WorksheetsCareer Prep 9 Weeks Study Guide
Total questions: 50
Worksheet time: 28mins
Zara goes to the mall with her friends, who all buy new shoes. Zara hadn’t planned to buy new shoes that today, but she bought shoes just like her friends. This is an example of
peer pressure
family dynamics
personal preference
effective marketing
Dawn has a retirement account. Which of the following best describes this account?
asset
liability
net worth
budget
In a budget, a(n) ____ is anything you owe.
asset
liability
net worth
budget
A(n) ____ is anything of value that you own.
asset
liability
net worth
budget
If Maddy’s gross pay is $500 this pay period and the Social Security tax is 6.2%, how much Social Security tax will be deducted from Maddy’s paycheck?
$310.00
$7.25
$72.50
$31.00
The ____ is the form employers use to inform you of the amount of money deducted from your paycheck in a given year.
W4
I9
W2
W9
If Chase worked 10 hours last week at $7.25 per hour, what is his gross pay?
$725.00
$43.00
$72.50
More info is needed
The total money you get to “take home” from your paycheck after taxes and deductions is _____.
gross pay
federal income tax
state income tax
net pay
The total money earned in your paycheck before taxes and deductions is _____.
gross pay
net pay
federal income tax
state income tax
Money earned regularly with little or no effort is known as
earned income
portfolio income
passive income
working income
Which of the following is considered passive income?
your paycheck
profit from selling a house
rent received from a rental property
profit from selling a stock
Money earned from working is
passive income
earned income
portfolio income
working income
Which of the following is an example of a long-term goal?
Emery wants to plan for his retirement.
Emery wants to save for a car when he turns 16.
Emery wants to open a savings account.
Emery wants to save $100 for a trip this summer.
The T in SMART goals refers to making goals that are
timely
taxes
thorough
third
According to financial experts, what portion of your income should be saved?
20%
30%
40%
50%
If you discover that you have a budget deficit, how should you fix the problem?
increase inflows
increase inflows and decrease outflows
decrease outflows
it’s not really a big problem. Maybe it will fix itself.
According to financial experts, what portion of your income should be devoted to wants?
20%
30%
40%
50%
The S in SMART goals refers to making goals that are
school
short-term
sharp
specific
Heidi’s car recently broke down. The repair cost her $725. The money Heidi paid to repair her car would be considered a…
variable expense
periodic expense
fixed expense
want
Anita’s power bill was $75 in September and $88 in October. A power bill is an example of a…
periodic expense
fixed expense
variable expense
want
The M in SMART goals refers to making goals that are
medium-term
measurable
mighty
marvelous
Which of the following is an example of a short-term goal?
Katie wants to save for college.
Katie wants to save $100 for a trip this summer
Katie wants to save to buy a house.
Katie wants to plan for her retirement.
According to financial experts, what portion of your income should be devoted to needs?
20%
30%
40%
50%
A mortgage payment is an example of a ________
fixed expense
variable expense
periodic expense
want
The R in SMART goals refers to making goals that are
responsible
resourceful
relevant
redundant
Tyler is 62 and married, He is hoping to retire next year, and he is evaluating his investment options. He currently has $3,000,000 to invest. Which low-risk investments would be the BEST choice for Tyler?
Municipal bonds
Junk bonds
An individual stock
All of the choices would be good investments for Tyler
Which of the following is NOT a recommended strategy when investing in stocks?
Avoid investing solely in individual stocks
Sell your stocks when the market is going down
Hold onto your stocks, and don’t sell them even when the market goes down.
Buy when the price is low.
Kaitlyn is 19 years old, and her grandmother recently passed away. She was surprised to learn that her grandmother left her $500,000 in her will. Which mid-risk investment would you recommend for Kaitlyn?
a regular savings account
US Government Savings Bonds
Mutual funds
Money Market account
A ________ allows you to store your money in a bank while earning interest.
savings account
checking account
municipal bond
mutual fund
A great rule of thumb is to
pay your bills first
pay yourself first
start saving and investing when you turn 30
save all the money left over at the end of the month
Many financial advisors recommend that investors diversify their investment portfolio. Which of the following is NOT true about a diverse investment strategy?
It protects against risk
It is a strategy of having many different types of investments.
You will not lose any money with this strategy.
You will have a mix of risky and safe investments.
Which type of savings account has a set term length and you cannot withdraw your money before that date without incurring penalties?
Stocks
Traditional Savings Accounts
Money Market Accounts
Certificate of Deposit (CD)
Using the simple interest formula, calculate the interest earned on $1,200 after 1 year at 4% return. (I=PRT)
$48.00
$4.80
$84.00
$8.40
In the formula to calculate simple interest, what does the p stand for?
principal
pi
patience
price
Using the Rule of 72, calculate approximately how long it will take to double your money if your money is earning a 8% interest rate. (72/INTEREST)
5 years
8 years
9 years
10 years
Using the simple interest formula, calculate the interest earned on $150 after 1 year at 6% return.
$90.00
$0.09
$9.00
$4.00
Using the simple interest formula, calculate the interest earned on $25,000 after .5 years at 3% return.
$375.00
$750.00
$37.50
$75.50
Using the Rule of 72, calculate how approximately how long it will take to double your money if your money is earning a 10% interest rate.
2 years
7.2 years
5 years
10 years
In the formula to calculate simple interest, what does the i stand for?
interest time
interest
interest rate
amount invested
In the formula to calculate simple interest, what does the t stand for?
tiramisu
time
target
table
Which founding father coined the phrase “Money makes money, and the money that money makes, makes more money?”
George Washington
Thomas Jefferson
Benjamin Franklin
James Madison
The FDIC insures money deposited at banks and credit unions up to ______.
$50,000
$250,000
$200,000
$100,000
Which of the following investments signifies ownership in a corporation?
stocks
bonds
real estate
commodities
Identify the investment:
- natural resources
- minerals
- food staples
commodities
real estate
stocks
bonds
Which of the following is NOT a type of savings account?
money market account
mutual fund
certificate of deposit
traditional savings account
In the formula to calculate simple interest, what does the p stand for?
principle
principal
pi
patience
Identify the investment:
- insured by the FDIC
- earns higher interest than a traditional savings account
- requires a higher balance than a traditional savings account
ETFs
money market account
bonds
stocks
Who assists you in purchasing real estate?
stockbroker
real estate agent
an insurance agent
a police officer
Identify the investment:
- pools similar stocks together
- the most popular type of investment
- safer than investing in individual stocks
mutual funds
bonds
real estate
commodities
Identify the investment:
- insured by the FDIC
- lowest interest rate of all investments
- in most cases, you can make up to 3 withdrawals per month
money market
traditional savings account
ETFs
CDs
