WorksheetsPersonal Finance Final Exam 2025
Total questions: 47
Worksheet time: 24mins
You should always make sure you have a
credit score
budget
direct deposit
credit card
What is the First Foundation?
pay cash for college
build wealth and give
save $500 emergency fund
open a checking account
A money principle to keep in mind is to live on (a) _ you make.
more than
the same as
What is financial literacy?
the skills to read financial documents for personal finance classes, goals and statements
the knowledge and skill base necessary for people to be informed consumers and manage their finances effectively.
the content provided in the bank statements for consumers
the curriculum provided to college students about finances for their degrees
It is possible to pay for college using cash
TRUE
FALSE
Personal finance is 20% (a) and 80% (b) .
head knowledge
behavior
cause
reactions
Avoiding debt can lead to financial freedom and hope.
TRUE
FALSE
Which of the following is NOT a component of a budget?
credit score
saving
income
giving
How often should you create a budget?
daily
weekly
monthly
biannually
What kind of money counts as income?
only the money you make at your job
money in your savings account
all money that you receive, including money from your job and gifts like birthday money
only money deposited into your bank account
Commission is when you make money based on the percentage of ________.
total sales for the whole store
investments
budgets
total sales of items sold
Your monthly rent payment is an example of a variable expense.
TRUE
FALSE
The first step you should take when you want to make a large purchase is...
ask your parent to loan you the money with low interest
get a new credit card
decide how much you’ll need to save and the time frame you want to save it in
selling something and use the proceeds
The best way to build wealth is to start investing early. You should start investing for retirement ...
as soon as you have extra cash
once you have a fully-funded emergency fund
once you’re out of college, living debt-free, and have 3-6 months of living expenses saved
when the stock market is performing really well
Debt is a tool to use to make you wealthy.
TRUE
FALSE
The purpose of an emergency fund is to...
be able to cover an unexpected expense with cash and protect you from having to pile up debt when something goes wrong
have some extra money in your checking account in case you need to transfer some to your spending categories
teach you how to invest in growth stock mutual funds
teach you discipline- saving is purely a good exercise in self-control
Banks and lenders use credit scores to determine...
the likelihood someone is able to repay debt
how much collateral someone has available to put up for a loan
A person's financial responsibility
how successful someone is
When you finance a new car, you will end up paying more than the sticker price.
TRUE
FALSE
Your greatest wealth building tool is .
tax cuts
your income
your credit score
Leasing a car is a method of financing where someone (a) .
never pays interest or fees
is paying off two or more vehicles at a time
making monthly payments on but does not own the vehicle
does not have to pay any taxes on the vehicle for the first 6 months.
Which is an example of an appreciating asset?
a computer used for business purposes
a piece of farming equipment
a new car purchase within the past 6 months
a home
Once you turn 18, you should check your credit report regularly ….
for errors or signs of identity theft
to keep an eye on your credit score
to make a plan for improving your credit score
only if you have a credit card
The debt snowball method involves...
waiting until the winter months to begin paying off debt
paying off debts from largest to smallest
pooling together money from other people to pay off your debt
paying off debts from smallest to largest
A credit score is an indicator of how well someone pays off their debt, not how well they handle money.
TRUE
FALSE
The smartest way to buy a car is to.
take out a personal loan
finance it but pay the debt as quickly as you can
pay cash
A car is a depreciating asset.
TRUE
FALSE
What does it mean to develop power over purchase?
you are powerless in the face of an impulse purchase
you can make decisions very quickly when it comes to purchasing items.
you are able to slow down and think through your motives before buying something
you have power to purchase whatever you want, and you do so.
Liquidity is ...
how quickly and easily you can access your money
a great way to find a financial service that's right for you
when you deposit silver or gold and they liquify it for you
how money flows from bank to bank
A security that represents part ownership of a company is called _______
a.) stock
b.) bond
c.) mutual fund
d.) debenture
When you invest in a mutual fund, you are contributing to a pool of money that will be...
given to hundreds of local charities in your area
invested in a mix of stocks and bonds
taxes based on each individual investor’s annual salary
put into a separate savings account for your children to inherit someday
Diversification reduces your ______ by using a mix of investment types in your portfolio.
c.) risk
a.) income
b.) taxes
d.) expenses
Investing your money earns you more money because of...
checking accounts
mortgage payments
compound growth
short-term savings
Never invest your money is because it/they are extremely risky.
CDs
single stocks
real estate
When using a ROTH IRA, you invest your money after paying taxes, and the investment grows tax-free.
TRUE
FALSE
Insurance helps you transfer the (a) from your bank account to the insurance company.
risk
money
insurance
health
If you are unable to live in your home while it is being repaired, (a) coverage will cover those additional living expenses.
renter’s insurance
loss of use
personal property coverage
dwelling insurance
Your has all the information you’d need in case of an accident.
local police station
liability insurance
insurance card
Renter’s insurance will cover your belongings if there is ever a fire, theft, or vandalism.
TRUE
FALSE
(a) will cover you if someone steals your personal information.
long-term care insurance
identity theft protection
supplemental insurance
short-term disability
What federal payroll tax goes toward social security and medicare?
FICO
FICA
FOCA
FACO
April 15 of every year- the usual deadline to file your taxes- is also called what?
tax day
deadline day
due day
equinox day
This type of tax is paid by anyone who owns land, a home or commercial real estate.
wealth tax
sales tax
excise tax
property tax
Mississippi’s minimum wage is
$7.25
$7.50
$9.00
$9.25
Every state in the United States has a state income tax.
TRUE
FALSE
Dave says you should adjust which tax form to come as close to zero tax liability as possible when filing your tax return?
W-2
W-4
1040
1099
All are required tax deductions from your payroll except
federal income tax
health insurance
social security tax
medicare tax
Sales tax differs from state to state.
TRUE
FALSE
