WorksheetsPersonal Finance final study guide
Total questions: 35
Worksheet time: 25mins
Name
Class
Date
1.
withholdings & deductions
a)
Withholdings increase net pay.
b)
money taken out of your paycheck
c)
Deductions are added to gross pay.
d)
Withholdings are optional for employees.
2.
difference between hourly wage & salaried employees
a)
Hourly wage employees are paid per hour worked, while salaried employees receive a fixed salary regardless of hours worked.
b)
Hourly wage employees receive a fixed salary based on performance.
c)
Hourly wage employees do not receive benefits, while salaried employees do.
d)
Salaried employees are paid per hour worked, similar to hourly employees.
3.
tax returns & how long they should be kept
a)
Keep tax returns indefinitely.
b)
Keep tax returns for five years.
c)
Keep tax returns for one year.
d)
a document filed with a tax authority that reports income, expenses, and other relevant financial information and should return for seven years.
4.
how much people pay in taxes
a)
The amount people pay in taxes varies significantly based on income, location, and tax regulations.
b)
People do not pay taxes if they earn below a certain amount.
c)
Taxes are only paid by businesses, not individuals.
d)
Everyone pays the same flat tax rate.
5.
sales tax
a)
Sales tax is a fee paid directly to the manufacturer.
b)
Sales tax is only applicable to online purchases.
c)
Sales tax is a fixed amount deducted from the sale price.
d)
Sales tax is a percentage of the sale price added to the cost of goods and services.
6.
income tax
a)
Income tax is a tax on capital gains.
b)
a type of tax governments impose on the income that businesses and individuals generate
c)
Income tax is a tax on sales.
d)
Income tax is a tax on property.
7.
excise taxes
a)
Excise taxes are a type of income tax.
b)
Excise taxes apply to all goods and services equally.
c)
Excise taxes are taxes on specific goods and services.
d)
Excise taxes are only levied on luxury items.
8.
inheritance tax
a)
A tax on gifts given during a lifetime
b)
A tax on property sales
c)
a tax paid by a person who inherits money or property of a person who has died
d)
A tax on income earned during a lifetime
9.
who gets tax money
a)
Individuals are the primary recipients of tax money
b)
Businesses receive tax money
c)
Governments (local, state, and federal) get tax money.
d)
Charities collect tax money
10.
how to do your taxes
a)
Ignore all forms and documents
b)
Only file if you owe money
c)
Gather documents, choose a filing method, fill out forms, review, and file.
d)
Estimate your taxes based on last year's income
11.
tax refunds
a)
Tax refunds are fees charged to taxpayers.
b)
Tax refunds are government grants for businesses.
c)
Tax refunds are penalties for late payments.
d)
Tax refunds are amounts returned to taxpayers for overpaid taxes.
12.
ways to lower what you pay in taxes
a)
Claim personal expenses as business expenses
b)
Invest in high-risk stocks
c)
Avoid filing taxes altogether
d)
Maximize deductions and credits, contribute to retirement accounts, and consult a tax professional.
13.
why you should rent instead of purchase property
a)
You should rent instead of purchase property for flexibility and lower financial risk.
b)
Renting limits your ability to invest in other opportunities.
c)
Owning property guarantees financial stability.
d)
Renting is always more expensive than buying.
14.
how much you should pay in rent
a)
50% of your gross monthly income
b)
25% of your net monthly income
c)
15% of your total income
d)
30% of your gross monthly income
15.
30 year mortgage vs 15 year mortgage
a)
A 15-year mortgage is better for lower monthly payments.
b)
A 30-year mortgage is better for lower monthly payments; a 15-year mortgage is better for paying less interest overall.
c)
A 30-year mortgage requires a larger down payment than a 15-year mortgage.
d)
A 30-year mortgage has higher interest rates than a 15-year mortgage.
16.
definition of cost of living
a)
The cost of living is the total income earned by an individual.
b)
The cost of living refers to the price of luxury goods only.
c)
The cost of living is the amount of money spent on entertainment and leisure.
d)
The cost of living is the amount of money required to maintain a certain standard of living.
17.
definition of rent
a)
Rent is a payment for the use of property or land.
b)
Rent is a tax on property ownership.
c)
Rent is a fee for borrowing money.
d)
Rent is a salary paid to employees.
18.
why you should not buy a home
a)
Buying a home guarantees a profit in the future.
b)
You should not buy a home if you are not ready for the long-term financial commitment and potential risks involved.
c)
Homeownership is always cheaper than renting.
d)
You can easily sell your home whenever you want.
19.
advantages of living on a college campus vs renting an apartment
a)
Living on a college campus offers convenience, community, and included amenities.
b)
More isolation from peers
c)
Less access to campus resources
d)
Higher rent costs with no community
20.
value of homes
a)
The value of homes varies widely depending on various factors.
b)
Home values are determined solely by the size of the property.
c)
All homes have the same value regardless of location.
d)
The value of homes is fixed and does not change.
21.
when you know you are ready to purchase a home
a)
You should buy a home when you feel pressured by friends.
b)
You are ready when you have a large credit card debt.
c)
You are ready if you have not saved any money.
d)
You are ready to purchase a home when you have financial stability and a clear plan.
22.
only time you should go in debt to make a purchase
a)
For luxury items that depreciate quickly.
b)
To finance vacations and non-essential expenses.
c)
For essential assets that appreciate in value or generate income.
d)
For impulsive purchases without a plan.
23.
rental agreement/leasing contract meaning
a)
A rental agreement is a verbal understanding between friends.
b)
A leasing contract is only for commercial properties.
c)
A rental agreement is a document for buying a house.
d)
A rental agreement or leasing contract is a legal document that defines the terms for renting a property.
24.
advantages of purchasing a home
a)
Limited investment opportunities
b)
Increased mobility options
c)
High maintenance costs
d)
Stability, equity building, tax benefits, potential appreciation, and customization.
25.
fixed rate loans/mortgages meaning
a)
Fixed rate loans/mortgages are loans with a constant interest rate throughout the loan term.
b)
Loans that are only available for short terms, typically under 5 years.
c)
Mortgages that require a large down payment and high credit score.
d)
Loans with variable interest rates that change over time.
26.
stock
a)
Stock is a type of bond.
b)
Stock is a form of debt.
c)
Stock represents a loan to a company.
d)
Stock represents ownership in a company.
27.
mutual funds
a)
Mutual funds are only for wealthy individuals.
b)
Mutual funds are a type of insurance policy.
c)
Mutual funds can only be managed by banks.
d)
Mutual funds are pooled investment vehicles managed by professionals.
28.
diversification meaning
a)
Diversification is only about investing in stocks.
b)
Diversification is a risk management strategy that involves mixing a wide variety of investments within a portfolio.
c)
Diversification means putting all your money in one asset.
d)
Diversification is a strategy to minimize returns.
29.
compound growth meaning
a)
Compound growth refers to the increase in value of a single asset over time.
b)
Compound growth is the process of earning interest only on the initial investment.
c)
Compound growth is the growth of an investment that does not consider interest.
d)
Compound growth is the growth of an investment where interest is earned on both the initial principal and the accumulated interest.
30.
rate of return on investment
a)
ROI = (Net Profit / Cost of Investment) x 100
b)
ROI = (Cost of Investment - Net Profit) x 100
c)
ROI = (Net Profit + Cost of Investment) / Cost of Investment
d)
ROI = (Total Revenue / Total Expenses) x 100
31.
when & what you should invest in
a)
Invest in diversified assets during market dips.
b)
Invest only in stocks during bull markets.
c)
Avoid investing during any market fluctuations.
d)
Put all your money in a single asset class.
32.
good investments vs bad investments
a)
Good investments are short-term; bad investments are long-term.
b)
Good investments are only in real estate; bad investments are in stocks.
c)
Good investments are stable and appreciate in value; bad investments are high-risk and depreciate.
d)
Good investments are always risky; bad investments are guaranteed to appreciate.
33.
what is Social Security & how does it work
4 lines
34.
why are people required to pay taxes & examples of what it funds
4 lines
35.
examples of costs of living on your own
4 lines
100 %
