WorksheetsFinancial Math Midterm
Total questions: 60
Worksheet time: 48mins
You should always make sure you have a…
Budget
Credit line
Direct deposit
Credit card
What is The First Foundation?
Pay cash for college
Build wealth and give
Save a $500 emergency fund
Open a checking account
A money principle to keep in mind is to live on ______ you make.
Exactly 20% below what
More than
The same as
Less than
To know your net worth, subtract your liabilities from your…
Other liabilities
Net income
Previous Net Worth
Assets
Personal finance is 20% ____ and 80% ____.
Behavior; head knowledge
Cause; effect
Reactions; behaviors
A ____ financial goal takes up to two years to reach.
Five-level
Short-term
Medium-term
Long-term
When you set financial goals, they should be…
Timely, bank-based, specific, and yours
Specific, measurable, time-sensitive, yours, and written
Specific and measurable
Only time-sensitive
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
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
Net income is the amount you get paid before taxes.
True
False
A common misconception is that budgeting will keep 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
What should you do if you overspend in one category of your budget?
Adjust your budget by removing money from other spending categories
Just leave it. It will work out fine.
Take money from the Giving category
Ask a friend for the money you overspent
Your monthly rent payment is an example of a variable expense.
True
False
Why is budgeting so important?
It’s a good 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
Why do some accounts, like savings accounts at your local bank, earn interest?
Because you deposit money, adding to your principal each month
Because the bank pays you to use your money
Because those accounts always have great interest rates
Because of inflation
It’s not IF an emergency will happen, but ____.
How
Where
Why
When
Which two habits are the most important for building wealth and becoming a millionaire?
Working a high-paying job and relying on a trust fund
Always paying off your credit card on time and putting extra money into a retirement account
Investing into the right stocks and using a private CPA
Consistently investing money and giving it time to grow
The interest rate on a savings account determines…
How much money you need to have to open the account
How much you will pay the bank to manage the account
The amount of time your money will be in the account
How quickly your money will grow over time
_______ is a millionaire’s best friend.
High returns
Profit sharing
Once you’re out of school, have started your career, and have zero debt, your emergency fund should have _______.
3-6 months of income
3-6 months of living expenses
$3,000
$5,000
Which of these would count as a legitimate reason to use your emergency fund?
You forgot to budget for your mom’s birthday gift
You have a fancy event coming up but you already spent all of your Clothing budget category
The smartphone you’ve wanted just went on sale
Your car battery died
The amount of interest charged on a debt but not yet collected is called…
Accrued interest
Interest rate
Same-as-cash
Growth rate
Which principle says that a certain amount of money today is worth more than the same amount in the future?
Inflation
Rate of return
The time value of money
Principal interest
Bank and lenders use credit scores to determine…
The likelihood that someone is able to repay debt
A person's financial responsibility
How much collateral someone has available to put up for a loan
How successful someone is
When you finance a new car, you will end up paying more than the sticker price.
True
False
________ require the borrower to put up collateral for the loan.
Unsecured loans
Interest rates
Revolving credit
Secured loans
Leasing a car is a method of financing where someone_____.
Is paying off two or more vehicles at one time
Does not have to pay any taxes on the vehicle for the first six months
Never pays any interest or fees
Which is an example of an appreciating asset?
A computer used for business purposes
A new car purchased within the past 6 months
A piece of farming equipment
A home
Credit cards that offer flashy rewards like airline miles often…
Charge a high annual fee
Don’t include protection against fraud
Can’t be used for personal expenses
Have no interest fees
The debt snowball method involves...
Waiting until the winter months to begin paying off debt
Paying off debts from largest to smallest
Pooling together money from other people to pay off your debt
Paying off debts from smallest to largest
The smartest way to buy a car is to _______.
Lease it
Finance it but pay the debt as quickly as you can
Take out a personal loan for it
Pay for it in cash
When looking over your credit report, it’s important to make sure…
No lines of credit have been opened under your name without your knowledge
Your credit score is over 700
At least five businesses have requested your credit report
The information listed is over 10 years old
When someone steals and uses your debt or credit card info, that’s called…
Networking
Borrowing
Fraud
Authorized spending
Companies use marketing to get your prefrontal cortex offline so you’ll be vulnerable to impulse purchases
True
False
Part of being a smart consumer is being able to…
Say no to an unnecessary purchase
Use a credit card for points without going into debt
Set up digital wallets and mobile payment
Why should you never buy the extended warranty?
Retail items and products rarely break or malfunction
You should buy the extended warranty. It is a smart financial decision
Most retailers will replace or repair the product if it stops working within the first year
The retailers never keep their promises
Reading the owner’s manual, using the product as intended, and keeping the receipt are ways to…
Protect and maintain your purchase
Go into debt over an item
Think through a purchase
Avoid regretting an impulse purchase
What three questions is the brain always asking?
Am I safe? What are my surroundings? What are my thoughts?
Am I safe? Do I belong? Does this feel good?
Can I buy it? Should I buy it? Will I buy it?
Am I nervous? Am I mad? Am I scared?
If you’re a victim of card fraud…
Contact your bank immediately
Wait until the next week to contact your bank
Wait for your bank to contact you
Call 911 before making any other purchases
It’s okay to make an online purchase if you’re on unsecured Wi-Fi, as long as you log off as soon as you’re done.
True
False
______ skills are things you learn in school or receive special training on.
Your resume should NOT include______.
When writing your purpose statement, what should you think about?
Who you want to work for and how you can add value
Where you want to be in 30 years and how much money you want to make
Who you most want to help and the problem you want to solve
Who you want to learn from and how to solve their problems
The first step in finding your dream job is _______.
Employers consider soft skills as important as hard skills.
True
False
Many employers will research job candidates’ social media posts.
True
False
You should always do research about the company you’re applying for a job at or interviewing with.
True
False
If you don’t know the company dress code, it’s best to dress very casual for an interview.
True
False
Going to the movies is an example of what types of expenses?
Intermittent and variable
Discretionary and variable
Discretionary and fixed
Intermittent and fixed
The first step you should take when you want to make a large purchase is...
Ask your parents to loan you the money with low interest
Get a new credit card
Decide how much you'll need to save and the time frame you want to save it in
Sell something and use the proceeds
Which of the following is part of the formula that determines a person's FICO score?
Their income level during a one-year period
The percent of income that they invest into mutual funds
The dollar amount in their savings funds
Their history of payments made to lenders
Why is personal finance dependent upon your behavior?
Why should you be aware of whether you are a saver or a spender?
Explain the difference between a fixed expense and a variable expense and include an example of each.
What are some key components of successful budgeting?
What are three questions to ask yourself before you spend your emergency fund?
What is the danger of putting up collateral for a loan?
What is the difference between an appreciating asset and a depreciating asset? Give examples of both.
