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WorksheetsNewcomer PF - Review Final
Total questions: 57
Worksheet time: 29mins
What is the difference between gross and net pay?
Gross pay is before taxes and deductions are subtracted; net pay is your take-home pay.
Net pay is before taxes and deductions are subtracted; gross pay is your take-home pay.
There is no difference between gross and net pay.
What does FICA consist of?
Federal & State Taxes
Health Insurance & Copays
Social Security & Medicare
State & City Taxes
Which of the following is NOT a voluntary deduction?
Employer-sponsored Retirement Plan
Company Health Insurance Plan
Company Life Insurance Plan
FICA taxes
What is a payroll deduction?
Amounts that INCREASE an employee's payroll check (examples include: raises, bonuses, overtime).
Amounts that DECREASE an employee's payroll check (examples include: federal tax, state tax, health insurance).
The total earnings paid to an employee after payroll taxes and other deductions.
Total Earnings
Net Pay
Payroll Register
Withholding Allowance
What is the difference in Gross Pay and Net Pay
Gross pay describes your pay after deductions; net pay is before.
Gross and net pay are the same.
Net pay describes your pay after deductions; gross pay is before.
None of above
What are Pre-Tax Deductions and Contributions?
x
Contributions taken out of your paycheck AFTER taxes are calculated on your income
Contributions taken out of your paycheck BEFORE taxes are calculated on your income
What does FICA stand for?
Federal Insurance Contribution Act
Funny Iguanas Climb Agilely
When you start a new job, you fill out a W-4 form to:
determine your net pay
determine your gross pay
determine how much Federal Income Tax your employer should withhold from your paycheck
determine how much Federal Income Tax should be withheld so you can avoid paying state income tax
Before 1913, taxes were _______by the U.S. Constitution.
Allowed
Forbidden
How long do bank statements usually cover?
Weekly
Bi-weekly
The previous month
What is the purpose of a W-2 form?
To report the amount of taxes withheld from your paycheck for the year
To determine your gross pay
To apply for a new job
To calculate your net pay
Which of the following is a mandatory payroll deduction?
Health Insurance Premiums
Federal Income Tax
Retirement Plan Contributions
Charitable Donations
What is the primary function of the IRS?
To manage the country's monetary policy
To collect taxes and enforce tax laws
To provide financial advice to citizens
To regulate the stock market
On your bank statement, credit means what?
Money coming in
Money going out
On your bank statement, what would be considered a credit? Check all that apply.
Paycheck
Insurance bill
Tax refund
A check your great Aunt Tillie sent you for your birthday.
On your bank statement, a debit is:
Money going in
Money coming out
Stephanie wants the newest phone. It costs $400. She has $300 so she doesn't have enough. What will she need to do to get to $400?
Spend
Save
Donate
Earn
How much did Jose earn this pay period?
$1335.00
$445.00
$340.52
None of the above
What are some common fees? Check all that apply.
Overdraft Fees
ATM withdrawals
Good customer fee
Fee to transfer money between your accounts
What is overdrafting?
When you open a new checking account
When you close your checking account
When your checking account goes below $100
When your checking account goes below zero
Banks can charge overdraft fees in the following ways, EXCEPT...
Charging you a one-time fee when your account is below $0
Charging you a fee for every time you make a transaction when your account is below $0
Charging you triple the amount of a purchase each time your account is below $0
What is a benefit of using online mobile bank apps?
You receive extra cash from your bank or credit union when you use the app frequently
Using the app means that you will never have to visit a bank or ATM again
Using an online mobile bank app automatically signs you up for direct deposit
You can deposit a check without visiting a bank or ATM by simply uploading front and back photos of the check
While checking accounts don't directly affect your credit report, how can checking accounts be used to determine eligibility?
Checking account values can be seen by your future employers
If you use money from your checking account frequently, you will be less likely to get approved for loans
If you close checking accounts too frequently, banks may not let you open a new account
If you have less than $1,000 in a checking account, other banks may not let you open new accounts
Approximately how much money do you want to keep in your checking account?
One day's worth of expenses
Half of a paycheck
One full paycheck
One year's worth of expenses
What is a checking account?
An account used for saving money over a long period
An account used for daily transactions and withdrawals
An account used for investing in stocks
An account used for earning interest on deposits
What is the purpose of a savings account?
To provide a safe place to store money while earning interest
To allow for frequent transactions and withdrawals
To invest in real estate
To pay for daily expenses
What is the main difference between a savings account and a checking account?
Savings accounts are for daily transactions; checking accounts are for long-term savings
Checking accounts typically offer higher interest rates than savings accounts
Savings accounts are for long-term savings; checking accounts are for daily transactions
There is no difference between a savings account and a checking account
Is your principal (what you put into your savings account) at risk of going down in Value?
No
Yes
What does liquidity mean?
How quickly something can be converted to credit.
How quickly something can be converted to cash.
When money is "locked up" (in an IRA or Retirement fund) how old do you need to be to access your money free of any penalty?
58
50
45
60
Can the value of a home decrease?
No
Yes
Does throwing money in a "wishing well" help you save money or get your wishes?
Yes, everyone knows a wishing well is magic.
No, you just spent money that you won't get back.
If you don't get a paycheck, how can you "automate" your savings?
Don't worry about it - you'll have enough after you have fun.
Set a reminder on your phone for the same day every week so you can check if you have gotten any money that you put into savings.
Rely on your parents to remind you to save.
What percentage of Americans are not able to afford a $400 emergency?
0%
20%
40%
100%
Is it a good idea to pay for emergency expenses using a credit card?
Yes
No
What is an added expense of using a credit card for emergency expenses?
High interest rates
Annual late fees
Without an emergency fund, an unexpected expense can leave you feeling...
Happy and content
Stressed and humiliated
Healthy and full
Which of these is an example of an "emergency" expense?
Car repair
Surgery
Medical tests
All of the above
How much money should be in your emergency fund?
30 days of expenses
3-6 months of expenses
1 year of expenses
Where is the best place to store your emergency savings?
In a piggy bank
In my checking account
In my savings account
It is better to save for an emergency fund...
as quickly as possible.
gradually over time.
The same "money muscles" you use to build an emergency fund can be used for which other activity?
Giving to charity
Saving money on car insurance
Building wealth
Which loan is for getting a vehicle?
Auto loan
Mortgages
Which loans are the worst
Payday loans
Student loans
A typical loan has what 3 things?
Principal
Interest rate
Term
credit
Which loan is less risky for a lender
secured loan
unsecured loan
Is being a cosigner risky?
No
Yes
Which rate stays the same on your loan?
variable rate
fixed rate
What is a grace period on a credit card?
The time frame you have to pay your credit card balance without incurring any interest.
The amount of time the credit card company has to total your purchases for the month.
The time frame you have to add additional purchases to your line of credit for a small fee.
The amount of time you can use your credit card to earn interest on the account.
What are TWO consequences of making a late payment on your credit card?
Increasing your credit score
Increasing your interest rate
Decreasing your credit score
Lowering your interest rate
How do you avoid paying interest on a credit card?
Pay the minimum payment on time each month
Pay the minimum payment within the grace period
Pay the balance in full each month
Pay the balance in full just AFTER the grace period ends
What is the primary purpose of an emergency fund?
To cover unexpected expenses
To invest in stocks
To pay off credit card debt
To save for a vacation
Which of the following is a fixed expense?
Groceries
Rent
Entertainment
Utilities
What is the benefit of automating your savings?
It ensures consistent saving without manual effort
It allows you to spend more freely
It increases your interest rate
It reduces your overall expenses
Which of the following is NOT a deduction required by law to be subtracted from most workers' gross pay?
Federal income taxes
State income taxes
Healthcare Insurance
FICA taxes
Define:
Gross Pay
The total amount of an employees earnings after deductions
The total amount of an employees earnings before deductions
