Font size
WorksheetsUnit G: Life Survival (Finance)
Total questions: 63
Worksheet time: 33mins
APY
Annual Percentage Rate
Annual Percentage Yield
Average Percentage Yearly
Average Percentage Rating
Checking Account
type of bank account that allows you to easily deposit and withdraw money for daily transactions
type of bank account that allows you to deposit your money and typically earn a modest amount of interest
Security Code on Debit/Credit Card:
Typically three-digit number on the back of card
First set of 9 digits on the bottom of card
Second set of 10 digits on bottom of card
Found on the front of card; shows when card expires
Withdrawal:
To take money out of a bank account
To put money into a bank account
Compound Interest:
when you earn interest on both the money you’ve saved AND the interest you earn; this occurs at different time periods (or "frequencies")
specific, fixed interest tied to a loan or a line of credit that must be repaid, along with the principal.
What documents do you need to open a bank account?
Social Security Card
Government-Issued ID
At least $25 to deposit
To be 18+ (unless you have a "joint owner" on account)
All of these are correct
Which is an example of a "compound frequency"?
Daily
Monthly
Annually
Semi-Annually
All of these are examples of compound frequencies
T/F: Words should be in all caps on the "amount in word form" line.
True
False
T/F: The bank will still cash/deposit a check if it does not have a signature on it.
True
False
Which answer below correctly shows how the amount in word form should be written?
Eighty-six and 27/100
EIGHTY-SIX AND 27/100
eighty-six and 27/100
EIGHTY-SIX and twenty-seven cents
Which answer below correctly shows how the amount in word form should be written?
twenty-four and 27/100
TWENTY-FOUR AND 27/100
twenty-four and 27/100
TWENTY-FOUR and twenty-seven cents
T/F: change amounts are written as fractions on checks.
True
False
Hard Inquiry:
When a lender requests to review your credit report as part of the loan application process; usually affects your credit score
typically occurs when a person or company checks your credit as part of a background check; usually does not affect your credit score
Credit Score:
three-digit number, typically between 300 and 850, designed to represent your credit risk, or the likelihood you will pay your bills on time
It can help creditors determine whether to give you credit, decide the terms they offer, or the interest rate you pay.
A good score can make it easier for you to get a loan, rent an apartment, or lower your insurance rate.
All of these are correct of credit score
Which is not one of the five factors that dictate credit scores?
Credit mix
Payment history
Credit history length
Money in banking accounts
One of the five factors that impact credit score - Credit Mix:
Lenders want to be sure that you will pay back your debt, and on time, when they are considering you for new credit.
Your credit score takes into account how much debt you have in comparison to your total amount of credit.
The time, in years usually, you have had credit lines open
Diversity of credit; bank loans, college loans, vehicle loans, etc.
New credit (or "hard inquiries"); looks at how often these inquiries are ran and how new credit lines are
The higher the credit score, the _____ the interest rate on a loan.
higher
lower
The lower the credit score, the _____ the interest rate on a loan.
higher
lower
The longer the loan is, the ____ you will pay per month.
less
more
The shorter the loan is, the ____ you will pay per month.
less
more
Savings Account
type of bank account that allows you to easily deposit and withdraw money for daily transactions
type of bank account that allows you to deposit your money and typically earn a modest amount of interest
APR
Annual Percentage Rate
Annual Percentage Yield
Average Percentage Yearly
Average Percentage Yield
What is the difference between APY and APR?
Annual Percentage Yield (APY) takes into account compound interest while Annual Percentage Rate (APR) does not
Annual Percentage Yield (APY) does not take into account compound interest while Annual Percentage Rate (APR) does
No difference
Deposit:
To take money out of a bank account
To put money into a bank account
Fixed Interest:
when you earn interest on both the money you’ve saved AND the interest you earn; this occurs at different time periods (or "frequencies")
specific interest tied to a loan or a line of credit that must be repaid, along with the principal.
One of the five factors that impact credit score - Payment history:
Lenders want to be sure that you will pay back your debt, and on time, when they are considering you for new credit.
Your credit score takes into account how much debt you have in comparison to your total amount of credit.
The time, in years usually, you have had credit lines open
Diversity of credit; bank loans, college loans, vehicle loans, etc.
New credit (or "hard inquiries"); looks at how often these inquiries are ran and how new credit lines are
One of the five factors that impact credit score - Amounts owed:
Lenders want to be sure that you will pay back your debt, and on time, when they are considering you for new credit.
Your credit score takes into account how much debt you have in comparison to your total amount of credit.
The time, in years usually, you have had credit lines open
Diversity of credit; bank loans, college loans, vehicle loans, etc.
New credit (or "hard inquiries"); looks at how often these inquiries are ran and how new credit lines are
One of the five factors that impact credit score - Credit History Length:
Lenders want to be sure that you will pay back your debt, and on time, when they are considering you for new credit.
Your credit score takes into account how much debt you have in comparison to your total amount of credit.
The time, in years usually, you have had credit lines open
Diversity of credit; bank loans, college loans, vehicle loans, etc.
New credit (or "hard inquiries"); looks at how often these inquiries are ran and how new credit lines are
One of the five factors that impact credit score - New Credit:
Lenders want to be sure that you will pay back your debt, and on time, when they are considering you for new credit.
Your credit score takes into account how much debt you have in comparison to your total amount of credit.
The time, in years usually, you have had credit lines open
Diversity of credit; bank loans, college loans, vehicle loans, etc.
Considered "hard inquiries"; looks at how often these inquiries are ran and how new credit lines are
Which answer below best shows how to prevent check fraud?
Writing your amount in numeric from in the far left of the numeric box
To write amount in all CAPS when writing it in word form
To NOT write and sign blank checks - meaning the "payee" line in blank
All of these can help prevent check fraud
Which answer below correctly shows $127.01 in word form?
one hundred twenty-seven and 01/100
ONE HUNDRED 01/100
ONE HUNDRED TWENTY-SEVEN AND 01/100
$127.01
What can a good credit score earn you? Check all that apply!
A credit card with a lower interest rate
A desirable car loan and/or lease
A higher interest rate on a loan
A home loan (mortgage) with a desirable interest rate
What is a mortgage?
Home loan
Car loan
Boat loan
Personal loan
For your savings account, you would prefer a _____ interest rate (APY)
high
low
For your credit card, you would prefer a _____ interest rate (APR).
high
low
T/F: APY includes compound interest; included in savings accounts.
True
False
What does the term "compound" mean in finance?
Interest being accrued, or added to total
Savings made in account
Monthly payments to total (principal and interest)
Gross Pay
Income before deductions
Income after deductions
Income earned being self-employed
Net Pay
Income before deductions
Income after deductions
Income earned being self-employed
T/F: Everyone pays the same amount of federal income tax.
False; it is based on income
True; every pays the same tax percentage
False; lower class pays a higher tax percentage than the middle-upper class
Deduction:
Money taken from your paycheck to cover things like taxes and health insurance
The amount of money you earn before taxes and other expenses
Wage, or the amount of money you earn per unit of time, such as an hour or week
The amount of money you take home after taxes and other expenses are taken out
Gross Pay:
Money taken from your paycheck to cover things like taxes and health insurance
The amount of money you earn before taxes and other expenses
Wage, or the amount of money you earn per unit of time, such as an hour or week
The amount of money you take home after taxes and other expenses are taken out
Net Pay:
Money taken from your paycheck to cover things like taxes and health insurance
The amount of money you earn before taxes and other expenses
Wage, or the amount of money you earn per unit of time, such as an hour or week
The amount of money you take home after taxes and other expenses are taken out
SSN
Social Security Number
Special Security Number
Social Services Number
Sigma Social Nu
YTD
Year to date
Year to data
Yield to date
What does "FICA" on your paystub consist of?
Health insurance
Employment Sponsored Retirement
Federal & State Insurance Tax
Social Security & Medicare
What is an example of an "employer contribution"? (There are two correct answers; check them both!)
Health Insurance
Retirement
Federal & State Income taxes
How much has Mrs. Cramer made year-to-date net?
$1698.05
$153.64
$779.95
$2478.00
How much is Ms. Cramer making per hour (not overtime)?
$28.00
$35.00
$76.00
$10.00
How much did the state of GA take out of Ms. Cramer's paycheck?
$148.68
$441.70
$153.64
$35.93
What is the FICA SS tax?
Social Security Tax
Selective Services Tax
Social Studies Tax
$35.93
What of these is correct about Social Security?
Federal program in the U.S. that provides retirement benefits and disability income to qualified people, as well as their spouses, children, and survivors.
workers must be at least 62 years old and have paid into the system for 10 years or more
Workers who wait to collect Social Security, up to age 70, will receive higher monthly benefits.
All of these are correct
How often does Ms. Cramer get paid per month?
Once a week
Twice a month
Once a month
Every Monday
Which is true of payroll withholding?
Social Security is funded through payroll withholding
Through payroll withholding, employees pay into programs where they work
An employer collects taxes on an employee through payroll withholding
All of these are true
T/F: The State of KY AND the US Federal Government take taxes out of your paycheck.
True
False
Which answer best shows employed income? (Check all that apply!)
Working at Zaxbys
Working at Canes
Cooking your own chicken and selling it
Working at CFA
Which answer best shows self-employed income? (Check all that apply!)
Freelance photography
Running your own lawn-care business
Cooking your own chicken and selling it
Working at CFA
What is a W-2 Tax Form?
shows important information about the income you've earned from your employer, amount of taxes withheld from your paycheck, benefits provided and other information for the year; employees receive this in January for the previous tax year
Also known as the employee’s withholding allowance certificate, tells employers how much income tax to withhold from an employee’s pay; completed in pre-hire paperwork
An IRS tax form used for personal federal income tax returns filed by United States residents.
Which is not a way to file your taxes?
Online program - TurboTax, TaxSlayer, H&R Block
Mailing it into the IRS
Taking your W-2 Tax Form to a bookkeeper
Sending your W-2 to the HR/Payroll worker at your employer
Why would you receive a tax refund from the IRS after filing them?
Too much income tax was taken out of your paycheck by your employer
Too little income tax was taken out of your paycheck by your employer
You received a promotion at work
Too much income was spent on gambling; reimbursement
T/F: you can file your taxes by yourself without the help of a book keeper.
True
False
According to Maslow's Hierarchy of Needs, what is the first thing you must have before you can be successful at work, at home, and in your social life?
food, shelter, water, sleep
personal security, financial security
love and belonging
high self-esteem
What is a 1040 Form?
shows important information about the income you've earned from your employer, amount of taxes withheld from your paycheck, benefits provided and other information for the year; employees receive this in January for the previous tax year
Also known as the employee’s withholding allowance certificate, tells employers how much income tax to withhold from an employee’s pay; completed in pre-hire paperwork
An IRS tax form used for personal federal income tax returns filed by United States residents.
