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WorksheetsFamily Dynamics-Personal Finance
Total questions: 60
Worksheet time: 25mins
How do wages and salary differ?
Wages describe what you earn on an annual basis
Salary describes what you earn on an annual basis
Wages mean you have a standard amount in each paycheck
Salaried employees are likely to be paid for overtime
Which of the following are TRUE about gross income and net income? (hint: choose 2 correct answers)
Gross income and net income are the same
Net income is sometimes called "take home pay"
Gross income is the total amount earned before deductions
Net income is the total amount earned before deductions
Which of the following may NOT always appear on your paycheck stub?
Gross Pay
Net Pay
Your Role/Title
Local Tax
It's common to have all of the following expenses BEFORE signing a lease EXCEPT...
Renter's Insurance
Application fee
Application deposit
Apartment hunting expenses
Which of the following might you pay WHEN you sign your lease?
Finder's fee
Application fee
Security deposit
Renter's insurance
According to a rule of thumb, rent shouldn't take up more than ___ % of your take-home pay.
7-12%
10-15%
15-20%
25-30%
Which of the following would typically NOT be covered under renter's insurance?
A friend slips and twists his ankle in your living room
Your apartment is broken into and your laptop is stolen
A fire destroys 80% of your belongings
Your apartment is flooded, destroying your furniture
Which of the following is a step you can take to mitigate the risk of buying a used car? (hint: choose 2 correct answers)
Get a vehicle history report
Have a mechanic inspect the car after you buy it
Skip the test drive; you have time after you buy it to drive
But a certified, pre-owned car from the dealer
Which of the following is NOT a cost of owning a car?
License and Registration fees
Gasoline
Utilities
Insurance
Which of the following reasons would explain why Justin has decided to forgo owning a car? (hint: choose 2 correct answers)
Public transportation infrastructure does not exist
The walking score in his city is high
He only has his driver's permit
There are numerous car dealerships in his area
About how much of your income should go towards transportation?
5-10%
15-20%
25-30%
35-40%
Jenna wants to decrease the amount of $ she spends on food. Which of the following would help? (hint: choose 2 correct answers)
Decide what she will make for dinner that same day
Go to the grocery store with a list
Go to the store whenever she needs 1-2 items
Keep staple foods (e.g. beans, rice) readily stocked
Which of the following is TRUE about unit pricing?
Unit prices can help you compare the prices of similar items
Unit price labels are universal throughout the country
It's easy to compare quantities on a unit price label
All states require unit price labels
A 18oz box of cereal costs $4.99. How would you calculate the unit price?
18oz / $4.99
9 oz / $2.50
$4.99 / 18oz
(18oz) x ($4.99)
6 cans of tomato soup cost $14.99. What is the unit price?
About $1.50
About $2.50
About $3
About $3.50
Jabar broke his leg while riding his bike. How does having health insurance help him?
Jabar will likely have to pay $0 towards his medical costs
Jabar will likely have to cover 100% of his medical costs
Jabar will likely owe a portion of his medical costs
Having health insurance makes no difference
What is a deductible?
The cost you and your insurance share
The amount your insurance pays before you pay
The discount you get on your health insurance every year
The amount you pay before your insurance begins to pay
How can consolidating your student loans help your budget? (hint: choose 2 correct answers)
You'll pay more in interest over time
You can manage your money more easily since you're making just one payment
Your monthly payment may decrease
Your interest rate is guaranteed to decrease
How does the 50/30/20 rule of thumb for budgeting allocate your income?
50% Needs, 30% Wants, 20% Savings & Debt Repayment
50% Wants, 30% Needs, 20% Savings & Debt Repayment
50% Savings & Debt Repayment, 30% Wants, 20% Needs
50% Needs, 30% Savings & Debt Repayment, 20% Wants
Which of the following is an example of buying something you NEED?
"I want to replace something that is no longer working."
"I want to impress someone/ change how they feel about me."
"I'm feeling down, and I need to boost my spirits."
"I don't want to miss out on these deals during the sale!"
People who are unbanked are most likely to...
Use a mobile banking app
Receive a monthly statement of their transactions
Deposit their checks at the ATM
Incur lots of fees at Check Cashers to access their money
Which of the following is TRUE about checks? (hint: choose 2 correct answers)
You should endorse the back when writing a check
The amount of money is written both numerically and in words
Checks should show up on your statement within 30 days
You should endorse the back when depositing a check
Overdraft protection...
is a service offered only for premium checking accounts.
brings in a few hundred dollars each year to banks.
is a fee-free service that prevents you from overdrawing.
can keep you from overdrawing but charges a fee.
Mobile or email alerts for your checking account can notify you of...(hint: choose 3 correct answers)
Low balances
Unusual activity
Deposits
Credit Card transactions
Which of the following will DEFINITELY show up on your bank statement at the end of July? (hint: choose 2 correct answers)
Ice cream bought with your debit card on July 16th
A salad bought with cash on July 5th
A birthday check you gave to your brother on July 18th
An ATM withdrawal you made on July 21st
A checking account is best used for...(hint: choose 2 correct answers)
Saving money
Storing money to spend
Investing money
Placing money you earn
How can you protect your checking account when using online and mobile banking? (hint: choose 2 correct answers)
Use a strong password
Sharing your pin # with only 1 person in case you forget it
Connect to a secure WiFi network
Opt-out of alerts to notify you of unusual activity
You see an advertisement promoting a sale “for a limited time only!” with a countdown clock. Which bias is being used?
Herd Mentality
Loss Aversion
Hedonic Adaptation
Fear of Missing Out (FOMO)
Behavioral economics is …
The study of how rational people make economic decisions
The study of how irrational factors affect individual’s economic decisions
The study of how economies around the world interact with each other
The study of how investors choose which stocks to buy and sell
Guy bought tickets to a concert but there is a bad snow storm. He decides to go anyway because he paid for it. This is
Sunk Cost Fallacy
Endowment Effect
Overconfidence
Herd Mentality
Ally signs up for a Netflix trial. Because she “owns” a full account, she places high value on it and signs up. This is
Loss Aversion
Herd Mentality
Overprecision
The Endowment Effect
Peter can choose from two retirement accounts. Fearing a loss, he opts for the more conservative one. This is a type of
Confirmation Bias
Overconfidence
Loss Aversion
Fear of Missing Out (FOMO)
Paula sees her friends' pictures of a concert that she couldn't attend because of work. She feels like an outsider.
Paula is experiencing Fear of Missing Out (FOMO)
Paula is experiencing Herd Mentality
Paula is experiencing Loss Aversion
Paula is experiencing Confirmation Bias
Which of the following is an example of loss aversion?
Selling your house at a loss to find a better investment opportunity
Believing that your house is worth more than it is because you own it
Deciding against selling your house below what you purchased it for
Only looking at sources that reinforce a higher selling value for your home
Confirmation bias is …
The tendency to seek out information that supports our existing beliefs
The tendency to value something more because you own it
The belief that we are better at something than we actually are
The belief that we should do something because our friends are doing it
People who win the lottery tend to return to their original levels of happiness after the novelty of winning wears off.
This is an example of the Endowment Effect
This is an example of Confirmation Bias
This is an example of Hedonic Adaptation
This is an example of Herd Mentality
The Fear of Missing Out, or FOMO, is…
The effect of feeling a loss more than an equal gain
The anxiety that an interesting or exciting event is happening without you
Placing higher value on things you own
The opposite of YOLO (You Only Live Once)
The Endowment Effect is …
Doing something because you see all of your friends doing it
Valuing something more because you own it
Returning to a baseline level of happiness after a major event
Continuing something because you have contributed resources to it
The irrational ways that we process information & make decisions using our own perspective and incomplete information.
Cognitive biases
Hedonic Adaptation
The Endowment Effect
Overprecision
You are new to a city and find two restaurants near each other that offer a similar menu. You pick the more crowded one.
This is an example of Fear of Missing Out (FOMO)
This is an example of Herd Mentality
This is an example of Sunk Cost Fallacy
This is an example of Overvaluing
Marie's car has needed over $2000 in repairs. She resists selling it because she has spent so much money. This is...
The Endowment Effect
Confirmation Bias
Overconfidence Bias
Sunk Cost Fallacy
While researching Apple, Remy tends to focus on positive stories about their profits instead of stories about poor sales
Remy is experiencing the Endowment Effect
Remy is experiencing Overconfidence Bias
Remy is experiencing Herd Mentality
Remy is experiencing Confirmation Bias
75% of drivers believe that they are above average. Which type of overconfidence is this an example of?
Overestimation
Overplacement
Overprecision
Overvaluing
In 2021, many people saw the value of Gamestop stock increasing sharply and purchased the stock too. These buyers were
Experiencing Herd Mentality
Experiencing Overprecision
Experiencing Confirmation Bias
Experiencing Hedonic Adaptation
Which of the following is an example of allowing sunk costs to impact your decision?
Not selling a baseball card that you think is worth more because you own it
Continuing to watch a movie that you don’t like because you paid to see it
Selling a stock because you see the price drop and want to avoid losses
Buying a new phone because you see all of your friends have that it
Max believes his sense of direction is excellent and refuses to ask for directions. Which overconfidence is he showing?
Overestimation
Overplacement
Overprecision
Oversimplifying
Overprecision is …
The exaggerated certainty that our beliefs are correct
The overvaluing of our own abilities relative to everyone else
The belief that we are above average without supporting evidence
The expectation that other people place upon us to be accurate all the time
