track of how many things you buy with your credit card
