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WorksheetsHS 101 Final
Total questions: 60
Worksheet time: 35mins
money owed to another person or company
Debt
Credit
Interest
Personal Finance
the percentage of principal charged by the lender for use of its money
Interest Rate
Loan Shark
Credit
Asset
the additional cost a lender charges for borrowing their money
Interest
Asset
Liabilities
tax
the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities
Net Worth
Asset
Expense
Net Income
anything that is owned by an individual, including money in the bank or investments
Asset
Net Worth
Consumer
Tax
Personal Finance
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
a person or organization that uses a product or service
money owed to another person or company
an expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
Paycheck to Paycheck
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
a person or organization that uses a product or service
money owed to another person or company
an expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
44% of Americans report they have less than $1,000 in savings
True
False
the cost of goods or services; money paid out
Assest
Expense
Liability
Budget
Save a $500 Emergency Fund
Get out and stay out of Debt
Pay cash for your car
Pay cash for college
Build wealth and give
The percentage of Americans who are living paycheck to paycheck is almost:
60%
70%
80%
90%
Dawson wants to set up an emergency fund. What is the purpose of an emergency fund?
A savings account set up specifically to be used to cover financial emergencies
A purchase that requires a significant amount of money
The percentage of principal charged by the lender for the use of its money
The amount of interest charged on a debt but not yet collected
Kaiden is planning to buy a new car. What would this purchase be considered as?
A savings account set up specifically to be used to cover financial emergencies
A large purchase that requires a significant amount of money
The percentage of principal charged by the lender for the use of its money
The amount of interest charged on a debt but not yet collected
Kyler borrowed some money from a bank. What does the bank mean when it talks about an interest rate?
A savings account set up by Kyler specifically to be used to cover financial emergencies
A purchase that Kyler made that requires a significant amount of money
The percentage of principal charged by the bank for the use of its money
The amount of interest charged on Kyler's debt but not yet collected by the bank
Judy invests $1000 in a savings account. Over time, she earns interest on her initial investment as well as on the interest she has previously earned. What is this type of interest called?
compound growth
compound interest
interest rate
rate of return
Riya borrowed some money to buy a new laptop. What is the initial amount of money her borrowed?
principal
down payment
large purchase
time value of money
When someone steals and uses your debit or credit card info, that's called ______________.
Authorized spending
Fraud
Borrowing
Networking
Which of the following has the lowest risk for getting your card information stolen?
Using your debit card and PIN at a reputable store
Making an online purchase on an unsecured site
Handing your card over to a server at a restaurant.
Storing your card information online
Earned Income
Money that is received as a gift or inheritance
Money that is earned through investments
Money that is received from government assistance programs
any income (wages/salary) that is generated by the work someone performs
Wage
money paid by the hour and for an agreed number of hours per week; especially for unskilled or manual labor
A salary, which is a fixed amount of money paid periodically for a job.
A bonus, which is an extra payment given to employees as a reward for good performance.
A commission, which is a payment based on a percentage of sales or profits.
Minimum Wage
The lowest amount of money an employee can receive as a bonus
the smallest amount that employers can legally pay their employees per hour of work
The maximum amount of money an employee can receive as a salary
The amount of money an employee must pay in taxes each year
Salary
The amount of money a company pays for goods or services.
A payment made to an employee in exchange for their labor.
a fixed annual amount earned by an employee, typically paid weekly, biweekly, or monthly
A payment made to an individual in exchange for their services.
Property Tax
A tax imposed on goods and services
A tax imposed on income
taxes paid by anyone who owns property, such as land, a home, or commercial real estate
A tax imposed on imports and exports
Inheritance Tax
A tax on the sale of a property
a state tax on an asset an individual received from someone who has passed away
A tax on the income of an individual
A tax on the purchase of a vehicle
The purpose of an emergency fund is to . . .
Be able to cover an unexpected expense with cash and protect you from having to pile up debt when something goes wrong.
Teach you how to invest in growth stock mutual funds.
. Have some extra money in a checking account in case you need to transfer some to your spending categories.
Teach you discipline—saving is purely a good exercise in self-control.
Gross Income
the amount you earn before taxes and other payroll deductions
The amount of money you have saved up
The amount of money you owe in taxes
The amount of money you spend on living expenses
Although the majority of Americans think budgeting is important, about ____ of Americans actually use a budget.
75%
50%
23%
35%
Which of the following is NOT a component of a budget?
Credit score
Saving
Income
Giving
What are the Four Walls?
Utilities, college fund, restaurants, and car insurance
Cell phone bill, car insurance, shelter, and money for the movies
Food, utilities, transportation, and college fund
Food, utilities, shelter, and transportation
How many categories should you have in your budget?
15 or more
No limit; use as many as you need to keep your budget accurate!
No more than 10
At least 3
How often should you create a budget?
Daily
Weekly
Monthly
Biannually
If you get married, only one person is responsible for budgeting.
True
False
What does a budget show you?
How much you need to save
How much money you plan to come in and go out during the month
How much money you need to earn
How much money you spent last month
How many months does it usually take for your budget to start working as a budget should?
Three
Five
Four
One
Net income is the amount you get paid before taxes.
True
False
Why is tracking your expenses throughout the month important?
It allows you to delete categories you don't like.
It gives you insight into whether you're sticking to the budget you set.
It helps you pull money from your savings to spend in other categories.
It really isn't that important in the long run.
A common misconception is that budgeting will keep you from you from having fun, when in reality a budget...
Adds more stress to your life
Means there are no rules, you are free to use your money however you want
Restricts your fun completely
Gives you permission to spend
The first priority in your budget should be ____.
Giving
Spending
Saving
Investing
When is the right time to start creating and living by a budget?
Right now, it's never too early!
When you start researching colleges and the costs that come along with it
Once you have a job with an income
When you decide it's time to buy a car
Your monthly rent payment is an example of a variable expense.
True
False
The best way to budget is...
By using a digital app
Creating a spreadsheet
The way that works best for you
On paper
What is the envelope system?
It's a method of budgeting that uses envelopes labeled with specific budget categories for your cash.
It's a systematic approach to budgeting with a digital app that organizes categories based on qualitative amounts.
It's a way to budget that involves putting a credit card in each envelope to use for that category.
It's a system that involves writing your entire budget on an envelope.
Why is budgeting so important?
It's a way to make sure all your money is spent by the end of the month.
It helps you figure out the best way to justify purchases that maybe aren't necessary.
It gives you control of your money and sets you up for financial success in the future.
It helps you brush up on your math skills.
When someone steals and uses your debit or credit card info, that's called ______________.
Authorized spending
Fraud
Borrowing
Networking
Part of being a smart consumer is being able to . . .
Set up digital wallets and mobile payment
Discern when to open a retail store credit card
Use a credit card for the points
Say no to an unnecessary purchase
A savings account is for ______.
The Entertainment budget line item
Investing your money
Regular spending
Long-term savings goals
A bank can help you _____ your money and keep it ______.
Budget; available
Manage; safe
Deposit; budgeted
Find; growing
Your emergency fund should go in your checking account, NOT a money market account.
True
False
If you see "pending" on an account charge, that means...
It hasn't been fully processed yet
It is suspected of being a fraudulent charge
The payment was declined
You need to make a deposit before it is paid
A debit card, ATM access, payroll direct deposit, and checks are basic features of
A checking account
A money market account
Online banking
A savings account
Banks invest their customers' deposited money and then...
Pay their customers 100% of the earned interest
Earn interest, keeping all of it as their own profit
Typically lose some of it in risky investment deals
Earn interest, paying the customer a small amount of interest on their accounts
What is the difference between gross pay and net pay?
Net pay describes your pay after deductions; gross pay is before.
Gross pay describes your pay after deductions; net pay is before.
Gross and net pay are the same.
None of the above
Which of the following is not one of the three basic reasons for saving money?
Have money available to lend to friends.
Build wealth.
Emergency fund.
Large purchases.
Rent is a:
Fixed expense
Variable expense
Discretionary expense
Intermittent expense
A credit score is intended to measure:
Your financial success
Your income level
The risk of your not repaying debt
a.The amount of money you have in the bank
The purpose of insurance is to:
Provide an investment opportunity
Transfer financial risk
Develop a savings plan
All of the above
Employee benefits packages:
Are non-wage compensations provided to employees in addition to their normal wages or salaries
Should not be a consideration when looking for a job
Never include retirement plans
Are the same regardless of the company you work for
what a person earns after payroll taxes and other deductions are taken out
irregular income
commission
gross income
net income
when using a zero-based budget, your income - your outgo equals _____
$200
$100
whatever is left over will go into savings
$0
when calculating income for a budget, what must you do when given an annual income?
multiply by 52
divide by 10
divide by 12
multiply by 12
