WorksheetsPersonal Finance Test Review 1
Total questions: 41
Worksheet time: 1hrs 19mins
Putting money into a savings account before paying expenses.
Pay yourself first
Pay yourself last
Budgeting
Goal setting
What is inflation?
High interest rates
High Debt
A combo of prices going up and money value going down
The same as Investment
How does the 50-20-30 rule distribute your income?
50% necessities, 20% flexible spending, 30% savings and debt
50% necessities, 20% savings and debt, 30% flexible spending
50% flexible spending, 20% savings and debt, 30% necessities
50% savings and debt, 20% flexible spending, 30% necessities
Interest earned on both the principle amount and any interest already earned.
Simple Interest
Deposit
Interest Rate
Compound Interest
Money set aside for unanticipated expenses or loss of income
Disposable Fund
Sinking Fund
Emergency Fund
Savings Fund
A type of savings with a fix interest rate and maturity date, holding the savers's money until it matures. If withdrawn before that time,the bank imposes a penalty fee.
Savings Account
Certificate of Deposit (CD)
Checking Account
Money Market Account
Automatic electronic deposit of net pay into a employees;s designated bank account
Direct Deposit
Online Savings Account
Annuity
Certificate of Deposit
an independent agency created by the federal government insuring deposits in US banks against failure
Federal Deposit Insurance Corporation
Financial Depository Insurance Company
National Collapse Urgency Agency
National Credit Union Association
Inflation is...
The rate at which the FED is printing money
A decrease in the cost of living.
The rate at which the price of goods increases and consumer purchasing power decreases over time
The rate at which the price of goods decreases and consumer purchasing power increases over time
A SMART goal is specific, measurable, attainable, realistic and time sensitive. Which of these would be an example?
I will save $2 of my $5 allowance each week for 10 weeks and use $30 of my savings to buy the $50 video game I want.
I will be a millionaire by age 25.
I will use $2 each week to buy lottery tickets to get enough money to buy a car next year.
I will save all the money I earn to travel some day.
Juan saved $1,000 from his summer job cleaning pools. Which of these savings vehicles would work best for him if he doesn't need access to the money for a number of years AND wanted to earn the highest interest rate?
Regular savings account
Money Market account
Checking account
Certificate of Deposit
Which of the following is an effective strategy for personal saving?
Wait until the end of the month and save whatever is left in your checking account
Save a certain percentage of each paycheck and deposit it directly into a savings account
Cover all of your wants and needs and save whatever is left over
Take out a payday loan so you can save before you receive your paycheck
Joelle wants to have an emergency fund to cover 6 months of her expenses. Her monthly gross pay is $4,000 and her monthly expenses are $2,000. If she plans to save 10% of her gross pay each month, how long will it take her to build her emergency fund?
3 months
9 months
24 months
30 months
You want to take earnings from your part-time job to pay for a new laptop. Your monthly take-home pay is $500 and the laptop costs $1,200. What percentage of your pay do you need to save in order to buy the laptop in 12 months?
5%
10%
15%
20%
Which of these account types allow you to write checks from the account?
Checking accounts only
Checking accounts and online savings accounts
Checking accounts and money market accounts
Checking accounts, online savings accounts, and money market accounts
Fill in the blanks with the correct responses. If you follow the 50-20-30 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 20% of your monthly income toward _____________, and 30% of your monthly income toward ______________.
Needs, wants, savings
Savings, needs, wants
Needs, savings, wants
Wants, needs, savings
Which statement best describes the difference between saving and investing?
Saving is done with small amounts of money, and investing is done with large amounts of money
Saving protects your money from inflation while investing does not protect your money from inflation
Saving is for low-income people, while investing is for rich people
Saving goes into an FDIC insured bank while investing typically goes into stock or bond markets
Which represents the best time to start saving for your retirement?
As soon as you graduate and have your first full-time job
Right after you pay off your student loans
Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage
At age 45, so you have exactly 20 years until retirement
Why is investing a better option than saving when it comes to planning for retirement?
Investing usually has lower interest rates, so it offers a better deal
Investing is guaranteed to produce the large sum of money needed for a happy retirement
Investing begins as soon as you open a bank account, so you can start early in life
The stock market historically has returns higher than the rate of inflation, so your money can actually grow
What is meant by the term “impulse shopping?”
Comparison shopping for more expensive items while doing less work to compare cheaper products
Buying an item without giving it much thought, maybe because it’s on sale or you see it and simply love it
Using your emergency fund, rather than your checking account, to make a purchase
Shopping online instead of in stores
Which of these is an example of "Keeping up with the Joneses?"
Buying new sneakers the day they come out, because you know others in your class will have them, too
Applying to the top colleges, to see if you'll get accepted & what financial aid packages they'll offer
Saving for retirement as soon as you graduate college, to take advantage of compounding interest
Buying plane tickets for vacation well in advance so that you'll benefit from cheaper prices
A relatively small amount of money lent at a high rate of interest on the agreement that it will be repaid when the borrower receives their next paycheck.
savings account
interest rate
payday loan
Rule of 72
What percent of your income should you be saving?
10%
20%
25%
30%
Mobile banking allows you to
Use your computer to complete banking transations
Use your cell phone to access or receive account information
Make purchases or payments with your cell phone
Travel from bank to bank to complete tracsations
When you take more money out of your account than you have in it, that is called:
A debit transation
Balancing your account
An overdraft
When A monthly service fee
Hailey's bank is FDIC Insured. What is the benefit to Hailey?
She can use her bank card at any bank, nationwide, without incurring a fee
If Wanda’s bank goes out of business, she will receive all of her money back from her accounts up to $250,000
She will receive a debit card and a checkbook she can use to make purchases
If she makes a purchase with her debit card and the item breaks, she’ll get a full refund
When an employee's paycheck is automatically added to their bank account
Direct Deposit
Automatic Payment
Debit Card
FDIC
Type of savings plan where money is left on deposit for a stated period of time.
Certificate of Deposit (CD)
Money Market
Savings Account
Checking Account
Type of check endorsement that is "for deposit only"
Blank Endorsement
Restrictive Endorsement
Special Endorsement
Report that accounts for the differences between bank statement and check register.
Account Reconciliation
Check Register
Bank Statement
Deposit Slip
What does the S stand for in SMART GOALS
Specific
Special
Standard
Sports
Timely - the goal must be reached within a specific length of time.
Why is it important that your goals have deadlines?
You need details.
So you can tell if you have accomplished it or not.
So you know what you are trying to accomplish.
So you will actually work towards achieving it in a timely manner.
Why is "I will eat healthy this week" not a SMART goal?
Not attainable.
Not time-bound.
Not measurable or specific.
It is a SMART goal.
Setting goals will help you...
Identify some specific steps to take to help work toward goals
be the first in line to lunch
help you make the basketball team
fail science for the 2nd nine weeks
