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WorksheetsPersonal Finance Final
Total questions: 72
Worksheet time: 55mins
A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending
Thumb's Rule of Saving
50-20-30
50-30-20
Fobres Saving Structure
A bank product that earns interest on a lump-sum deposit that's untouched for a predetermined period of time
Certificate of Deposit
Bond
Stock
Certificate of Death Benefit
Reinvesting earned interest back into the principal to allow money to grow exponentially over time
Simple Interest
Compound Interest
Maintenance fees
Stocks and Bonds
An automatic electronic deposit of net pay to an employee's designated bank account
Direct Deposit
Cashier's Check
Check
CD
Money set aside for unanticipated expenses or loss of income
Emergency Fund
Savings Account
Checking Account
Direct Deposit
The government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor
Federal Deposit Insurance Corporation (FDIC)
IRS
MMA
FBI
Using most or all of your monthly income to cover your monthly expenses, leaving little to no spare cash for saving or investing
50-20-30
Living Paycheck to Paycheck
Impulse Buying
LIFE
A monthly fee that some banks charge to provide access to checking or savings accounts
Maintenance Fees
Taxes
Interest
Overdrawn Fee
A certain amount of money that must be kept in an account as required by that particular financial institution
Minimum Balance
Saving Account
High Interest Account
Bouncing a Check
A type of savings account that may allow debit card and check writing privileges
Money Market Savings Account
ATM
Checking Account
CD
Definition
A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases
Pay Yourself First
Paycheck to Paycheck
50-20-30
Direct Deposit
A popular trick to find out how many years it will take your money to double depending on what interest rate you are receiving
401K
Rule of 72
Rule of 48
Rule of 365
A fee that is charged if the number of withdrawals from your savings account exceeds the federal limit, which is six free withdrawals and transfers per month
Transaction Fee
Maintenance Fee
Interest
Compound Interest
The cost for one item or measurement that allows it to be easily compared to other products to evaluate which is a better deal
Unit Price
Discount Price
Sales Price
Wholesale Price
A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth
Wealth
Financial Health
Credit Score
MMA
A yearly fee that may be charged for having a specific credit card, independent of how you use the card
Annual Fee
Service Charge
Overdraft Fee
Sales Tax
The cost you pay each year to borrow money, including fees, expressed as a percentage
APR
FDIC
FICA
Payday Loan
The act of transferring debt from one credit card account to another, usually for a fee
Balance Transfer
Credit Card
Cash Advance
Mortgage
A credit card service that allows cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee
Cash Advance
Payday Loan
Deposit
Withdrawl
A credit card benefit that pays the cardholder a small percentage of their net expenditures, often as cash, payment toward their balance, reward points, travel miles, or gift cards
Cash Back
United Air miles
Money back Guarantee
Gift Cards
A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment
Consolidation Loan
Home Loan
Car Loan
Time share Loan
The maximum amount that may be borrowed on a credit card
Credit Limit
Overdraft Protection
Balance
APR
A nonprofit financial institution that is owned by its members and organized for their benefit
Credit Union
Bank
A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan
Buyer's fee
Down Payment
Dealer's Fee
The number of days between a borrower's statement date and when payment is due, often without accruing interest
Grace period
Deferred Payment
30 days
Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal
Installment Loan
Pat day Loan
Car Loan
Home Loan
The amount you owe as the cost of borrowing money
Interest
Service Fee
Balance
A small loan, offered through a business, lent at a high interest rate, and meant to be paid as soon as you receive your next paycheck
Bank Loan
Payday Loan
Title Loan
Credit card
Original amount of money borrowed, separate from interest or fees
Principal
Principle
The amount of time you have to repay your entire loan
Term
2-5 years
10-30 years
Monthly payments
What is a benefit of going to college and having a college degree?
Lower lifetime earnings
Lower interest rates on future loans
Expanded professional and social netowrk
Guaranteed starting salary of $50,000 after graduation
All of the following are costs of going to college EXCEPT...
Tuition and fees
Room and board
Textbooks and school supplies
Scholarships and grants
Which is TRUE about sticker price and net price? (hint: choose 2 correct answers)
Net price is the published cost of going to a school
Sticker Price is the published cost of going to a school
Net price is the sticker price minus scholarships & grants
Sticker price is the net price minus scholarships & grants
How do scholarships and grants differ?
Scholarships are need-based; grants are merit-based
Grants are private forms of aid; scholarships are federal
Grants are need-based; scholarships are merit-based
They're not different; they are one and the same
What do you need to file your FAFSA if you're a dependent?
Just your tax forms
Your high school student ID number
Your and your parents' tax forms from 2 years priors
A pay stub if you had a job in the past year
Which is TRUE about the FAFSA?
You only need to file the FAFSA 1x in your college career
Your parents must earn below a set amount for you to apply
You need to file it at the start of every quarter/semester
There is no cost to file the FAFSA
If you select a repayment plan with a longer term for your loans...
You will have a larger monthly pyament
You will have a smaller monthly payment
You will pay less in interest
You will pay the same amount in interest
Which is TRUE about loan payments?
$ goes 1st towards the principal, then the accrued interest
Interest rate has little impact on total cost of the loan
Payments are not split between interest and principal
Interest can be added to the principal if it goes unpaid
In what order should you accept different types of financial aid?
Work-study, scholarships, federal loans, private loans
Private loans, scholarships, work-study, federal loans
Scholarships, work-study, federal loans, private loans
Scholarships, work-study, private loans, federal loans
Which of the following will DEFINITELY show up on your bank statement at the end of July? (hint: choose 2 correct answers)
Ice cream bought with your debit card on July 16th
A salad bought with cash on July 5th
A birthday check you gave to your brother on July 18th
An ATM withdrawal you made on July 21st
Mandatory government spending includes which of the following?
Infrastructure and science
Social Security and Medicare
Healthcare and military
Education and agriculture
What does the term "withholding" mean in reference to your paycheck?
The amount of your paycheck that you are NOT being taxed on
How much you are going to owe the government when you file your annual tax return
How much you earn and includes salary, bonus and commission
How much is being taken out of your paycheck for things like taxes, employer sponsored health insurance, and retirement
When do you start paying income taxes?
When you turn 18
When you get a full-time job (part-time does not count)
When you make more than the minimum income requirement
When you are notified by the IRS that you are required to pay federal income taxes
Why is it important to be extremely careful when completing your 1040 form?
Making a mistake will disqualify you from receiving future refunds
The 1040 form determines whether you owe additional taxes or are entitled to receive a refund from the government
Completing the 1040 incorrectly will mean the wrong amount of taxes will be withheld from your paychecks going forward
Mistakes on your 1040 form make you ineligible for employment during the next year
You are starting your first job and you are asked to complete some paperwork on your first day. Which form will determine how much money is withheld from your paycheck for taxes?
W-4
W-2
1099
1040
Which statement correctly describes taxable income?
Taxable income is the sum of all income a person earns
Taxable income is always equal to or greater than a person's gross income
Taxable income is gross income minus deductions and exemptions
Taxable income includes all personal expenses and investments
When determining whether you NEED to file a federal tax return, each of these questions matters EXCEPT…
How much income did you earn this year?
What type of income did you earn this year?
What state do you live in?
Are you claimed as a dependent on anyone else's tax return?
What is the name of the tax form that requires you to provide identification and proves you are eligible to work in the U.S.?
W-4
W-2
1099
I-9
When you complete your 1040 form, if you overpaid your taxes and the government owes you money, that is called a __________.
Withholding
Refund
Direct Deposit
Deduction
Jessica is 16 years old and earned $1,100 through her photography side gig. Her parents can claim her as a dependent on their tax return. All of the following statements are true EXCEPT…
Jessica is required to file an income tax return
Jessica should expect to receive a W-2 in January
Jessica is required to pay a 15.3% self-employment tax
Jessica can file her own tax return even though her parents are claiming her as a dependent
Which of the following describes what a "dependent" is for tax purposes?
A child or adult that you support financially
Someone who is temporarily disabled
An adult who financially supports you
Someone who is a full-time student under the age of 30
What is the main difference between tax deductions and tax credits?
Tax deductions are available for all taxpayers, while tax credits are only for specific groups
Tax deductions lower taxable income, while tax credits reduce the amount of tax owed directly
Tax deductions are for personal expenses, whereas tax credits can only be used for business expenses
Tax deductions and tax credits are the same; both reduce the amount of tax owed dollar for dollar
Which of the following statements about the W-2 form is TRUE?
A W-2 lists all the money you earned in cash over the last year
The total wages you earned from ALL jobs you worked in the previous year appear on ONE W-2 form
You need a separate W-2 form from EACH of your employers in order to file your taxes
The W-2 includes information about the interest you earned from your investments
How should you dry this piece of clothing if you see this symbol?
In dryer
Hang on clothes line
Drip dry
Lay flat to dry
what does this code represent
bleach
wash
dry
iron
what does this code represent
do not dry clean
do not wash
do not dry
do not bleach
what does this code represent
do not dry
do not wash
do not iron
do not dry clean
dry clean petroleum solvent only
dry clean perchlorethylene or petroleum solvent
dry clean fast
dry clean any solvent
Should you have this garment dry cleaned?
yes
no
Hand wash, do not wring, dry flat
Match the following
Taxable Income
The amount of income that is used to calculate an individual's or a company's tax liability
Gross Income
The total income earned before deductions and taxes are applied
Net Income
The income remaining after deductions and taxes are applied
Adjusted Gross Income
Gross income minus adjustments to income
Capital Gains
Profits that result from the sale of an investment or property
Match the following
FICA
A federal law that requires an employer
Medicaid
A joint federal and state program that helps with medical costs for some people with limited income and resources
Social Security
A federal program that provides financial assistance to retired or disabled individuals
Medicare
A federal health insurance program for people who are 65 or older, certain younger people with disabilities, and people with End-Stage Renal Disease
Unemployment Insurance
A state program that provides temporary financial assistance to eligible workers who have lost their job through no fault of their own
Match the following
A market in which there is increased stock trading and rising stock prices
Bull Market
Profit from the sale of an asset, such as a stock or a bond, calculated by subtracting the price you initially paid from the price you then sold it for
Capital Gain
Reinvesting earned interest back into the principal to allow money to grow exponentially over time
Compound Interest
The annual interest payment on a bond, usually expressed as a percentage of its face value
Coupon
The practice of investing in a large variety of stocks, bonds, and/or funds as a way to as a way to reduce your overall risk
Diversification
Match the following
Money from the profits of a company that is paid out to its shareholders, typically on a quarterly basis
Dividend
A collection of stocks and/or bonds that are traded on securities exchanges. Unlike mutual funds, they can be traded throughout the day like an individual stock.
Exchange-Traded Fund (ETF)
A low-fee portfolio of stocks chosen to track or mimic a stock market index, thereby removing the human element of investing because no one is choosing the individual stocks
Index Fund
An investing tool for individuals to earmark funds specifically for their retirement
Individual Retirement Account (IRA)
The rate at which the price of goods increases and consumer purchasing power decreases over time
Inflation
Match the following
The process of setting money aside to increase wealth over time for long-term financial goals such as retirement
Investing
The illegal act of trading a company's stock using information that is not available to the public
Insider Trading
Market value of a company's outstanding shares calculated by multiplying the current share price by number of shares outstanding
Market Capitalization
An application that allows users to regularly save small sums of money
Micro-Investing Platform
A bond, often having tax advantages for individual investors, issued by a state or local government which typically uses the loan to pay for public works to benefit its citizens
Municipal Bond
Match the following
An employer contribution made to their employees' 401(k) plan based on individual employee's contributions
401(K) Match
Dividing an investment portfolio among different asset categories, such as stocks, bonds, and cash
Asset Allocation
A group of financial instruments which have similar financial characteristics and behave similarly in the marketplace (like stocks, bonds, and cash)
Asset Class
A market in which prices are falling, encouraging selling.
Bear Market
A security in which the investor loans money to a company or government, which then pays regular interest to the bondholder and returns the principal on the bond's maturity date
Bond
Match the following
A share of the value of a company, which can be bought, sold, or traded as an investment and which gives the investor small partial ownership of the company
Stock
A federal program that provides monthly benefits to millions of Americans, including retirees, military families, surviving families of deceased workers, and disabled individuals
Social Security
An index of 500 large cap companies chosen based on their size, industry, and other factors, used to represent the entire market
S&P 500
The world's largest stock exchange, physically located in New York City
NYSE
The second largest stock exchange in the world behind the NYSE
Nasdaq
