WorksheetsPersonal Finance Unit 2 Review
Total questions: 47
Worksheet time: 24mins
Name
Class
Date
1.
1. Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?
a)
Dining out at local restaurants
b)
Loan payment on a new car
c)
Expenses for new clothes
d)
Postponing a purchase for a big-screen TV
2.
2. You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?
a)
6 months
b)
1 year
c)
2 years
d)
3 years
3.
3. If you are trying to substantially reduce the amount you spend on food, you should try...
a)
Cooking your own food at home for as many meals as possible
b)
Dining at restaurants more often so you don't waste water doing dishes
c)
Eating more snacks on the go and way fewer meals at home
d)
Drinking more coffee and soda so you are not as hungry for food
4.
4. Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?
a)
Average rent for an apartment
b)
Food and grocery store options in the area
c)
Employment opportunities
d)
Average cost of Uber, Lyft, or taxi fare
5.
5. Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?
a)
There are several public transportation routes between Greg's apartment and work
b)
The cost of public transportation is less than Greg’s monthly car payment
c)
Greg’s company covers half the cost of his monthly public transportation pass
d)
Using public transportation, Greg’s commute to work one-way is two hours
6.
6. Which of these boxes of cereal has the LOWEST unit price?
a)
Cereal A, which costs $3.20 for a 16 oz. box
b)
Cereal B, which costs $5.00 for a 32 oz. box
c)
Cereal C, which costs $2.50 for a 10 oz. box
d)
Cereal D, which costs $4.50 for an 8 oz box
7.
7. Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?
a)
His gross pay is $2,500 and net pay is $3,000
b)
His gross and net pay are $3,000
c)
His gross and net pay are $2,500
d)
His gross pay is $3,000 and net pay is $2,500
8.
8. You are putting together your first post-graduation budget. Your net pay is $2,500 per month and you estimate that your monthly expenses will be $2,625. How would you describe your budget?
a)
You have a surplus of $125
b)
You have a deficit of $125
c)
You have a deficit of $2,625
d)
You have a surplus of $2,500
9.
9. You are interested in renting an apartment after graduating college. You meet with the landlord and complete the application. All of the following may need to be provided when you sign your lease EXCEPT
a)
Proof of employment
b)
A bank account
c)
First and last month's rent
d)
A security deposit
10.
10. All of the following are good budgeting strategies if you want to save money at the grocery store EXCEPT:
a)
Focusing on unit price when comparing similar products
b)
Building a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat
c)
Focusing only on the price when comparing similar products
d)
Preparing a grocery list before you go to the store and avoiding buying items that aren’t on the list
11.
11. Which description is most accurate for a Zero-Based Budget?
a)
You put every dollar of your net pay into a budget category each month
b)
You spend your checking account balance down to $0 every month
c)
You spend your saving account balance down to $0 every month
d)
You pay every one of your debts down to $0 every month
12.
12. For two months in a row, Aaron realizes he has a net loss of roughly $175. Which of these options makes the most sense for him to fix his problem?
a)
Cancel one of his streaming video subscriptions and go out to dinner three fewer times each month with friends
b)
Start paying just the minimum monthly payment on his student loan and credit card debt, instead of the extra he's been contributing
c)
Contribute $100 less to savings each month and $75 less to his retirement fund
d)
Sell his current car and get a less expensive vehicle
13.
13. You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely NOT decrease by having roommates?
a)
Groceries and eating out
b)
Rent
c)
Cell phone bill
d)
Furniture
14.
14. Emily does all her grocery shopping at organic markets and has a monthly grocery bill of $325. Charles says that Emily is wasting her money on wants instead of focusing on needs. He buys in bulk, uses coupons, and shops at Save-More for a monthly bill of $195. Who's budgeting correctly for food?
a)
Emily, because she is focusing on her health, which will have a guaranteed payoff in the long run
b)
Charles, because he's taking efforts to save money by focusing on his needs only
c)
Both, because needs vs wants are determined on an individual basis
d)
Neither, because they should meet in the middle somewhere. Charles should focus more on health, and Emily should cut her spending.
15.
15. You overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT:
a)
A budget can help you identify any bad spending habits
b)
Using a budget can allow you to work towards your financial goals
c)
Having a budget can help you create an emergency fund
d)
Having a budget is a requirement for obtaining a mortgage
16.
16. Which one of these expenses most likely represents a VARIABLE cost in someone's budget?
a)
Electricity bill
b)
Rent
c)
Car insurance premium
d)
Student loan payment
17.
17. What action corresponds to the advice "Pay yourself first?"
a)
Wait until the end of the month to determine how much you have leftover to save
b)
Set aside a fraction of your paycheck into a savings account before you start spending
c)
Spend your regular paycheck on needs and wants but funnel any extra money into saving
d)
Become self-employed so you're paying yourself instead of being paid by an employer
18.
18. Now that Sanjana is done with college, she is trying to decide whether or not she should buy a new laptop for herself. She has made a preliminary list of questions she can ask herself to determine if the new laptop is a need or a want. Which of the following questions would you ELIMINATE from this list?
a)
Can I afford this laptop right now?
b)
Is this the right time to buy this laptop or will it likely be on sale later?
c)
What model laptop is trendy right now with people my age?
d)
How am I going to pay for this laptop? If I have to charge it or take out a loan, can I afford the monthly payments?
19.
19. One way the grocery store tricks you into spending more money than you budgeted for is...
a)
Being open early in the morning and late at night
b)
Paying their cashiers and baggers more
c)
Putting high priced items at eye level and lower cost items above or below eye level
d)
Accepting digital and print coupons
20.
20. Which statement accurately describes how the 50/20/30 Rule would break down your take-home pay?
a)
50% on wants, 20% on saving, and 30% on needs
b)
50% on saving, 20% on needs, and 30% on wants
c)
50% needs, 20% on saving, and 30% on wants
d)
50% on saving, 20% on wants, and 30% on needs
21.
21. Explain how setting a SMART financial goal can help you create a budget.
4 lines
22.
22. You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck." What does Aunt Tina mean by that?
a)
Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods
b)
Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses
c)
Aunt Tina and her family have high paying jobs and don’t worry much about money
d)
Aunt Tina only receives paper paychecks instead of direct deposit
23.
23. You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?
a)
Your credit card company covers the cost
b)
It is deducted directly from your checking account
c)
Your credit card company provides you with a cash advance to cover the cost
d)
It is deducted directly from your savings account
24.
24. Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
a)
Wait until her monthly statement arrives so she can check to see if those withdrawals are still there
b)
Wait a week as it is fairly common for the bank to catch mistakes like this
c)
Check her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry.
d)
Contact her bank immediately as it appears that her account may have been hacked
25.
25. Which of the following transactions will REDUCE your checking account balance immediately?
a)
Writing your monthly rent check which you will mail tomorrow
b)
Using your debit card to pay for groceries at the supermarket
c)
Using your credit card to pay for your school books
d)
Depositing a check at a local bank branch
26.
26. FDIC Insurance is...
a)
Optional coverage consumers can purchase so that their bank deposits remain safe
b)
Insurance bank branches can buy to protect their business against fraud and scams
c)
Required if you want to do online or mobile banking
d)
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
27.
27. How often do customers typically receive a bank statement for their checking account?
a)
Daily
b)
Weekly
c)
Monthly
d)
Annually
28.
28. Give one example of each of the following types of expense: 1) Fixed 2) Variable 3) Unexpected (Whammy!)
4 lines
29.
29. Choose two types of depository institutions. (HINT: There are more than 2.)
a)
Commercial Bank
b)
Credit Union
c)
Online Bank
d)
Mortgage Company
e)
Credit Bank
30.
30. Interest is the price paid for using someone else's money. It can be good or bad.
a)
True
b)
False
31.
31. You are at the checkout counter at the local supermarket and use your credit card to pay for your groceries. Where does the money for this purchase come from?
a)
Your credit card company covers the cost
b)
It is deducted directly from your checking account
c)
Your credit card company provides you with a cash advance to cover the cost
d)
It is deducted directly from your savings account
32.
32. List 3 features provided by depository institutions (other than savings and checking accounts).
4 lines
33.
33. Fees charged if you withdraw more money from your account than is available.
a)
Overdraft Fee
b)
ATM fee
c)
Minimum Balance Fee
34.
34. Fee charged if you have less in your account than the bank's requirement.
a)
Overdraft Fee
b)
ATM fee
c)
Minimum Balance Fee
35.
35. Fee charged for using an ATM that belongs to another depository institution.
a)
Overdraft Fee
b)
ATM fee
c)
Minimum Balance Fee
36.
36. Which is more important, Income or Net Worth?
a)
Income
b)
Net Worth
37.
37. How do you calculate net worth?
a)
Assets + Liabilities
b)
Assets - Liabilities
38.
38. Which of the following is NOT an example of an asset?
a)
Cash in your wallet
b)
Car
c)
Credit Card
d)
Retirement Investment
39.
39. What is a liability?
a)
Everything a person owns with monetary value
b)
A debt or obligation owed to others
c)
The measure of financial wealth
40.
40. What does it mean when you have a net loss?
a)
You have more expenses than you have income.
b)
You have more income than you have expenses.
41.
41. What is the difference between earned and unearned income?
a)
Earned income is from the government and is usually temporary. Unearned income is received from sources other than employment
b)
Earned income is any money earned from work. Unearned income is received from sources other than employment such as investments.
c)
Earned income is any money received from work. Unearned income is money from the government and is usually temporary.
42.
42. Gross pay is the amount you see on the check/in your bank account from your employer.
a)
True
b)
False
43.
43. Payroll deductions (Federal income tax, state income tax, medicare, social security, etc. ) are found in the expenses portion of the income and expense statement.
a)
True
b)
False
44.
44. Pick the three different types of check endorsements.
a)
Special
b)
Blank
c)
Restrictive
d)
Normal
e)
Forwarded
45.
46. Why is it important to fill out a checkbook register or follow your transactions closely online?
4 lines
46.
47. What should the balance in your checkbook register match at the end of the month?
a)
Bank Statement Balance
b)
Net Worth
c)
Net Loss or Net Gain
d)
Statement of Financial Position
47.
48. Why would transactions completed on the last day of the month be “outstanding” on the bank statement?
a)
The bank declined them
b)
They are standing outside the bank
c)
There isn't enough money in your account to cover them
d)
They have not been cleared through by the bank yet.
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