WorksheetsMastering Personal Finance Skills
Total questions: 30
Worksheet time: 19mins
What is the first step in creating a budget?
Create a savings plan.
Assess your current financial situation.
Cut all expenses completely.
Invest in stocks immediately.
What does FAFSA stand for?
Free Assistance for Financial Student Aid
Free Application for Federal Student Aid
Federal Application for Financial Student Aid
Federal Assistance for Free Student Aid
Which of these is a variable expense?
Electricity Bill
Rent
Insurance
Car Loan Payment
How can you effectively track your spending?
Ignore your receipts and estimate your spending at the end of the month.
Only track spending when you feel like it.
Rely solely on your memory to remember your expenses.
Use budgeting apps or spreadsheets to categorize and review your expenses regularly.
(a) is a temporary pause in loan payments, usually due to financial hardship, unemployment, or returning to school; with certain types of loans, interest may not accrue during this time period
Which factor greatly impacts your credit score?
Payment History
Credit Utilization
Credit Mix
Length of History
Which payment method creates a debt that you have to pay back later?
Debit Card
Gift Card
Bank Card
Credit Card
(a) are performance-based type of income that is most commonly paid to salespeople and directly based on the amount of sales they generate
What is a credit score and why is it important?
A credit score is a measure of creditworthiness that impacts loan approvals and interest rates.
A credit score is a score given by banks to assess customer loyalty.
A credit score is a rating of personal character that affects job applications.
A credit score is a measure of income that determines tax rates.
How can you improve your credit score?
Max out existing credit limits
Open multiple new credit cards
Ignore credit reports
Pay bills on time, reduce debt, avoid new credit inquiries, check for errors, and maintain credit mix.
TRUE OR FALSE: Job offers usually include information about your salary AND benefits like what healthcare options the company provides.
TRUE
FALSE
Which of the following is the right chronological order of the Money Buckets method?
Emergency Funds
Living Expenses
Major Life Expenditures
Retirement Funds
Living Expenses
Emergency Funds
Major Life Expenditures
Retirement Funds
Major Life Expenditures
Emergency Funds
Retirement Funds
Living Expenses
Living Expenses
Major Life Expenditures
Retirement Funds
Emergency Funds
What factors can negatively impact your credit score?
Late payments, high credit utilization, defaults, bankruptcy, and excessive hard inquiries.
Low credit utilization
Timely payments
Having multiple credit cards
What is the difference between secured and unsecured debt?
Secured debt can only be used for mortgages.
Unsecured debt requires collateral to be approved.
Secured debt has collateral backing it, while unsecured debt does not.
Secured debt is always more expensive than unsecured debt.
What strategies can help you pay off debt faster?
Invest all your money in high-risk stocks
Create a budget, cut expenses, increase income, and consider debt consolidation.
Ignore the debt and hope it goes away
Take out more loans to cover existing debt
What is the definition of 'net worth'?
Income minus Expenses
Profits minus Losses
Assets minus Liabilities
Extra Money Leftover in your Budget
Which of the following is NOT a type of a bank transaction?
Deposit
Withdrawal
Transfer
Account Balance
What is an emergency fund and how much should it contain?
An emergency fund should contain one month's worth of living expenses.
An emergency fund is only necessary for homeowners.
An emergency fund should contain three to six months' worth of living expenses.
An emergency fund should be invested in stocks for growth.
________ ________ are non-income aspects of an employee’s total compensation, which may include Paid Time Off (PTO), 401(k) retirement plans, health insurance coverage, and partial company ownership in the form of equity or stock options.
(a)
How often should you review and adjust your budget?
Monthly, or after significant life changes.
Every two years, without exception.
Only when you feel like it.
Annually, regardless of changes.
TRUE OR FALSE: Grants, loans, and scholarships are all "free money" to help pay for college that you don't have to pay back
TRUE
FALSE
What are the benefits of using cash instead of credit cards?
Cash offers more rewards than credit cards.
Using cash allows for higher spending limits.
Cash transactions are always more secure than credit card transactions.
Benefits of using cash include better budgeting, no interest or fees, privacy, and preventing overspending.
What does ATM stand for?
(a)
Which of the following is NOT a part of possible external factors that influences your relationship with money?
Media
Family
Friends
Personal Experience
ALL ARE CORRECT
What is the impact of late payments on your credit score?
Late payments only affect your credit score if they exceed 30 days.
Late payments improve your credit score.
Late payments negatively impact your credit score.
Late payments have no effect on your credit score.
_______ _________ is your ability to generate income from your work by creating economic value; you can enhance this ability by gaining more skills, knowledge, experience, and professional connections.
(a)
How can you avoid falling into debt?
Rely on credit cards for all purchases
Create a budget and save regularly.
Spend beyond your means
Ignore your expenses
In the 50/30/20 method of saving money, what percent of your money should be spent on needs?
50%
20%
30%
100%
What is the purpose of a credit report?
To provide a summary of an individual's bank account balances.
To track an individual's spending habits.
To list all the credit cards an individual has applied for.
The purpose of a credit report is to evaluate an individual's creditworthiness for lending purposes.
___________ _________ is one of the key financial practices in this course, this involves thinking carefully about loans and debt, never taking on more debt than you need, and always having a plan for how you will pay money back to lenders on time
(a)
