WorksheetsUnit 3- EPF test review
Total questions: 24
Worksheet time: 12mins
What does it mean to "pay yourself first?"
Set aside some fun money in each month's budget so you can enjoy yourself
Auto-deposit a set amount of money into savings after each paycheck so that you don't spend all your income
Be self-employed, so that you don't have a boss and get to keep all income from your business for yourself
Do all of your budgeting at the beginning of the month, rather than at the end
Which of the following situations is an example of net pay?
Brian multiplies his hourly wage by his total hours worked
Timothy multiplies his hourly wage by his total hours worked then subtracts taxes and deductions
Helene multiplies her hourly wage by her total hours worked then subtracts taxes, deductions, and budgeted needs
Why is it important to create a budget?
A budget is a necessary to qualify for loans and credit cards
A budget makes filing your taxes faster and simpler
A budget will help you save money and prioritize your spending
A budget will guarantee you have enough money saved for college so you won't need loans
If you are following a 50/30/20 Budget, what item falls into the 20 category?
Wants
Saving
Fixed costs
variable costs
Why is it important to budget using your net pay, rather than your gross pay?
Your net pay will be higher, giving you more spending money each month
Your net pay will account for all the taxes and deductions that are removed each paycheck
Net pay is better for teenagers and young adults, whereas gross pay pertains to adult earners
Your total tax bill will be lower if you budget using your net pay
If you are trying to substantially reduce the amount you spend on food, you should try...
Drinking more coffee and soda so you are not as hungry for food
Dining at restaurants more often so you don't waste water doing dishes
Eating way more snacks on the go and way fewer meals at home
Cooking your own food at home for as many meals as possible
For most Americans, which budget expense category is largest?
Housing
Food
Transportation
Clothes
You're considering moving into a 4-bedroom apartment with 3 roommates rather than living on your own post-college. Which of your expenses would likely DECREASE by having roommates?
Renters insuance
Cell phone bill
Internet bill
Student loan payment
How is gross pay different than net pay?
Gross pay is for hourly workers, while net pay is for salaried employees
Gross pay is always lower, while net pay is always higher
Gross pay is the total you earned, while net pay has taxes deducted
Gross pay is used for spending, while net pay is used for budgeting
Which one of these expenses most likely represents a VARIABLE cost in someone's budget?
Electricity bill
Rent
Car insurance premium
Student loan payment
What action corresponds to the advice "Pay yourself first?"
Wait until the end of the month to determine how much you have leftover to save
Set aside a fraction of your paycheck into a savings account before you start spending
Spend your regular paycheck on needs and wants but funnel any extra money into saving
Become self-employed so you're paying yourself instead of being paid by an employer
Lance is at the grocery store and has three options for buying boxed mac and cheese: 1 box for $1.78, a 3-pack for $6, or a 4-pack for $8. Comparing unit costs, which statement is true?
The single box is the best deal
A 3-pack is the best deal
A 4-pack is the best deal
Lance will save the most if he gets one of each -- a single box, a 3-pack, and a 4-pack
While NEEDS and WANTS can vary greatly depending on the individual and their situation, which of these items would most people agree to be a NEED?
Three weeks of vacation for a corporate executive so they can unwind from work
Stylish clothes for a teenager so that they fit in with popular kids at school
A new cell phone every two years for a college student so they can keep in touch with family
Safe, reliable childcare for a single parent so they can go to work
Month after month, Jessica is overspending in her budget and decreasing her savings account balance as a result. Which action would you recommend she take immediately?
Write a new lease so she is paying 25% less in rent each month
Stop paying her credit card bill and put the money into savings
Start packing her lunch from home every day instead of dining out
Quit her job so she an look for one that pays more
If Linus is following a 50/30/20 Budget and takes home $1000 per pay period, how much is he budgeting for his WANTS?
$500
$300
$200
$1000
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
Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.
Needs, wants, savings
Savings, needs, wants
Needs, savings, wants
Wants, needs, savings
Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.
Days
Weeks
Months
Years
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?
Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods
Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses
Aunt Tina and her family have high paying jobs and don’t worry much about money
Aunt Tina only receives paper paychecks instead of direct deposit
Which of the following transactions will REDUCE your checking account balance immediately?
Writing your monthly rent check which you will mail tomorrow
Using your debit card to pay for groceries at the supermarket
Using your credit card to pay for your school books
Depositing a check at a local bank branch
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?
Wait until her monthly statement arrives so she can check to see if those withdrawals are still there
Wait a week as it is fairly common for the bank to catch mistakes like this
Check her wallet to be sure her debit card has not been stolen. If she still has it, then she should not worry
Contact her bank immediately as it appears that her account may have been hacked
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?
Your credit card company covers the cost
It is deducted directly from your checking account
Your credit card company provides you with a cash advance to cover the cost
It is deducted directly from your savings account
Fill in the blanks: Direct deposit typically refers to your ______ sending your ______ electronically to your bank account.
employer, bills
employer, paycheck
parents, allowance
state government, taxes
FDIC Insurance is...
Optional coverage consumers can purchase so that their bank deposits remain safe
Insurance bank branches can buy to protect their business against fraud and scams
Required if you want to do online or mobile banking
Protection for bank customers’ deposits up to $250,000, guaranteeing their money is still available if the bank goes out of business
