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WorksheetsPersonal Finance Review Part 1 Spring 2025
Total questions: 10
Worksheet time: 5mins
Sylvester is taking out a loan and is confused by the jargon. Which of the following explanations might help him?
PRINCIPAL is how much he owes per month, and TERM is how much he owes overall
INTEREST RATE is how much the lender charges per year for the loan, and PRINCIPAL is the initial amount Sylvester takes out
MONTHLY PAYMENT is how much interest costs him each month, and TERM is the name of his lender
TERM is the length of the loan, and INTEREST RATE is how much total money he will pay
Which should you use when creating a budget - your NET PAY or GROSS PAY?
Net pay, because it’s what is reported to the government by your employer for tax purposes.
Gross pay, because it’s the total amount you’ve earned that month.
Net pay, because it’s the total amount you’ve earned minus taxes and other deductions.
Gross pay, because it’s the total amount you’ve earned minus any recurring bills you owe for the month.
In the 50/30/20 budgeting strategy, what does the 20% represent?
Savings and debt repayment
Essential needs like rent, utilities, and groceries
Discretionary spending on wants like entertainment and dining out
Retirement contributions and emergency fund savings
What does the sticker price of a college refer to?
The cost of textbooks and supplies for one academic year
The total cost a student actually pays after financial aid and scholarships
The average amount students pay after receiving grants and scholarships
The published cost of tuition, fees, room, and board before any financial aid is applied
What does a credit score measure?
The total value of your assets
The amount of savings you have
The number of credit accounts you have open
Your ability to manage and repay borrowed money
Which of the following are modern methods of accessing money from your checking account?
online bill payments
online banking/mobile apps
direct deposit
all of the above
What is the difference between a premium and a deductible in insurance?
A premium is the amount your insurance will pay, while a deductible is the amount you must pay to the insurance company.
A premium is the amount you pay per claim, while a deductible is the cost of your insurance coverage.
A premium is a one-time payment, while a deductible is paid monthly.
A premium is the amount you pay each year for insurance, while a deductible is the amount you pay out-of-pocket before your insurance starts covering costs.
In order to qualify for financial aid, prospective college students must file their _____________.
FAFSA
Financial aid letter
Parent's credit score
PSAT, SAT, or ACT scores
Which of the following best describes the amount of money you'll have if you put $1000 into a CD earning 2% annual compound interest for 10 years? You can ignore the impact of inflation in this question.
Slightly more than $1200
Exactly $1200
The same $1000 you started with
$2000
When discussing credit scores, your friends make the following statements. Which one of them is WRONG?
Kwame says, "Using your credit card every month, but paying off the balance each time, is a great way to boost your credit score.”
Jessie says, "Once you turn 18, it will be really easy to get approved for a credit card."
Joel says, "It's best to establish credit early, so you have a long credit history before you apply for a mortgage."
Casnell says, "Even if you close a credit card, the record of that card stays on your report for several years."
