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WorksheetsPersonal Finance
Total questions: 30
Worksheet time: 15mins
Name
Class
Date
1.
1. Sylvester is taking out a loan and is confused by the wording on the loan application. Which of the following explanations might help him?
a)
TERM is the length of the loan, and INTEREST RATE is how much total money he will pay
b)
PRINCIPAL is how much he owes per month, and TERM is how much he owes overall
c)
INTEREST RATE is how much the lender charges per year for the loan, and PRINCIPAL is the initial amount Sylvester borrows
2.
2. Which should you use when creating a budget - your NET PAY or GROSS PAY?
a)
Gross pay, because it’s the total amount you’ve earned that month
b)
Net pay, because it’s the total amount you’ve earned minus taxes and other deductions
c)
Gross pay, because it’s the total amount you’ve earned minus any recurring bills you owe for the month
3.
3. All of the following are benefits of taking out a loan with a cosigner EXCEPT…
a)
There are no late fees for late payments
b)
You gain access to loans you might not have been approved for on your own
c)
Your interest rate might be lower
d)
Your credit score will be positively impacted by making timely payments
4.
4. Which of the following is a method of accessing the money in your checking account?
a)
Buy a prepaid card using cash
b)
Deposit a paycheck from your job
c)
Use your debit card at a store and select to withdrawal funds and sign the machine or receipt
d)
Take money from the ATM using your credit card
5.
5. Your little sister wants to know how renters insurance works. Which description should you give her?
a)
When something goes wrong at your apartment, you pay one premium to open a renters insurance policy and ask the insurance company to cover your losses
b)
Your rent payments go to the building’s owner, and that person covers your losses if anything goes wrong at your apartment
c)
You pay monthly premiums into a savings account, and if something goes wrong, you can withdraw the money to pay your claims
d)
You pay monthly premiums to buy a policy, and then you file a claim to have the insurance company cover your losses if something goes wrong
6.
6. You put $1000 in a CD (Certificate of Deposit). The CD earns 2% annual compound interest. Approximately how much money will be in the account after 10 years?
a)
The same $1000 you started with
b)
Exactly $1200
c)
Slightly more than $1200
d)
$2000
7.
7. Which of the following can be found in your credit report?
a)
Your checking and savings account balances
b)
How long you’ve been a member of a bank or credit union
c)
Your credit payment history
d)
A list of items you’ve purchased using credit
8.
8. When making a decision about a financial product (such as a loan, savings account, credit card, etc.), which of these pieces of advice is LEAST valuable?
a)
Compare products based on the things you find most important
b)
Do research to learn more about each of the options
c)
Read the fine print of any agreements so you understand the costs and requirements of your account
d)
Simply choose the option that your parents use
9.
9. When you use your credit card, you owe a payment called "interest" to the credit card company. Which of the following will result in your paying the LARGEST amount of interest to the credit card company?
a)
Paying 20% of your credit card balance every month
b)
Making the minimum payment every month
c)
Paying off your balance every month
d)
Saying "credit" every time the cashier asks "Debit or credit?"
10.
10. Which of the following is TRUE about a Target Date Fund (TDF)?
a)
It is a fund that is managed by a company that usually charges a 1-2% management fee
b)
A TDF will automatically adjust your assets for you over time as you get closer to retirement
c)
You can only sign up for the TDF that aligns with your projected retirement year
d)
A TDF only invests in stocks and will adjust your money between different industries over time
11.
11. Which of the following statements about car insurance is TRUE?
a)
If you have insurance and are pulled over for speeding, you won't get "points" on your license
b)
If you pay your premium on-time every month, you won't have to pay anything extra if you are in an accident
c)
If you are in an accident, the other driver cannot sue if you have car insurance
d)
If you cause an accident and another driver is injured, your insurance will cover portions of his/her medical bills
12.
12. Which difference between "saving" and "investing" is MOST accurate?
a)
Saving and investing are the exact same thing
b)
Investing is best for the short-term and for emergencies while saving is best for the long-term
c)
If you have less than $10,000 in an account, what you are doing is saving. If you have more than $10,000 in your account, you are investing.
d)
Savings accounts provide a standard rate of return that is less risky. On the other hand, investing does not have a standard rate of return, making investing riskier.
13.
13. Lots of people spend money because they have a "fear of missing out" (FOMO). What is the best way to feel less "FOMO"?
a)
Buy stuff on a weekly basis so you always have something new to show your friends and family
b)
Decrease time spent on social media and increase time spent on enjoyable activities
c)
Say “yes” to all social events even if you don’t feel like going to them
d)
Delete all of your social media accounts and data as soon as possible
14.
15. Each of the following is a benefit of using online and mobile banking EXCEPT...
a)
You can check your balances before you make a purchase
b)
You can transfer money electronically between accounts
c)
You can eliminate overdraft fees
d)
You can keep an ongoing record of your deposits and withdrawals
15.
16. Carmen has just graduated from college and is filling out paperwork with her new job's Human Resources department. Which document will she fill out that relates to how much she'll pay in taxes?
a)
a 1040 form
b)
a copy of TurboTax and file her taxes
c)
an I-9 form
d)
W-4 form
16.
17. Sam has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?
a)
A budget deficit of $200
b)
A budget deficit of $4800
c)
A budget surplus of $200
d)
A budget surplus of $4800
17.
18. Angelo has a savings account worth $1000 that earns 2% interest He has a student loan of $40,000 that charges 4.6% interest. He also has a credit card bill that has $1500 on it with a 23.4% interest rate. He has a budget surplus of $300 at the end of the month. What should he do with the $300?
a)
Put it in the savings account so that if he does the same next month, he'll have more than enough to pay his credit card bill in full
b)
Just leave it in his checking account in case he needs it next month
c)
Pay it toward his credit card bill, because it has the highest interest rate
d)
Pay it toward the student loan, because he owes far more there than on the credit card
18.
19. The standard Internal Revenue Service (IRS) form that individuals can use to file their annual income tax returns
a)
I-9
b)
W-2
c)
W-4
d)
1040
19.
20. A form that an employer must send to an employee and the IRS at the end of the year to report the employee's annual wages and taxes withheld from their paycheck.
a)
I-9
b)
W-2
c)
W-4
d)
1040
20.
21. Which bank fee is usually cost the most amount of money?
a)
Monthly Maintenance Fee
b)
Overdraft Fee
c)
Out of Network ATM Fee
d)
Transfer Fee
21.
22. John spends $500 on his credit card in May. In June he receives his statement and pays the minimum payment of $20. He doesn't use the credit card in June at all. Will his July statement balance be
a)
Less than $480
b)
$480 exactly
c)
More than $480
22.
23. If you feel you are a safe driver than you do not need car insurance.
a)
True
b)
False
23.
24. Why do lenders look at credit reports?
a)
To determine the size of your household
b)
To provide them details about your savings account
c)
To decide whether you are responsible and are a good person for credit
d)
To edit your credit score
24.
25. Why would someone want to pay a higher premium for their car insurance?
a)
To receive a low deductible and monthly payment
b)
To receive a low deductible and low coverage
c)
To receive a low deductible and not a lot of coverage
d)
To receive a low deductible and a high coverage limit
25.
What is the primary purpose of a credit score?
a)
To calculate your monthly expenses
b)
To assess your financial responsibility and creditworthiness
c)
To determine your annual income
d)
To track your spending habits
26.
Which of the following is a common feature of a high-yield savings account?
a)
Offers a fixed interest rate for 10 years
b)
Requires a minimum balance of $10,000
c)
No interest earned on the balance
d)
Higher interest rates compared to regular savings accounts
27.
What is the main advantage of using a Roth IRA for retirement savings?
a)
It offers a guaranteed rate of return
b)
Withdrawals are tax-free in retirement
c)
You can withdraw funds at any time without penalty
d)
Contributions are tax-deductible
28.
What is the main benefit of having a diversified investment portfolio?
a)
It ensures that all your investments are in one sector
b)
It allows you to invest only in high-risk stocks
c)
It reduces the risk of loss by spreading investments across various assets
d)
It guarantees a high return on investment
29.
Which of the following is a common feature of a checking account?
a)
It charges a fee for every transaction
b)
It offers a high interest rate on deposits
c)
It requires a minimum balance of $10,000
d)
It allows unlimited withdrawals and deposits
30.
What is the primary purpose of a budget?
a)
To calculate your annual income
b)
To help you plan and manage your finances effectively
c)
To ensure you spend more than you earn
d)
To track your spending habits
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