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WorksheetsUnit 4: Personal Finance
Total questions: 20
Worksheet time: 10mins
Which type of bank account is best for everyday transactions?
Checking Account
Savings Account
Money Market Account
Certificate of Deposit
Which payment option takes money out of your bank immediately?
Debit Card
Loan
Credit Card
Check
Which of the following is TRUE regarding unexpected expenses?
They should be planned for.
They usually don't affect your ability to pay bills.
They should not be included in your budget.
They usually don’t affect your budget.
Which example shows an advantage of owning a car over leasing one?
No restrictions on mileage or changes made to the car.
Smaller monthly payments and good warranty to cover repairs.
Expiring warranty means that you will get to handle repair payments.
You will drive a fairly new car for a limited period of time.
Why is insurance an important financial investment?
In cases of an accident, theft, or unpredictable events the insurance protects against financial loss.
Insurance can offer easy management of your monthly budget payments.
Co-insurance policies are the best way to invest in the stock market without risk.
Insurance offers warranties on household items not provided by the manufacturer.
Which is a positive reason for using a credit card to finance purchases?
Paying it off on time can help build your credit history.
You will get charged high interest.
You won't have to budget for your credit card expenses.
You'll be able to spend a lot of money without paying it back.
What does the W-2 form tell you?
How much you've earned and how much taxes you've paid in the last year.
When to file your tax return.
How often your employer will be paying you.
How much federal income tax your employer will withhold from your paycheck.
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to
consider when _____.
Choosing a credit card
Paying a financial advisor
Evaluating your credit score
Identifying financial institutions
Which of the following is a possible tax or deduction that may show up on your
paycheck?
All of these
Federal income tax
FICA
Contributions to retirement savings
What is the best way to avoid spending more than what is in your bank account?
Keep your own records to compare with your financial institution's records.
Check your bank statement once a month.
Ask your financial institution to notify you when you are close to $0 in your account.
None of these
Paying only the minimum balance on your credit card can lead to:
paying more interest
excessive late fees
increased credit score
All of these
Which of the following is a benefit of using a budget?
All of these
Helps reach short- and long-term financial goals
Helps to prioritize your spending
Helps to keep track of the money you receive
If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
Your financial institution
The local police station
No one, you can't resolve the issue
The CFPB
In addition to basic needs, what should you account for first when creating a budget?
Recurring expenses
Donations
Shopping money
Entertainment
Investing is best for ________.
long-term financial goals, like paying for retirement
keeping your money safe
short-term financial goals, like building a vacation fund.
guaranteed fast growth on your money
What is net pay? (Think DPI)
The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
Your gross pay plus any bonuses.
The amount of money you're paid before all taxes and deductions are taken out of your paycheck.
The amount of pay earned for the total number of hours worked.
An insurance deductible is:
the amount you must pay before insurance covers the rest of the bill.
the monthly premium on an insurance policy.
a commission paid to the agency for the purchase of a policy.
the contract fee applied to the monthly premium.
Making a good purchasing decision requires __________.
All of these
comparing the prices of similar items
waiting until the product is on sale, if possible
reading reviews of the product
What should you NOT use a loan to purchase?
Airline tickets to your dream vacation
A house
A car
Tuition of higher education
Which of the following should NOT be considered when setting a current budget?
Future income
Savings
Financial goals
Needs & wants
