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Ramsey - Chapter 11 - Lesson 1 (Quiz)

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Why is it important to understand the cost of living when living on your own?

a)

To know how much to spend on luxury items

b)

To understand budgeting and developing good money habits

c)

To avoid paying taxes

d)

To increase your income

2.

What is a challenge of living off campus?

a)

No need to pay rent

b)

No transportation expenses

c)

Paying rent and utilities, and doing your own grocery shopping

d)

Free internet access

3.

What should you do when you join the workforce and cannot afford to buy a home?

a)

Buy a luxury car

b)

Rent a place that’s affordable and close to your work

c)

Travel frequently

d)

Invest in stocks

4.

What is a key consideration when planning to enter the military after high school?

a)

The type of car you will drive

b)

The branch of service and your rank

c)

The number of vacations you can take

d)

The amount of luxury items you can buy

5.

What is a potential expense when living off campus?

a)

Free meals

b)

No need for transportation

c)

Gas, insurance, and maintenance

d)

Free utilities

6.

What is a key term related to financial struggles due to homeownership costs?

a)

Wealthy

b)

House Poor

c)

Financially Free

d)

Debt-Free

7.

What is a key aspect of living on your own according to the document?

a)

Ignoring budgeting

b)

Understanding the cost of living

c)

Spending freely

d)

Avoiding all expenses

8.

What is one of the key money principles mentioned in the course?

a)

Spend more than you make

b)

Avoid budgeting

c)

Stay out of debt

d)

Ignore savings

9.

Which of the following is NOT listed as a cost of living on your own?

a)

Security Deposit

b)

Vacation Expenses

c)

Utilities Setup

d)

Groceries

10.

According to the text, what percentage of homeowners in 2018 had a paid-off mortgage or never had a mortgage?

a)

25%

b)

41%

c)

50%

d)

60%

11.

Which of the following is an important step before signing a lease for an apartment?

a)

Moving in without a contract

b)

Paying rent in cash only

c)

Reviewing the terms and conditions carefully

d)

Ignoring the rental agreement

12.

What is a common financial responsibility when living independently for the first time?

a)

Getting free transportation

b)

Skipping grocery shopping

c)

Relying on free housing

d)

Paying for your own utilities

13.

When budgeting for life after high school, which expense should you plan for?

a)

Housing, food, and transportation

b)

Luxury vacations

c)

None of the above

d)

Entertainment only

14.

Which of the following is a typical monthly expense when living independently?

a)

Concert tickets

b)

Birthday gifts

c)

Rent

d)

Lottery tickets

15.

What is an important reason to create a budget before moving out on your own?

a)

To ignore financial planning

b)

To spend more on entertainment

c)

To ensure you can cover all necessary expenses

d)

To avoid paying any bills

16.

Which of the following best describes 'house poor'?

a)

Having no housing expenses

b)

Living rent-free

c)

Owning multiple homes

d)

Spending most of your income on housing costs

17.

The amount of time you have to pay back a loan

a)

Principal

b)

Term

c)

Interest

d)

Opportunity Cost

18.

Independent federal agency that insures deposits in credit unions up to $250,000

a)

Federal Deposit Insurance Corporation (FDIC)

b)

National Credit Union Administration (NCUA)

c)

National Credit Union Oversite Committee (NCUO)

d)

Federal Bureau of Banking and Investing (FBBI)

19.

Where can you download a 1040 tax form?

a)

irs.gov

b)

usa.gov

c)

1040.gov

d)

usda.gov

20.

What is the name of the form that you will need complete after you are hired? Hint: It will determine how much to withhold from your paycheck.

a)

Form W-2

b)

Form W-4

c)

Form 1040

d)

Form 1099