WorksheetsFinancial Literacy Class Work
Total questions: 24
Worksheet time: 12mins
In general, the more education you have, the ________ your ________.
higher; debt
lower; debt
lower; salary
higher; salary
The best time to start investing money to reach your financial goals is ________.
now
in your forties
in your twenties
in your thirties
Which of the following supports the argument that many Americans pay too little attention to their personal finances?
About half of Americans working full-time report having to live paycheck to paycheck.
Workers can expect the federal government and possibly their state and local governments to deduct taxes from each paycheck they earn.
A higher level of education generally leads to a higher salary.
Bankruptcy involves a legal court taking over some or all of the finances of a person who is no longer able to pay his or her bills.
Bankruptcy is a legal process in which a(n) ________ takes over some of the finances of a person who is unable to pay his or her bills.
investor
financial advisor
court
bank
Which of the following is NOT a potential financial problem for which you should plan?
Increased health care costs
Uncertain economic future
Anticipated problems with Social Security
Higher interest rates for savings accounts
Understanding the opportunity costs of all your purchases is most likely to help you think about and change your ________.
spending habits
retirement plans
study habits
educational plans
A(n) __________ includes food, water, clothing, and shelter.
want
Which of the following is NOT a reason that the type of education you choose to pursue is a financial decision?
Post-high school education is expensive.
Your level of education significantly affects your career options.
The number of years you go to school is related to your earning potential.
You will be more likely to enjoy a job that holds your interest.
Which of the following is NOT a financial goal?
Retiring at an early age
Establishing an emergency fund
Enjoying your career
Making charitable donations
Which of the following is an example of charitable giving?
Buying raffle tickets for a chance at a prize at a fundraiser for a homeless shelter
Buying vegetables at the local farmer's market
Buying clothing at a second-hand thrift store
Buying products with a prepaid credit card
You would be LEAST likely to use a calculator on a financial planning website to do which of the following?
Determine a mortgage payment for a home
Calculate your return on savings
Calculate your earnings from investments
Determine the type of car you should purchase
Which of the following is a certification held by a financial advisor that indicates a certain level of training and expertise?
A FAC
A CFP
An MA
An IT
Which of the following is NOT an important question to ask when selecting a financial advisor?
Do I feel comfortable with the advisor?
Does the advisor have a relevant certification?
Does the advisor have personal plans for an early retirement?
Can the advisor provide references from satisfied customers?
A financial advisor's area of expertise should _______.
be broad
be independent
be narrow
match your needs
Calculating the opportunity cost of a purchase is a good way to consider the _______ of the purchase.
location
pros and cons
long-term effects
popularity
Before you decide what level of education you want to pursue, which of the following is most important to do?
Consider the cost of moving to attend college in another state
Consider your need for a rainy-day fund
Consider different universities and the courses offered at each
Consider different career options and the level of education required for each
Which of the following is NOT a part of personal financial planning?
Time management
Investment plans
Financial goals
Asset management
When is the best time to start saving for long-term financial goals?
When you are young and have fewer financial obligations
After you have finished college
When you have a family of your own
When you are in your forties and earning more money
Adults with which of the following levels of education make, on average, the highest annual income?
Associate degree
Master's degree
High school diploma
Bachelor's degree
What does the opportunity cost of a purchase tell you?
The cost of the purchase plus the cost of not doing or purchasing something else
The cost of the purchase minus the loss of interest on savings for the amount of the purchase
The cost of the purchase plus the interest paid on credit for the purchase
The cost of the purchase plus the cost of sales tax
Raising a child, including sending him or her to college, can be expected to cost ________ over the child's life from birth to age 22.
less than $200,000
more than $400,000
less than $100,000
more than $250,000
Which of the following is a long-term financial goal?
Creating an emergency fund
Taking a vacation
Buying a cell phone
Buying a house
Which of the following provides the most accurate definition of personal finance?
All of the financial issues that can affect an individual
All of the financial issues involved in spending within a budget
All of the financial issues involved in borrowing money
All of the financial issues involved in saving money
Tyra has to decide whether to work an extra shift at her job at the movie theater or take the evening off and go to a concert with her friends. To make her decision, Tyra adds up what she could make by working the extra shift and what she will spend at the concert. Tyra is calculating her ________.
assets
financial goals
credit
opportunity cost
