WorksheetsPersonal Finance FINAL Spring 25 (F23)
Total questions: 70
Worksheet time: 36mins
Name
Class
Date
1.
What is The First Foundation?
a)
Pay cash for college.
b)
Build wealth and give.
c)
Save a $500 emergency fund.
d)
Open a checking account.
2.
Personal finance is all the financial decisions a(n) ______________ must make in order to earn, budget, save, spend, and give money over time.
a)
Individual
b)
Company
c)
Organization
d)
School
3.
A money principle to keep in mind is to live on _____________________ you make.
a)
Exactly 20% Below
b)
More Than
c)
Less Than
d)
The Same As
4.
To know your net worth, subtract your liabilities from your __________________ .
a)
Other Liabilities
b)
Net Income
c)
Previous Net Worth
d)
Assets
5.
If your assets total more than your liabilities, you will have a(n) __________________ net worth.
a)
Negative
b)
Equal
c)
Positive
d)
Unknown
6.
Personal finance is 20% ______________ and 80% ________________:
a)
Head Knowledge; Behavior
b)
Behavior; Head Knowledge
c)
Cause; Effect
d)
Reactions; Behaviors
7.
To gain an understanding of your personal finances, you should know:
a)
Your financial goals.
b)
Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals
c)
How much income you have.
d)
Your investment portfolio and your financial advisors’ contact information.
8.
What are the Four Walls?
a)
Utilities, college fund, restaurants, and car insurance
b)
Cell phone bill, car insurance, shelter, and money for the movies
c)
Food, utilities, transportation, and college fund
d)
Food, utilities, shelter, and transportation
9.
How often should you create a budget?
a)
Daily
b)
Weekly
c)
Monthly
d)
Biannually
10.
A common misconception is that budgeting will keep you from having fun, when in reality a budget :
a)
Gives you permission to spend
b)
Restricts your fun completely
c)
Means there are no rules—you are free to use your money however you want
d)
Adds more stress to your life
11.
What does a budget show you?
a)
How much money you spent last month
b)
How much money you need to earn
c)
How much money you plan to come in and go out during the month
d)
How much you need to save
12.
Why is tracking your expenses throughout the month important?
a)
It really isn't that important in the long run.
b)
It helps you pull money from your savings to spend in other categories.
c)
It gives you insight into whether you're sticking to the budget you set.
d)
It allows you to delete categories you don't like.
13.
When is the right time to start creating and living by a budget?
a)
When you decide it's time to buy a car
b)
Once you have a job with an income
c)
When you start researching colleges and the costs that come along with it
d)
Right now - it's never too early!
14.
Can you describe what makes a budget zero-based?
a)
Yes
b)
No
c)
I need to study this
15.
The best way to build wealth is to start investing early. According to Ramsey, you should start investing money:
a)
As soon as you have extra cash
b)
When the stock market is performing really well
c)
Once you're out of college, living debt-free, and have 3–6 months of living expenses saved
d)
Once you have a fully funded emergency fund
16.
The best way to build wealth is to start investing early. According to Mrs. Keller, you should start investing money:
a)
As soon as possible, even if the investment starts small
b)
When the stock market is performing really well
c)
Once you're out of college, living debt-free, and have 3–6 months of living expenses saved
d)
Never
17.
__________________ is a millionaire's best friend.
a)
Profit Sharing
b)
High Returns
c)
Compound Growth
d)
Accrued Interest
18.
Part of making a plan to _______________ involves searching for scholarships, saving, and talking with your family about what kind of financial help you'll get.
a)
Get good grades
b)
Take out a student loan
c)
Live in a dorm
d)
Pay cash for college
19.
It takes the average person _______________ to pay off their student loan debt.
a)
20 Years
b)
10 Years
c)
5 Years
d)
2 Years
20.
A two-year degree with specialized training, a flexible schedule, and lower educational costs is called a(n) _____________________.
a)
Graduate degree
b)
Bachelor's degree
c)
Associate degree
d)
Community college degree
21.
What is The Fourth Foundation?
a)
Build wealth and give.
b)
Save a $500 emergency fund.
c)
Pay cash for your car.
d)
Pay cash for college.
22.
The average college student in America graduates with ____________ in student loan debt.
a)
$35,000
b)
$5,000
c)
$10, 000
d)
$20,000
23.
You can save thousands of dollars by spending the first ____________________ at a(n) _________________________.
a)
two years; name-brand school
b)
year; out-of-state school
c)
Two years; local community college
d)
Part of your tuition; traditional four-year school
24.
23. Most employers care more that you're educated in your field than they care about _______________________.
a)
what college you went to
b)
your future career plans
c)
your work ethic
d)
if you're good at your job
25.
Insurance helps you transfer the ________ from your bank account to the insurance company.
a)
Risk
b)
Money
c)
Insurance
d)
Health
26.
If you're young and healthy, medical insurance is not as necessary.
a)
True
b)
False
27.
Life insurance guarantees your loved ones get a certain amount of money when you ______________.
a)
pass away
b)
turn 18
c)
get injured
d)
move out of the house
28.
_______________ will provide money to replace lost income for years—even up to retirement.
a)
Long-term disability
b)
Identity theft protection
c)
Necessary insurance
d)
Short-term disability
29.
Renters insurance will cover you and your belongings if there is ever a fire, theft, or vandalism.
a)
True
b)
False
30.
Through the Affordable Care Act, you can stay on your parents' health insurance until:
a)
You move out of the house
b)
You get married
c)
You turn 18 years old
d)
You turn 26 years old
31.
Your ____________________ has all the information you'd need in case of an accident.
a)
Local Police Station
b)
Liability Insurance
c)
Insurance Card
d)
Glove Box
32.
A high-deductible health plan with lower monthly premiums is a good option for:
a)
College students
b)
Young, healthy people
c)
People who tend to get sick often
d)
The elderly
33.
People who rely on you financially are called your:
a)
Family
b)
Beneficiaries
c)
Dependents
d)
Death Benefits
34.
What is a deductible?
a)
The amount of money you pay for your insurance policy every month.
b)
When you report an incident and ask to be compensated for the cost.
c)
The amount you have to pay before the insurance company will make a payment.
d)
The amount of money the insurance company agrees to pay.
35.
Getting good grades, driving safely, and driving an older car are examples of ways you can:
a)
Pass your driver's ed test
b)
Raise your monthly premiums
c)
Avoid getting into an accident
d)
Lower your auto insurance costs
36.
What is wise to have because even if you're a great driver, there are plenty of people who aren't.
a)
hefty savings account
b)
Liability insurance
c)
An SUV
d)
Health insurance
37.
The amount of money the insurance company agrees to pay for an incident is called:
a)
Co-Pay
b)
Deductible
c)
Claim
d)
Coverage
38.
__________________________________ will cover you if someone steals your personal information.
a)
Short-term disability
b)
Supplemental insurance
c)
Identity theft protection
d)
Long-term care insurance
39.
Withholdings and deductions are :
a)
Money that the government gives back
b)
Categories of a good budget
c)
Expenses that are taken out of your paycheck
d)
Examples of deficit spending
40.
What does the Form W-4 estimate?
a)
How many tax returns you need to submit.
b)
How much money you'll spend in that fiscal year.
c)
How much income you should be making.
d)
How much tax you'll owe based on your personal situation.
41.
Every American who earns an income must file a _______________ each year.
a)
Tax deduction
b)
Paycheck
c)
Tax extension
d)
Federal tax return
42.
When you make __________ money, you will pay ___________ in taxes.
a)
more, more
b)
more, less
c)
less, more
d)
more, the same amount
43.
A fixed, annual rate of pay that doesn't change by working more or fewer hours is called:
a)
Commission
b)
Passive Income
c)
Hourly Wages
d)
Salary
44.
What is the main IRS form that most Americans use to file their taxes?
a)
Form 1099-DIV
b)
Schedule C
c)
Form I-9
d)
Form 1040
45.
There are two general types of taxes. Taxes on the money you ___________ and taxes on the money you ____________________.
a)
Earn; spend
b)
Have; want
c)
Budget; don't budget
d)
Give; save
46.
The deadline for filing your income tax return usually falls on:
a)
April 15
b)
October 13
c)
August 15
d)
July 4
47.
Getting a big tax refund is not necessarily a good thing.
a)
True
b)
False
48.
What is the total tax a person or business has to pay called?
a)
Tax Liability
b)
Tax Day
c)
Income Taxes
d)
Tax Return
49.
Can you explain the difference between gross income and net income?
a)
Yes
b)
No
c)
I need to study this
50.
It's best to develop good _______________________ now instead of waiting until you're on your own to figure it all out.
a)
Friendship
b)
Real Estate Investments
c)
Diet and Exercise Plans
d)
Money Habits
51.
Your rent payment should total no more than ______ % of your take-home pay.
a)
50
b)
15
c)
75
d)
25
52.
A house is an asset that typically will __________________ value over time.
a)
Increase in
b)
Depreciate in
c)
Decrease in
d)
Stay the same
53.
You need to be completely out of debt, have a fully funded emergency fund, and have saved enough cash for a down payment before you:
a)
Sell a house
b)
Rent a house
c)
Lease a house
d)
Buy a house.
54.
No matter what path you choose to take after high school, the money principles stay the same. What are they?
a)
Save, budget, stay out of debt, live on less than you make, and be generous.
b)
Invest before anything else and budget if you have time.
c)
Only use a debit card for purchases, rentto-own loans are king, and don't open a savings account.
d)
Live on more than you make and debt dominates all.
55.
When someone spends so much of their income on the costs of homeownership that they struggle to reach their other financial goals, they are:
a)
Rent Poor
b)
Wise Homeowners
c)
House Poor
d)
Wealthy
56.
Equity is the difference between what you still owe on your home and what it is worth. A. True B. False
a)
True
b)
False
57.
What is The Fifth Foundation?
a)
Pay cash for college.
b)
Save for retirement.
c)
Build wealth and give.
d)
Pay cash for your home.
58.
When you invest in a mutual fund, you are contributing to a pool of money that will be:
a)
Put into a separate savings account for your children to inherit someday
b)
Taxed based on each individual investor's annual salary
c)
Invested in a mix of stocks, bonds and money market accounts
d)
Given to hundreds of local charities in your area
59.
Diversification reduces your _________________ by using a mix of investment types in your portfolio.
a)
Mutual Funds
b)
Risk
c)
Retirement Funds
d)
Income
60.
Investing your money earns you more money because of:
a)
Short-term savings
b)
Compound growth
c)
Mortgage payments
d)
Checking accounts
61.
When riding the highs and lows of the stock market, remember:
a)
It will level out, so stick with it - be patient!
b)
It's unpredictable and risky. You should pull your money out and steer clear.
c)
The S&P isn't a reliable source when it comes to navigating the growth and decline of stocks.
d)
You can't go wrong when investing money into stocks.
62.
Social Security benefits are meant to _________________ (of) your income.
a)
Fully Replace
b)
Decrease
c)
Tax 100%
d)
Replace 40%
63.
It's okay to borrow money from your retirement account, but don't borrow money to invest in it.
a)
True
b)
False
64.
Mutual funds are less risky and can outperform the stock market because:
a)
They invest in several companies at once.
b)
They're fully liquid.
c)
They guarantee a high rate of return.
d)
They're not diversified.
65.
The three components of compound growth are money, time and ______________________.
a)
Rate of return
b)
Retirement
c)
Investments
d)
A large paycheck
66.
_________________ is key when it comes to compound growth.
a)
Time
b)
Money
c)
Attitude
d)
Roth IRA
67.
When using a Roth plan, you invest your money after paying taxes, and the investment grows tax-free.
a)
True
b)
False
68.
Why might someone choose to diversify their investments?
a)
To keep the risk as high as possible so the reward is equally high.
b)
There isn't a good enough reason to diversify your investments.
c)
To balance high-risk investments with more steady and predictable ones.
d)
To keep them from getting bored with one form of investment.
69.
Can you list the five foundations in order?
a)
Yes
b)
No
c)
Not without the sign on Mrs. Keller's Class Info Wall
70.
What is one thing you learned this semester?
4 lines
100 %
