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WorksheetsFinancial LIteracy Review S2
Total questions: 60
Worksheet time: 56mins
How do you calculate your salary per pay period?
Divide annual salary by the number of pay periods per year
Divide number of pay periods per year by the annual salary
Multiply the annual salary by the number of pay periods per year
Multiply the salary per pay period by the number of pay periods per year
If a person earns $30,000 a year, how much is their monthly salary?
(a)
Generally, the more education you receive, the higher your lifetime earnings will be.
True
False
What is net pay?
The amount of pay earned for the total number of hours worked.
The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
The amount of money you're paid before all taxes and deductions are taken out of your paycheck.
Your gross pay plus any bonuses.
There is no relationship between the level of education received and lifetime earnings.
True
False
The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________.
Gross pay
Net pay
Total pay
Year-to-date pay
Which of the following is a possible tax or deduction that they may show up on your paycheck?
Federal income tax
Contributions to retirement savings
FICA
All of the above
Which of the following is NOT a possible tax or deduction that could show up on your paycheck?
State income tax
Contributions to retirement savings
FICA
Sales tax
What is the purpose of the W-4 form?
To file your tax return.
To determine how much your gross pay should be.
To inform your employer of how much federal income tax to withhold from your paychecks.
To avoid paying income taxes on your paychecks.
When you start a new job, you fill out a W-4 form to _________.
determine how much your gross pay should be.
file your tax return.
avoid paying income taxes on your paychecks.
to determine how much federal income tax your employer should withhold from your paychecks.
Your employer sends you a _______ form that tells you how much you've made and how much you've paid in taxes in the last year.
1040
W-2
W-4
W-9
The W-2 form is a form that tells you _______.
how often you will be paid.
how much taxes you owe to the federal government.
how much taxes to withhold from your paycheck.
how much taxes you've paid in the last year based on how much you've earned.
Which of the following statements is true about taxes?
Taxes pay for schools and government departments.
Taxes pay for roads and emergency services.
Taxes are often used at the federal, state, and local levels.
All of the above
What do taxes pay for?
Schools, government departments, roads, and emergency services
Privately-owned businesses
Operation of financial institutions
None of the above
How does the government pay for roads, schools, and emergency services?
They are funded through non-profits.
They are funded through taxes.
They are funded through charitable donations.
None of the above
The ___________ is a flexible market that allows you to work short-term, independent jobs.
gig economy
labor market
employee workforce
sharing economy
What do you need in order to fill out your 1040?
Your W-2
Your routing and bank account number
A record of any other supplemental income
All of the above
When considering a job offer, you should only consider how much you're being paid before you accept the offer.
TRUE
FALSE
How much you're being paid is the only thing you need to consider when considering a job offer.
TRUE
FALSE
Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer.
benefits
pensions
deductions
allowances
What does FAFSA stand for?
Financial Aid Federal Student Application
Federal Aid For Students Application
Free Application for Federal Student Aid
Final Application for Federal Student Aid
What does "EFC" stand for?
Estimated Financial Contribution
Expected Family Contribution
Expected Financial Contribution
Estimated Family Contribution
True or False: EFC is the number used to determine your eligibility for financial aid.
True
False
Which type of financial aid is free money (financial aid that doesn't have to be repaid or earned)?
Grant
Work-Study
Student Loan
What is the date during senior year when you can start your FAFSA?
October 1
December 1
December 31
January 1
A form sent to the student after submitting the FAFSA.
Student Aid Report (SAR)
Work-Study
Award Letter
Cost of Attendance
This includes tuition, fees, and a standard allocation designed to cover reasonable living expenses while attending school. It is determined by the school using guidelines established by federal regulations.
Estimated Family Contribution (EFC)
Cost of Attendance
FAFSA
Financial Need
What are the two types of federal loans? Select 2
Unsubsidized
Subsidized
Variable
Fixed
What is the purpose of income tax?
To fund public goods and services
Receive a refund
To get money back for working
None of the above
FICA tax is a mandatory tax withheld from your gross income.
True
False
An individuals income before tax is called (a) .
The Form W-4 is used to withhold what type of tax?
Federal
State
Personal
None of the above
In order to qualify for financial aid, prospective college students must file their _____________.
Financial Aid Letter
SAT or ACT
Parent tax return
FAFSA
Which is an entrepreneur?
a parking lot attendant
a corporate vice president of human relations
a state government official
a woman who designs and makes her own line of clothing and sells them to her friends
Identify TWO examples of taxes deducted from your paycheck.
Federal
Road Taxes
Social Security
Public Safety Tax
A W-2 form shows you how much income you earned over the past year.
True
False
A W-2 can show you how much $ is withheld, or deducted, from your income you earn from your job.
True
False
The following information is required on a W-2 form EXCEPT:
employee's full name
employee's address
employer name & address
all info here is needed
The W-4 form lets...
the government know how much you paid in taxes last year
your employer know how much to withhold from your paycheck
the 3 major credit bureaus know how many dependents you have
you know how much you paid in taxes last year
When you receive a new job, you are mandated to file a
Complaint
Divorce
W-4
W-2
Jan pays federal taxes every year based off her yearly income. Which type of tax is calculated by the amount of your income?
Payroll Tax
Income Tax
Sales Tax
Property Tax
Which is TRUE about sticker price and net price? (hint: choose 2 correct answers)
Net price is the published cost of going to a school
Sticker Price is the published cost of going to a school
Net price is the sticker price minus scholarships & grants
Sticker price is the net price minus scholarships & grants
Why should you file the FAFSA as early as possible?
It can help your chances of being accepted into schools
Aid is given out on a first-come, first-serve basis
You're guaranteed to get more merit-based scholarships
You'll get a lower interest rate on federal student loans
What kinds of aid are you eligible for by filing the FAFSA? (hint: choose 3 correct answers)
Grants and Scholarships
Private Student Loans
Work-Study
Federal Student Loans
You have more control over (a) (things like transportation and personal expenses) because you can decide how much to spend in these areas, or if you need to spend anything at all. For example, you could choose to go out to eat less and reduce the amount you’re spending on meals. With (b) , those are more likely to be costs that are out of your control (like tuition).
The (a) is what is listed by most colleges and universities as the cost of (b) .
The (c) is what you actually end up paying to attend that school - typically, the net price is lower than the sticker price due to (d) you receive in scholarships and (e) (money that you do not have to pay back.)
Which formula is used to calculate the net price of a college?
Sticker price + grants and scholarships = net price
Sticker price + value = net price
Sticker price – (grants and scholarships) = net price
Sticker price - value = net price
Money awarded to students that does NOT need to be repaid, often based on need
Loan
Grant
Savings
Work Study
