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WorksheetsPersonal Finance Midterm
Total questions: 81
Worksheet time: 50mins
Rent to own is a good option to get things you want to have.
True
False
Which of the following are better options than getting an item from a rent to own store?
Using a credit card to buy it and making regular payments
Saving up the money to buy it
Trying to find a similar item that is used that you can afford
All of these are better options
If you chose to make weekly payments on this rent to own item, you would have it paid off in...
about a year and a half
around 5 years
Less than 1 year
2 years and 3 months
If you chose to make weekly payments on this rent to own item, how much would you pay by the time you had made all the payments?
$2617
$1727
$34
$135
According to this pricing, how much could you save by paying the same as cash price instead of the total cost to own?
Around $900
Around $50
Around $2000
Around $500
How does the same as cash price at a rent to own place compare with the price you would pay on a website like Amazon?
Around the same
A bit less
A lot more
A lot less
If you are following a 50-30-20 budget, how do you know how much you can use for saving for the future?
If you have no debt, you can use 20% of your income for savings
You just decide how much you want to save and then you can spend the rest
You pay all your bills and then you can save the rest
Which of these hourly wages will give you around $60,000 a year for full time work.
$20
$30
$40
$50
Most jobs these days will pay you a pension when you retire
True
False
If someone does not have a job, they don't have any income.
False
True
Soren has a full time job that pays $26 per hour. Owen has a full time job that pays $45,000 per year. Which of them make more?
Owen
Soren
The make the same
It is not possible to tell
Anybody can get government aid.
True
False
If you want to improve your chances of getting a high paying job, having more advanced education or training is a good idea.
True
False
If you finish high school and don't feel like getting a job, you can collect social security payments.
True
False
On average, people in their late 30's make more than people in their late 20's.
true
false
A 401-K is...
a personal retirement account that your employer offers. You have to put the money in, and your employer might too.
A law that says your employer has to pay for health care if you are injured on the job
A name for your pension program
Large employers are required to provide a health care plan to their full time employees.
true
false
If I have a job and want to take college classes to get a higher paying job, there is a good chance that my employer will help me pay for it.
true
false
Family medical leave act is all about _____ while you are caring for a sick family member.
getting you a paycheck
ensuring that you can return to your job later
helping cover medical bills
Using your inflation chart from class, if there was 5% inflation, how much would you expect your $100 grocery bill to cost in 20 years?
$265
$125
$2124
$482
Using your inflation chart from class, if there was 2% inflation, how much would you expect your $50 shoes to cost in 40 years?
$221
$110
$78
$200
Using your inflation chart from class, if there was 8% inflation, how much would you expect your $5 coffee to cost in 50 years?
$234
$118
$38
$17
Until the last few years, inflation has been at a pretty low rate for your lifetime.
True
False
A low rate of inflation is expected and is not bad for the economy
True
False
A high rate of inflation is bad for the economy
True
False
Inflation generally affects both prices and wages.
True
False
If I put $100 in a jar in my closet and take it out in 20 years, I can expect...
I will be able to buy more with it than when I put it in.
I will be able to buy less with it than when I put it in.
I will be able to buy the same with it than when I put it in.
Will saving your money in a box in your closet help you prepare for long term goals like retirement?
Yes, because then you will have money
No, because you will have to pay a lot in taxes
No, because your money will decline in value due to inflation
Yes, because your money will grow in value
Rent to Own stores attract customers by...
Offering a lower price than other stores
Having better merchandise than other stores
Renting without a credit check and having weekly prices
If you make $3000 per month and are trying to follow a 50-30-20 budget, about how much should your needs cost you?
$1500
$900
$600
anything under $3000
If you make $3000 per month and are trying to follow a 50-30-20 budget, about how much should your wants cost you?
$1500
$900
$600
anything under $3000
Ryan would like to save 15% of his take-home pay towards retirement. How much should he save each month if he makes $5,000 each month?
$750
$75,000
$1125
$75
What is net income?
No income
portion of income not spent on bills
portion of income that you take home after taxes and deductions.
portion of income that you make before taxes and deductions
Putting money for yourself aside before paying bills
Do It Yourself
Pay Yourself First
Your budget should include..
Any expenses you expect to have as well as any savings you want to put away
Only your needs
Only what your spent last month
72% of $850 is ...
$612
$640
$527
$776
If you are interested in getting government assistance in paying your bills and getting food...
You need to find an aid office and make an appointment
You can apply online and track your benefits all in one place on their website
You will need to apply to many different agencies in different places
You will be asked to provide proof of income and expenses to receive food assistance from the state.
True, because they want to make sure that you are truly in need.
False, because that would violate your right to privacy.
To qualify for most forms of government aid, you need to be able to prove that you need it.
True
False
One way to make "pay yourself first" easier is ...
Have the payment taken out of your account automatically.
Wait until the end of the month and save what is left
Put your spare change in a jar every day
When you are much older you will probably pay more for the things in your life than you do now. This is due to..
Inflation
Interest rates
Taxes
401K
If you made $2760 last month and spent $2880, then you..
Have some extra you can save.
Did a good job balancing your budget
Overspent
When you get a paycheck, it is usually for less than you thought it would be. This is due to...
Taxes
Inflation
Interest rate
Theft
If you have a bank account, the best way to get paid from your job is..
Direct deposit
have a store give you cash
paper check
If you pass away, your money and property...
will be taken by the government
will be given to whoever you have said in your will
Federal tax is charged at a fixed rate for all incomes
False
True
State of Michigan tax is charged at a fixed rate for all incomes
False
True
If you make less than $13850 in 2023 you will not owe any federal tax.
True
False
You need to include wants in your budget
True
False
To live a healthy financial life, you should only pay for needs, never wants.
True
False
What is Net pay?
Your Gross pay + any taxes you owe
Your Gross pay - cost of school clothes
Your Gross pay + lunch money
Your Gross pay - your deductions
What is a salary?
a fixed regular amount based upon an agreed amount between the employer & employee
any amount of money subtracted for your check
the time period in which an employee worked and is being paid for.
explains how much you earned, how much you pay in taxes, and other monies that were deducted.
What is Gross Pay?
any amount of money subtracted for your check
the amount you receive AFTER all deductions are made from your total earnings
the total amount of your pay, BEFORE deductions are made
What is the purpose of a paystub?
explains how much you earned, how much you pay in taxes, and other monies that were deducted
tells you how many hours you worked
it is a check
to show you the time period in which an employee worked and is being paid for
Gross income minus deductions equals your net income.
If Amorelle made $384 in gross income and her deductions are $122, what is her net income?
$506
$406
$262
$266
The amount of government assistance you might qualify for depends on the number of people in your household.
True
False
The type of education you have will determine the type of job you are qualified to get.
True
False
The amount of money that most people earn now is about the same as people earned 25 years ago.
True
False
You only need an emergency fund if you are likely to lose your job.
True
False
When it comes to emergency funds, what (a) today could (b) tomorrow.
If you have $1700 in necessary monthly expenses, how much should you aim to have in your emergency fund?
$1700
$5100-$10200
$3400-$6800
$17000
If you are able to pay your bills every month and follow a budget, why do you still need an emergency fund?
You don't
If you have an unexpected expense that has to be paid, you don't want to have to borrow or get behind on your other expenses
To pay for spring break vacation
To invest for the future
If I am trying to follow a 50-30-20 budget and I spend $930 out of $3000 on wants, am I doing OK?
Yes, you are pretty close.
No, you spent way too much.
No, You did not spend enough
An emergency fund should have 3-6 months of (a) expenses.
A(n) (a) will help you pay for necessary unexpected expenses.
Which is the best place to keep an emergency fund?
Your wallet
Under your bed
In the bank with your regular spending money
In a separate bank account
What is 15% of $5300
$795
$530
$1025
$6095
What is 50% of 3870?
1435
1935
1730
This is a somewhat rare job benefit that allows you to collect a check every month when you retire.
Pension
401K
Paid leave
Family medical leave act
This is a common job benefit that allows you to invest some of your money in a retirement account with tax benefits. Your job may also add some money to this fund.
Pension
401K
Paid leave
Family medical leave act
If you contribute $4000 to your 401K and your company has a 50% match, how much will be put into your account?
$4050
$6000
$8000
$4000
Your large workplace must provide you with health insurance if you are a full time worker, but may ask you to help pay for it.
True
False
If you are an employee, your work is required to take any payroll taxes you may owe out of your paycheck.
True
False
If you are lifting some boxes to a high shelf and they fall and injure you, you can file a workers comp claim to pay your medical bills and pay for any work you had to miss.
True
False
If you are climbing on a high shelf to hide from your boss, and you fall and injure yourself, you can file a workers comp claim to pay your medical bills and pay for any work you had to miss.
True
False
This is intended to keep your spending in line with your needs and goals and prevent you from running out of money.
Budget
Emergency fund
Pension
401K
If I spend 85% of my income on needs...
I will have a lot less to spend on wants and savings.
I will be following a good budget
I can spend more on wants too
I won't be able to have an emergency fund
If I am following a 50-30-20 budget and I make $4500 per month, about how much should I be spending on savings?
$900
$500
$2250
$200
