WorksheetsPersonal Finance Final Review
Total questions: 30
Worksheet time: 16mins
All of the following would reduce Maria’s checking account balance, EXCEPT…
Writing a check to pay her rent
Using her debit card to buy groceries
Receiving a direct deposit from her employer
Setting up an automatic payment for her utility bill
Usually, ______ are easier to reduce because they change monthly, compared to ______ which are set costs you pay monthly
needs; wants
wants; needs
variable expenses; fixed expenses
fixed expenses; variable expenses
To calculate the net price for a college, you...
Add the cost of tuition to your room and board expenses
Subtract any grants and scholarships from the sticker price
Multiply the tuition by the number of years you plan to attend
Divide the total cost of attendance by the number of semesters
A cover letter is…
Another term for your resume
A form that you submit to take paid time off from work
A legal document that you sign to accept a job offer
A part of a job application that illustrates why you would be a good fit
All of the following are common benefits of mobile banking, EXCEPT…
Transfer money without visiting a bank branch
Deposit checks using your phone’s camera
Avoid all banking fees, like overdraft fees
Check your account balance at any time
Which of the following is an example of a dark pattern?
A social media app that clearly show you how to turn off notifications
An online store that applies a discount with a valid coupon code
A website that asks for confirmation before adding extra items to your cart
A subscription service that requires you to call customer service to cancel
Mia’s renters insurance has a $15 premium, $250 deductible, and $100,000 coverage limit. Her $550 bike is stolen. Who pays?
Mia pays $0; her insurance pays $550
Mia pays $15, her insurance pays $535
Mia pays $250; her insurance pays $300
Mia pays $300; her insurance pays $250
What is the benefit of compounding in savings accounts?
It yields larger returns than simple interest
It allows you to make more transactions each month
It is easier to transfer money from checking to savings
It minimizes your tax liability
Shirley’s take-home pay, aka her _____, was lower than she expected because of _____ taken out for taxes and retirement.
Net pay; deductions
Net pay; capital gains
Gross pay; deductions
Gross pay; capital gains
How is putting money in a savings account different from investing in the stock market?
Saving is usually high-risk; investing is usually high-return
Saving is best for short-term needs; investing is best for long-term goals
Saving earns about 5-7% per year; investing earns about 1-2% per year
Saving is best for building wealth; investing is best for an emergency fund
Which of the following best describes a credit report?
A detailed record of your borrowing and repayment history
A summary of your monthly income and expenses
A list of all the bank accounts you have opened
A document that shows your current credit and balances only
Compared to alternative banking services (e.g. check cashing), traditional banks…
have higher fees for services like check cashing and money orders
Offer more consumer protections
Make it harder to build a credit history
Offer more short-term high-cost loans
Which of the following actions is most recommended after a job interview?
Submitting your cover letter
Sending a personalized thank you message
Sharing salary information from your current job
Waiting 2-3 weeks before following up
Which answer correctly pairs the type of auto insurance coverage with its description?
Liability coverage: covers the cost of your injuries from a crash
Collision coverage: covers the cost of damages to your car from a crash
Personal injury protection: covers the cost of damages to other people and vehicles
Comprehensive coverage: covers the cost of damages if the other driver doesn’t have insurance
Sayeed has an extra $100 to pay down his debts. To minimize his total interest, which debt should he pay off first?
His car loan: $2,400 at a 7.2% interest rate
His credit card: $2,500 at a 19.5% interest rate
His federal student loans: $4,300 at a 6.53% interest rate
His personal loan: $500 at a 3% interest rate
It’s January and Tim is preparing to file his taxes. Which of the following steps is INACCURATE?
Tim will receive his W-2 from his employer by the end of January
Tim will complete the form 1040 to file his taxes
Tim has until February 15th to file his taxes
If Tim owes taxes, he must pay them by April 15th
Which investment automatically adjusts your asset allocation over time?
Target Date Fund (TDF)
Index Fund
Individual Stock
401(k)
Which of the following is TRUE about a secured credit card?
Secured credit cards have a spending limit equal to the deposit amount
Secured credit cards do NOT build your credit history
Secured credit cards are higher risk for a bank than other credit cards
Secured credit cards usually have a higher credit limit than other cards
If you are in the 22% marginal tax bracket, that means…
You will pay a 22% tax rate on your total income
You will pay a 22% tax rate on your last dollar earned
You will pay more in taxes than 22% of Americans
You will pay a 22% total tax rate, split between you and your employer
Which step will help prevent identity theft?
John uses public Wi-Fi when accessing sensitive accounts online
Fatima regularly checks her bank statements for any suspicious transactions
Yuki uses the same password for all his online accounts for convenience
Sofia keeps her Social Security card in her purse for easy access
How are student loans different from scholarships and grants (S&G)?
Loans need to be repaid; S&G do not
Loans are for everyone; S&G are only for students with 4.0 GPAs
Loans are interest-free; S&G have hidden fees
Loans do not require you to work part-time; S&G do
Which of the following correctly pairs the term with its definition?
Principal: A part of the item's cost that is paid at the time of purchase
Interest Rate: The rate charged for borrowing money
Down payment: The original amount of money borrowed
Cosigner: A valuable item that the lender can take as a form of payment
Risk pooling is a process where…
Insurance companies spread risk out over a large group of people
Investors focus on high-risk assets with the chance of a high return
Banks lower their risk by offering variable interest rates
Colleges set aside 10% of acceptances for applicants deemed “risky”
All of the following strategies will reduce how much interest you pay on a loan, EXCEPT…
Making additional payments to reduce the loan principal
Putting down a larger down payment
Extending the loan term
Finding the lowest available interest rate
Which of the following is an example of the Pay Yourself First budgeting strategy?
Keith automatically deposits 15% of his paycheck into savings each month
Riley divides her cash into envelopes for different budget categories
Lisa uses a budget spreadsheet to track every dollar she spends
Andreas spends 50% of his income on needs, 30% on wants, and 20% on savings
The minimum payment on a credit card tells you the lowest amount you can pay that month in order to ___________________.
Remain in good standing with the credit card company
Avoid accruing any interest on your balance
Have access to your credit card the following month
Increase your credit limit
Why would someone review your credit report?
To see how much money you have in your savings account
To calculate your monthly budget and spending habits
To evaluate how responsible you are with borrowing and repaying money
To determine your annual income and employment history
Which person is using the comparison shopping strategy?
Anika buys a product because it's the first one she sees in an ad
Jamal chooses a store based on how close it to his house
Mei checks prices at multiple stores before deciding which phone to buy
Elijah buys the first pair of shoes he finds without looking at other ones
Which of the following is TRUE when taking out an auto loan?
The total interest paid is the same regardless of the loan term
The amount of money you borrow is called the loan principal
The loan principal includes both the car's price and the interest you owe
Choosing a shorter loan term will lower your monthly payments
Why is it important to fill out the FAFSA?
It guarantees you will receive scholarships from your college
It automatically lowers the cost of tuition for all students
It allows you to register for classes before other students
It determines your eligibility for federal financial aid, grants, and loans
