Worksheets2025 Personal Finance Review
Total questions: 52
Worksheet time: 3hrs 24mins
How do wages and salary differ?
Wages describe what you earn on an annual basis
Salary describes what you earn on an annual basis
Wages mean you have a standard amount in each paycheck
Salaried employees are likely to be paid for overtime
Which of the following are TRUE about gross income and net income? (hint: choose 2 correct answers)
Gross income and net income are the same
Net income is sometimes called "take home pay"
Gross income is the total amount earned before deductions
Net income is the total amount earned before deductions
Which of the following may NOT always appear on your paycheck stub?
Gross Pay
Net Pay
Your Role/Title
Local Tax
It's common to have all of the following expenses BEFORE signing a lease EXCEPT...
Renter's Insurance
Application fee
Application deposit
Apartment hunting expenses
Which of the following might you pay WHEN you sign your lease?
Finder's fee
Application fee
Security deposit
Renter's insurance
According to a rule of thumb, rent shouldn't take up more than ___ % of your take-home pay.
7-12%
10-15%
15-20%
25-30%
Which of the following would typically NOT be covered under renter's insurance?
A friend slips and twists his ankle in your living room
Your apartment is broken into and your laptop is stolen
A fire destroys 80% of your belongings
Your apartment is flooded, destroying your furniture
Which of the following is a step you can take to mitigate the risk of buying a used car? (hint: choose 2 correct answers)
Get a vehicle history report
Have a mechanic inspect the car after you buy it
Skip the test drive; you have time after you buy it to drive
But a certified, pre-owned car from the dealer
Which of the following is NOT a cost of owning a car?
License and Registration fees
Gasoline
Utilities
Insurance
Which of the following reasons would explain why Justin has decided to forgo owning a car? (hint: choose 2 correct answers)
Public transportation infrastructure does not exist
The walking score in his city is high
He only has his driver's permit
There are numerous car dealerships in his area
About how much of your income should go towards transportation?
5-10%
15-20%
25-30%
35-40%
Jenna wants to decrease the amount of $ she spends on food. Which of the following would help? (hint: choose 2 correct answers)
Decide what she will make for dinner that same day
Go to the grocery store with a list
Go to the store whenever she needs 1-2 items
Keep staple foods (e.g. beans, rice) readily stocked
Which of the following is TRUE about unit pricing?
Unit prices can help you compare the prices of similar items
Unit price labels are universal throughout the country
It's easy to compare quantities on a unit price label
All states require unit price labels
A 18oz box of cereal costs $4.99. How would you calculate the unit price?
18oz / $4.99
9 oz / $2.50
$4.99 / 18oz
(18oz) x ($4.99)
6 cans of tomato soup cost $14.99. What is the unit price?
About $1.50
About $2.50
About $3
About $3.50
Jabar broke his leg while riding his bike. How does having health insurance help him?
Jabar will likely have to pay $0 towards his medical costs
Jabar will likely have to cover 100% of his medical costs
Jabar will likely owe a portion of his medical costs
Having health insurance makes no difference
What is a deductible?
The cost you and your insurance share
The amount your insurance pays before you pay
The discount you get on your health insurance every year
The amount you pay before your insurance begins to pay
How can consolidating your student loans help your budget? (hint: choose 2 correct answers)
You'll pay more in interest over time
You can manage your money more easily since you're making just one payment
Your monthly payment may decrease
Your interest rate is guaranteed to decrease
How does the 50/30/20 rule of thumb for budgeting allocate your income?
50% Needs, 30% Wants, 20% Savings & Debt Repayment
50% Wants, 30% Needs, 20% Savings & Debt Repayment
50% Savings & Debt Repayment, 30% Wants, 20% Needs
50% Needs, 30% Savings & Debt Repayment, 20% Wants
Which of the following is an example of buying something you NEED?
"I want to replace something that is no longer working."
"I want to impress someone/ change how they feel about me."
"I'm feeling down, and I need to boost my spirits."
"I don't want to miss out on these deals during the sale!"
Where do banks get the money to lend out to consumers?
From their clients' credit card accounts
From their clients' savings accounts
From the Federal government
From their own money vaults
How do banks make money off of the credit they issue?
They charge a large, one-time fee at the start of the loan
They take out a small fee each month from your checking account
They charge a high interest rate on the loan
This is a trick question - they DON'T make money!
Which of the following is NOT a typical type of credit?
Mortgage
Overdraft
Credit Card
Pre-Paid Debit Card
Which of the following is typically a SECURED loan?
Auto Loan
Student loan
Credit Card Balance
Overdraft
If the collateral for your secured loan can be taken away, why get a secured loan at all?
Because they usually have a higher interest rate
Because they usually have a lower interest rate
Banks give you an extra 90 days to make a missed payment
Banks typically don't charge interest for the first 12 months
What may NOT impact the interest rate on your loans?
Your relationship with the financial institution
Your credit score
The loan amount
Your level of education
True or False: A cosigner's credit history can be affected by the loan they are cosigned on.
True
False
Why does the amount of INTEREST you owe on a loan decrease over time?
The institution trusts you more, so they lower the interest
With each payment, principal increases; so interest lowers
Banks are legally required to lower interest rates over time
With each payment, principal decreases, so interest lowers
What is the purpose of a Schumer box when applying for a credit card?
It summarizes information like interest rates, fees, and grace periods
It summarizes how much interest you have accrued in the last 90 days
It gives a detailed explanation of your credit history
It tracks your spending habits to help you find ways to budget your money
How do you avoid paying interest on your credit card (or any other loan for that matter)?
Always make the minimum payment over time
Pay interest 1st, then pay what you can on leftover balance
Always make the full payment on time
Pay the principal 1st, then pay what you can on interest
Which is TRUE when you make only the minimum payment each month?
You ar charged interest on the remaining balance
Your credit line is restored to its maximum amount
Credit card companies have permission to sell your information
It is the fastest way to pay off your debt
When can personal loans be a better option than credit cards? (hint: choose 2 correct answers)
If you want to earn rewards and enjoy travel benefits
If you want a lower interest rate
If you want purchase protection & warranties
If you increase your credit score
Which is TRUE about Payday loans?
You can pay them back in installments
You are charged a 1-time fee for the loan
Most people successfully pay these loans back
You need a credit card account to get one
A shorter auto loan term means ____ monthly payments & ____ total interest you'll pay.
higher, less
lower, more
higher, more
lower, less
Which of the following is TRUE about an auto LOAN and a LEASE?
You must give the car back when a lease has expired
Only a loan requires some kind of upfront payment
You make monthly payments on both
Monthly payments tend to be lower with a lease
All of the following can happen when you fail to make a mortgage payment EXCEPT:
After one missed payment, you can lose your home
You will be charged fees
Your credit score can take a hit
Foreclosure process starts after 30 days of missed payment
How are credit cards and debit cards different?
They're both linked to a checking account in different ways
Some debit cards say VISA on them; credit cards don't
With a credit card, you are borrowing from yourself
A credit card can offer perks such as purchase protection
Which of the following is most likely a fixed-rate unsecured debt?
Student loan
Credit card
Mortgage
Auto loan
Which statement is true about debit and credit cards?
More businesses accept credit cards than debit cards
You get a monthly statement for a credit card, but not for a debit card
Credit cards withdraw money directly from a bank account; debit cards don't
Debit cards withdraw money directly from a bank account; credit cards don't
Which of the following factors will most likely INCREASE the overall cost of your loan?
A lower interest rate
A longer loan term
Offering collateral to secure the loan
Paying a higher down payment
What percentage of Americans with credit card debt won't be able to pay it off within a year?
50%
70%
25%
10%
According to the graph, which type of debt has the second-highest percentage increase after student loans?
Auto Loan
Mortgage
HE Revolving
(Home Equity
Lines of Credit)
Credit Card
What type of loans could result in the seizure of your property if you fail to make payments on time?
Student Loans
Tax Debt
Mortgages
Credit Card Debt
Auto Loans
Which type of loan can lead to wage garnishment if not paid on time?
Auto Loans
Child Support
Mortgages
Student Loans
Tax Debt
What is one of the reasons payday loans can trap consumers in a cycle of debt?
They have a long repayment period.
They offer lower interest rates compared to other loans.
They are due in a short time in full, with higher fees and interest rates.
They are only available to high-income earners.
What is a common outcome of Asset Based Lending and Equity Stripping in Predatory Lending?
It may lead to borrower satisfaction due to increased asset value.
It may lead to borrower obtaining better interest rates in the long run.
It may lead to borrower losing their home or their car.
It may lead to borrower receiving financial education.
What is the first step in beginning to manage your debt?
Finding a debt counselor to discuss your options.
Making a budget to reduce your expenses.
Finding out how much you owe so you can make a plan.
Consolidating all your debts into one payment.
What is the recommended minimum action to take with your debts?
Paying off the debt with the highest interest rate first.
Making at least the minimum payments and always paying on time.
Transferring your debt to a credit card with a lower interest rate.
Borrowing money from friends or family to pay off the debt.
Which options could you explore if you find yourself overwhelmed with debt and unable to make all your payments?
Taking out a payday loan to cover the payments.
Ignoring the debts until you have enough money to pay.
Credit Counseling, Debt Consolidation, Debt Settlement, Bankruptcy.
Only paying the debts with the highest interest rates.
Which accurately compares the interest and payback term of the debt avalanche vs. snowball methods?
The avalanche pays more interest and has a longer term than the snowball
The avalanche pays more interest and has a shorter term than the snowball
The avalanche pays less interest and has a longer term than the snowball
The avalanche pays less interest and has a shorter term than the snowball
Which predatory lending tactic should individuals be cautious of?
Balloon payments
Subscription services
Origination fees
Loan skimming
Which statement about debt in America is accurate?
There is no excuse for anyone to have debt. If you work hard enough, you should always be able to avoid debt.
High debt balances are relatively uncommon in America and usually only the result of an emergency or surprise expense.
Many people have many different types of debt, and it is relatively common for Americans to carry some debt.
Credit card debt makes up the largest portion of household debt for most Americans today.
