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WorksheetsMoney Matters Final
Total questions: 140
Worksheet time: 1hrs 10mins
It's okay to not understand all the specifics of your financial aid before accepting the money
True
False
People who are struggling with money often turn to alternative financial services like payday loans, but these services actually end up causing them to lose money.
True
False
Scholarships are a great way to fund your education because you don't have to . . .
Write an essay
Pay them back
Be a student
Apply for them
You can save thousands of dollars by spending the ____________ first at a(n) ____________ .
Part of your tuition; traditional four-year school
Two years; local community college
Year; out-of-state school
Two years; name-brand school
A debit card linked with your checking account is a good option for regular spending.
True
False
To stay extra focused on your debt-free degree goal, you will need to avoid . . .
A college degree
Student loans
All types of financial aid
The FAFSA
What's a better question to ask instead of, "Where do I want to go to college?"
"Where do I want to live?"
"Do I want to go to college?"
"How do I get into college?"
"What do I want to do for a career?"
Student loans are a type of "good" debt
True
False
With certificates of deposit (CDs), you have to pay a penalty for ___________________.
Depositing money into the account
Creating a savings account
Using an ATM
Withdrawing your money early
A two-year degree with specialized training, a flexible schedule, and lower educational costs is called a(n) _______________________.
Graduate degree
Bachelor's degree
Community college degree
Associate degree
Most students don't consider that they'll end up paying far more than the original amount they borrowed on their student loans because of ________________.
Higher income
Interest rates
Monthly payments
The debt snowball
Most employers care more that you're educated in your field than they care about . . .
What college you went to
Your work ethic
If you're good at your job
Your future career plans
Credit Unions differ from retail banks in that they typically require membership based on specific criteria.
True
False
A great way to earn extra money while also sharpening your time-management skills is to . . .
Apply for financial aid
Pay cash for college
Find your dream job
Work a part-time job
______________________ typically take(s) less than two years to complete, teach you the skills you need for that career, and is/are often tied to that region's employment needs.
Military training
Online courses
On-the-job training
Trade and vocational schools
Be careful what you_________________ , since most schools keep an eye out for good __________ .
Say in your interview; communicators
Post on social media; behavior
Do for work; work ethic
Budget for; money sense
Ask yourself, "Do I need this ____________for my_____________ ?" before you start applying to schools
Grant; job
Degree; career
Career; college
Loan; future
Balancing your checking account is a lot like working on your budget because . . .
They both involve money
They both lose you money in the long run
They both get easier and build money confidence the more you do them
They're not alike at all
In-state college tuition is almost always a cheaper option than out-of-state colleges.
True
False
It takes the average person_________ to pay off their student loan debt.
20 years
2 years
5 years
10 years
The typical student loan payment is between $200 and $300 per _________________.
Month
Day
Semester
Year
Since federal funding is often awarded on a first-come, first-served basis, you'll be more likely to get financial help by filling out your FAFSA as soon as possible.
True
False
What is The Fourth Foundation?
Build wealth and give.
Save a $500 emergency fund.
Pay cash for your car.
Pay cash for college.
If you see a charge you don't recognize, you should report it to your bank immediately.
True
False
Many high schoolers get so caught up in the idea of the college experience that they don't think critically about . . .
Their high school GPA
What requirements they need to get into college
Their dream job
How their college choice will affect their financial future
Private student loans typically have a higher interest rate than federal student loans
True
False
Your emergency fund should go in your checking account, NOT a money market account
True
False
To decide if you're passionate about something, consider . . .
Enlisting in the military
Getting certified in it
Going to school for it
Volunteering in that field first
FAFSA is the federal application required to . . .
Do a work-study program
Get a part-time job your first semester
Get into college
Receive financial aid
You can fund your education by finding the right mix of _______________ , ________________, and _____________________ .
Work; loans; cash
Scholarships; trust funds; federal aid
Cash; loans; grants
Grants; scholarships; work
The first decision you need to make in order to avoid going into debt with student loans is . . .
Have a savings account
Create a budget
Take debt off the table
Find a good job
Overdrafting your account is a sign of diligence and responsibility.
True
False
Many service industries, including financial services, auto repair, electrical work, plumbing and health care, don't require four-year degrees.
True
False
Part of making a plan to ______________ involves searching for scholarships, saving, and talking with your family about what kind of financial help you'll get.
Get good grades
Pay cash for college
Live in a dorm
Take out a student loan
Your college degree will only cost you the tuition, nothing more.
True
False
Overdraft protection sounds like a good idea . . .
But it will ruin your credit score
And it helps you build wealth
But you have to pay back the deposited money with interest
Because it is
You should figure out what you're passionate about before going to school for a specific field of work
True
False
What does it mean to be blacklisted by a bank?
They have decided to charge you extra fees and limited the services available to you.
You passed the financial literacy test and they offer to pay you for banking with them.
They promise you a higher credit score in exchange for a 15% interest rate on your investments.
The bank doesn't allow you to open an account because you handled money poorly in the past and couldn't pass their financial background check.
Getting good grades and scoring well on college entrance exams give you a better chance of ___________________.
Getting an interview
Getting a scholarship
Graduating early
Going to an out-of-state college
Dropping out of college means you don't have to pay your student loans.
True
False
The amount of money the insurance company agrees to pay for an incident is called_____________.
Co-pay
Coverage
Deductible
Claim
If you're young and healthy, medical insurance is not as necessary.
True
False
You can produce________________ by buying and selling stocks, bonds, mutual funds, an real estate.
Portfolio/investment income
HSAs
A large income
Tax deductions
Medicare and Medicaid are examples of.....
Health Savings Accounts
Private health insurance companies
Emergency Medical Systems
Government programs for public health insurance
A high-deductible health plan with lower monthly premiums is a good option for______________.
Young, healthy people
People who tend to get sick often
College students
The elderly
When you buy clothes or check out at the grocery store, you will pay ____________.
Excise tax
Income tax
Sales Tax
With your tax credit card
The deadline for filing your income tax return usually falls on __________________.
August 15
April 15
October 13
July 4
This type of home insurance covers the structure of your home.
Liability coverage
Homeowner's insurance
Dwelling insurance
Personal property coverage
Property tax, inheritance tax, estate tax, and gift tax are all examples of _________________.
Family tax
Wealth tax
Income tax
Paycheck tax
Getting a big tax refund is not necessarily a good thing.
True
False
_________________ will provide money to replace lost income for years--even up to retirement
Identity theft protection
Long-term disability
Short-term disability
Necessary insurance
What does the Form W-4 estimate?
How much tax you'll owe based on your personal situation
How much income you should be making
How many tax returns you need to submit
How much money you'll spend in that fiscal year
Through the Affordable Care Act, you can stay on your parents' health insurance until.....
You move out of the house
You get married
You turn 18 years old
You turn 26 years old
Every American who earns an income must file a ___________ each year.
Tax extension
Paycheck
Tax deduction
Federal tax return
Don't get sucked into the __________scam.
Term life insurance
Self-insurance
Whole life insurance
Health care
The tax on the purchase of goods or services is called _____________________.
Income tax
Purchase tax
Goods and services tax
Consumption tax
What type of insurance pays for the treatment of injuries and losses to the driver and passengers?
Liability insurance
Uninsured motorist protection
Personal injury protection
Collision insurance
Comprehensive coverage pays for loss or damage to your car caused by_________________.
A collision
Anything other than a collision
Accidents that happen on the road
Personal injuries
In return for paying the insurance company a fee, they will....
Create your monthly budget
Pay for certain expenses for damages
Give you a paycheck every month
Manage your money for you
People who rely on you financially are called your_____________.
Beneficiaries
Family
Dependents
Death benefits
The purpose of life insurance is to replace your _______________when you die.
Income
Health care
Life
Legacy
Insurance companies look at ____________________ to determine the cost of your premium.
Insurance companies look at ____________________ to determine the cost of your premium.
Life expectancy charts, your weight, your age, your hobbies and whether you smoke
Your income
Your FICO score and how well you pay down debts
Renting out property or selling content on a blog are examples of __________________.
Portfolio income
Salary
Passive income
Active income
What is the total tax a person or business has to pay called?
Tax liability
Tax return
Tax day
Income taxes
Your _________ has all the information you'd need in case of an accident.
Insurance card
Glove box
Liability insurance
Local police station
It's wise to have _____________ because even if you're a great driver, there are plenty of people who aren't.
Liability insurance
Health insurance
Dwelling insurance
An SUV
What is the main IRS form that most Americans use to file their taxes?
Form 1099-DIV
Form I-9
Schedule C
Form 1040
You need long-term care insurance before you turn 60 years old.
True
False
Those who properly fill out their Form W-4 shouldn't have too much or too little taxes withheld.
True
False
The cap on the total amount of benefits you can get from your insurance company is called ________________.
The lifetime limit
Your premium
A Health Savings Account
The deductible
Net income is also called your________________.
Fiscal year
Gross income
Take-home pay
Discretionary spending
When you make ___________ money, you will pay ____________ in taxes.
more; the same amount
more; more
less; more
more; less
Wealth taxes are often dependent on ____________________, so it's a good idea to understand the tax rules ________________.
If you went to trade school; in your particular field of study
Where you live; in your state
Your community; of your neighborhood
Your age; for your generation
There are two general types of taxes. Taxes on the money you ______________ and taxes on the money you ________________.
Budget; dont budget
Have; want
Give; save
Earn; spend
Government deficit spending is a good thing because it lowers the amount of taxes that need to be collected.
True
False
If you work and earn money, you will have to pay taxes.
True
False
Withholdings and deductions are . . .
Money that the government gives back to you
Examples of deficit spending
Expenses that are taken out of your paycheck
Categories of a good budget
Renter's insurance will cover you and your belongings if there is ever a fire, theft, or vandalism.
True
False
When someone says they need to file their taxes, they're talking about filling out a _______________.
Tax bracket
Form W-4
Federal tax return
Tax liability
If you're unable to live in your home while it's being repaired, ____________coverage will cover those additional living expenses.
Dwelling insurance
Personal property coverage
Renters insurance
Loss of use
Insurance helps you transfer the _____________ from your bank account to the insurance company.
Health
Money
Risk
Insurance
Getting good grades, driving safely, and driving an older car are examples of ways you can. . .
Lower your auto insurance costs
Avoid getting into an accident
Pass your driver's ed test
Raise your monthly premiums
What is a deductible?
The amount you have to pay before the insurance company will make a payment.
The amount of money the insurance company agrees to pay
The amount of money you pay for your insurance policy every month.
When you report an incident and ask to be compensated for the cost.
Always keep your filed taxes for at least three years in case the IRS decides to _________ your tax return.
Audit
Submit
Review
Reject
A fixed, annual rate of pay that doesn't change by working more or fewer hours is called _______________.
Passive income
Hourly wages
Commission
Salary
Homeowner's insurance costs are ________ in states that are more susceptible to hurricanes, floods or tornadoes.
Better
Lower
Nonexistent
Higher
Only a few states have inheritance tax, which....
Is paid if you sell and inherited gift, like a house
Is applied to a gift over $15,000
Requires you to pay tax on an asset you receive when someone passes away
Is a tax on land, homes, and business property that's paid every year
Giving to a non profit organization can help lower your taxable income.
True
False
Consumption tax pays for things everyone gets to enjoy, like......
Parks, libraries, and zoos
Health insurance premiums
Private schools
A thicker wallet
Life insurance guarantees your loved ones get a certain amount of money when you _______________.
Get injured
Turn 18
Move out of the house
Pass away
Why might someone choose to diversify their investments?
To keep the risk as high as possible so the reward is equally high.
There isn't a good enough reason to diversify your investments.
To balance high-risk investments with more steady and predictable ones.
To keep them from getting bored with one form of investment.
The only time it's okay to borrow money if you can't pay 100% in cash is . . .
Renting a home
For home improvement projects
Buying a home (mortgage)
Getting a car lease
___________________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.
Outrageous generosity
Retirement accounting
Investment banking
Retirement planning
What is scarcity?
It's a restriction placed on goods and services.
It's something that occurs when there's greater demand for something than what's available
It happens when the government takes action to restrict international trade
It's when the government controls the amount of goods or services being used.
What is specialization?
It's when a capitalist nation decides to focus its efforts on producing only 7 types of services.
It's when a country focuses its efforts on producing a limited variety of goods or services.
It's when an economy is completely self-sustaining.
It's when a person chooses to specialize in one career field but it ends up harming their economy.
Learning about the costs of living before you need to cover them and creating good money habits early are both examples of _________________.
Taking personal responsibility
Being a consumer
Wealth building
Poor money management
Inflation, deflation, the rate of economic growth, price levels, national income, changes in employment rates, and GDP are all called . . .
Economic indicators
Global economy
Stock markets
Developing countries
Never _____________ something you don't ________________.
Invest in; understand
Finance; think will appreciate in value
Buy; invest in
Diversify; enjoy
You should buy a home, even if you cannot afford it just yet. Renting is a waste of money
True
False
Whether a country is developed or developing depends on . . .
Their overall population and how quickly their country is currently growing
The amount of native people living in the country at the time of development
The age of their country and when their economy plans to retire
The country's per capita income, standard of living, technology, education, personal freedom and poverty level
What is The Fifth Foundation?
Pay cash for your home
Save for retirement.
Pay cash for college.
Build wealth and give.
A security that represents part ownership of a company is called a(n) _____________________.
Certificate of Deposit
Bond
Annuity
Stock
Equity is the difference between what you still owe on your home and what it is worth.
True
False
What information should a lease contain?
Property address, rental term, security deposit terms, and pet fees
The names and numbers of the closest shopping malls
An agreement that your rent will only be paid on a credit card
Acknowledgement clause, your name, and the local restaurants available
No matter what path you choose to take after high school, the money principles stay the same. What are they?
Only use a debit card for purchases, rent-to-own loans are king, and don't open a savings account.
Invest before anything else and budget if you have time.
Save, budget, stay out of debt, live on less than you make, and be generous.
Live on more than you make and debt dominates all.
A leasing contract . . .
Is something a roommate owes taxes on when they move in with the current renter
Can be terminated at any time without any fees or penalties
Should be signed immediately, even before reading it
Is a legal document that allows the renter (tenant) to use the property for a period of time
You can build a legacy you'll be proud of by . . .
Keeping 10–12 months of living expenses in your emergency fund
Giving your time and money to others
Thinking of yourself first
Sending your kids to trade schools
Be aware of any you might receive, but don't bank on it as a key part of your retirement plan.
Additional work
Bonus checks
Inheritance
Tax refunds
It's important to read your leasing contract, because once you sign it, is enforceable by law
True
False
When riding the highs and lows of the stock market, remember . . .
It will level out, so stick with it!
You can't go wrong when investing money into stocks.
It's unpredictable and risky. You should pull your money out and steer clear
The S&P isn't a reliable source when it comes to navigating the growth and decline of stocks.
What does cost of living refer to?
How wealthy or poor you are at the time of purchasing your first home
The level of wealth, comfort, material goods and necessities available to a group of people
The average cost of the basic goods and services needed to maintain a certain standard of living
How much of your monthly income is budgeted specifically for your rent or mortgage
What does "bull and bear" reference?
The stock market
Your investments
The real estate market
Mutual funds
When you're retired, you'll still have to pay taxes
True
False
Equilibrium is . . .
When the market supply and demand match each other, resulting in price stability
When the availability of a product and how desired it is by consumers affect its price
The lowest point in the business cycle, after a recession
The point at which the economy reaches its maximum level of growth
Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of _________________________ .
Tax forms
Mutual funds
Investment bankers
Retirement plans
When donating money, you should always . . .
Assume the best and trust the charity will use your donation well.
Give to as many organizations as possible to share the love.
Identify a cause that matters to you and research the charity thoroughly
Make short-term commitments to various charities.
What type of interest rate is locked in and won't change for the life of the loan?
Adjustable rate
15-year
Equity
Fixed-rate
Mutual funds are less risky and can outperform the stock market because . . .
They're fully liquid.
They guarantee a high rate of return.
They're not diversified.
They invest in several companies at once.
___________ is the cure for _____________.
Love; the income gaps in our society
Investing wisely; estate planning
Generosity; selfishness
Selfishness; thinking of others first
When you invest in a mutual fund, you are contributing to a pool of money that will be . . .
Put into a separate savings account for your children to inherit someday
Invested in a mix of stocks, bonds and money market accounts
Taxed based on each individual investor's annual salary
Given to hundreds of local charities in your area
It is impossible to get a mortgage without a credit score.
True
False
When you invest, your goal is to earn a negative rate of return on investment
True
False
Investing your money earns you more money because of . . .
Mortgage payments
Checking accounts
Compound growth
Short-term savings
It's okay to borrow money from your retirement account, but don't borrow money to invest in it
True
False
To make living with a roommate more peaceful while you're saving money . . .
Communicate, be respectful, and be considerate
Avoid talking to them in order to avoid conflict
Assume that your best friend will make a great roommate
Require your roommate to pay a larger rent check than you do
You should wait to be generous until you have money to give.
True
False
The three components of compound growth are money, time and .
Investments
Retirement
Rate of return
A large paycheck
The U.S. is mostly a . . .
GDP
Demand
Free market
Focused economy
Usually, the more liquid an asset is (like cash in the bank), the less return you can expect
True
False
Which factor of production refers to the man-made objects like tools, machinery, buildings, and equipment needed for production?
Capital
Market
Tertiary
Products
Renting is a great option for many people.
True
False
An extreme result of free-market capitalism without government regulation is referred to as . . .
Capitalism
Socialism
A mixed economy
A monopoly
Low supply and high demand increase the price of an item
True
False
When using a Roth plan, you invest your money after paying taxes, and the investment grows tax-free.
True
False
Which type of loan is not secured by a government entity and usually has the best rate and term?
Conventional loan
Family loan
FHA loan
VA loan
Before you invest, you should make sure a mutual fund has done well for 5-10 years.
True
False
The series of steps it takes to produce a product is called the . . .
Market values
Factors of production
Chain of production
Economic sectors
Economic interdependence . . .
Means that countries do not depend on each other for their economic well-being
Means that we're all dependent upon the economy for our personal happiness
Describes how all the countries of the world handle their money
Describes how many countries and companies around the world depend upon each other
Diversification reduces your _________________ by using a mix of investment types in your portfolio.
Mutual Funds
Retirement Funds
Risk
Income
You can depend on the people in power to either make you wealthy or make you poor.
True
False
