WorksheetsPersonal Finance Final
Total questions: 45
Worksheet time: 30mins
Prior to the 1970’s, debt was something most Americans were ashamed of. (PF UC)
True
False
A lot of people you think “look” wealthy are broke and in debt.(PF UC)
True
False
Personal finance is ____% behavior and ____% knowledge. (PF FDM)
50, 50
80, 20
20, 80
1, 99
In America, being “normal” is ______.(PF UC)
wealthy
broke
The reason debt has become a problem in America is because(PF UC)
loaning money became profitable for banks and other businesses
Americans are forced to get loans.
We are bombarded with marketing ads that (PF BGS)
push us to buy things
make us feel like a want is a need
are everywhere
All of these
We are told that debt is normal. It has become acceptable in or culture to use credit to buy ___________________. (PF UC)
Clothes
Jewelry
Food
EVERYTHING
Personal financial success is primarily the result of: (PF FDM)
Managing your money behavior
Winning the lottery
Welfare and unemployment programs
Inheriting money from your relatives
Making more money
Your income determines your wealth. (PF I)
True
False
Which of the following is a consequence of spending more than you make? (PF FDM)
Missed opportunities to save and invest
Stress
A cycle of debt
All of these
The widespread financial insecurity of Americans is primarily because: (PF S)
Americans have low incomes.
Americans don't save and they spend more than they make.
Interest rates in America are low.
Most Americans save a high proportion of their income.
When it comes to personal finance, the math is easy, What's challenging is managing your (PF FDM)
Behavior
Income
Friends
Bank account
The benefit of diversification in your investments is: (PF FI)
Reduced risk
Reduced tax liability
Having a portfolio
Increased risk
A measurement of the total dollar value of a person’s or business’ assets minus liabilities is called: (PF I)
Net Worth
Wealth
Earnings
Income
The First Foundation is: (PF FDM)
Get out of debt
Pay cash for a car
Save a $500 emergency fund
Build wealth and give
Which of the following would be a good reason to use money out of your emergency fund? (PF FDM)
I need a vacation at the beach.
The jeans that I really want are on sale this week, but I don’t have enough money on hand to get them.
The transmission went out in my car.
My friend needs to borrow money from me so that she can go the concert with us this weekend.
Which of the following allows invested money to grow over time? (PF FI)
Compound Interest
Premium payments
Taxes
Inflation
A plan for spending is called a(n): (PF FDM)
Checking Account
Economy
Scarcity
Budget
Car loans are just a way of life. You will always have a car payment. (PF UC)
True
False
The FICO score measures all of the following except: (PF UC)
Debt history
Savings account balance
Types of debt
New debt
Which of the following describes the best way to buy a car? (PF FDM)
Ask your parents to borrow money for the purchase
Save up and pay cash for a used car in your price range
Save up a nice down payment and finance the remaining cost of the car
Allow your grandparents to cosign your loan for a new car
A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements (PF UC)
Grant
Scholarship
Which of the following is NOT a good option when it comes to paying for your education? (PF UC)
Plan ahead
Fill out the FAFSA
Ask your parents to take out a loan
Get a part-time job
A four-year degree is necessary regardless of which career you're entering. (PF I)
True
False
Which of the following could be a negative consequence of taking out student loans? (PF UC)
Not having the freedom to be a stay-at-home parent because of student loan payments.
Having to delay investing and saving for your future because of student loan payments.
Not having flexibility in your career options because of student loan payments.
All of the above.
A form of federal or state financial aid that does not need to be repaid; usually given to students who demonstrate financial need (PF UC)
Grant
Scholarship
Which of the following things cannot be done with a debit card but can be done with a credit card? (PF UC)
Go into debt
Rent a car
Purchase something online
Purchase an airline ticket
Which of the following is a sign that your identity may have been stolen? (PF PI)
A call from a collection agency about a debt you didnʹt incur
Bank and billing statements donʹt arrive on time
Your credit report shows accounts you didnʹt open
All of the above
If you are a victim of identity theft, you are only responsible for paying back half of the debt. (PF PI)
True
False
Co-signing a loan is a good way to help a friend or relative. (PF UC)
True
False
A long-term rental agreement on a car; a form of secured long-term debt (PF UC)
rental agreement
loan
lease
mortgage loan
Doing a budget does not (PF BGS)
Show if you are overspending in an area
make overspending more likely
remove guiltand shame sometimes associated with a purchase
make your money go further
Rent is a (PF BGS)
fixed expense
variable expense
discretionary expense
intermittent expense
The zero-based budget is the best method of budgeting because (PF BGS)
The type of budget is less complicated than other types of budgets
A zero-based budget allows less money for wants
Sticking to a zero-based budget requires less discipline
The zero-based budget ensures that every dollar you make is assigned a specific purpose
The number-one cause of divorce in North America today is stress and disagreement over money. (PF FDM)
True
False
Series of envelopes that are divided into categories and are used to store cash for planned monthly expenses (PF BGS)
envelope system
check carbon
cash flow plan
budget
When applying for a job, you should: (PF I)
Follow up with the employer
Present yourself well
Provide a resume and cover letter
All of the above
The amount of income left after taxes have been deducted (PF I)
Gross pay
Net pay
An amount of money you spend, that causes pain to part with (usually about $300 or so) (PF FDM)
branding
significant purchase
marketing
Refers to the public's ability to recall and recognize a brand by its logo, jingles, packaging, etc.. (PF BGS)
brand recognition
marketing
significant purchase
Refers to the financial opportunity that is given up because you choose to do something else with money. (PF FDM)
opportunity cost
buyers remorse
significant purchase
Feeling regret or concern after making a large purchase. (PF FDM)
buyers remorse
opportunity cost
financing
Understand and use "____-____ power." (PF BGS)
good, bad
good enough
walk away
"That's not ____ ______." (PF BGS)
take away
walk away
good enough
Use the "If I" ____-____ technique. (PF BGS)
walk away
take away
good, bad
