WorksheetsDollars & Sense Assessment #1
Total questions: 33
Worksheet time: 1hrs 6mins
What does FAFSA stand for?
Federal Application for Student Aid
Free Application for Federal Student Aid
Federal Aid for Students and Families Application
Free Aid for Students and Families Application
Which of the following is an example of a fixed expense?
Monthly rent payment
Grocery shopping
Movie tickets
Gasoline for your car
What is the main difference between a need and a want?
Needs are optional, wants are required
Needs are required for survival, wants are not essential
Wants are always more expensive than needs
Needs are always related to entertainment
Which term describes the fear of missing out on something others are experiencing?
Scarcity
FOMO
Phishing
Cognitive bias
Which of the following best describes a cognitive bias?
A logical way of thinking
An error in thinking that affects decisions and judgments
A type of phishing scam
A fixed expense
If a college lists tuition, room, and board as $20,000 per year, what type of cost is this?
Variable cost
Direct cost
Indirect cost
Opportunity cost
A student receives an email asking for their FAFSA login information, promising faster processing. What type of scam is this?
Charming
Scarcity
Phishing
FOMO
Explain how the concept of scarcity can influence a student's spending decisions when choosing between needs and wants.
Scarcity makes students spend more on wants
Scarcity forces students to prioritize needs over wants due to limited resources
Scarcity has no effect on spending decisions
Scarcity only affects fixed expenses
What is a potential disadvantage of taking out student loans as Financial Aid?
They provide immediate access to education.
They may lead to long-term debt.
They reduce the cost of education.
They offer flexible repayment options.
10. What is the primary purpose of creating a personal budget?
A.
To track income and expenses to ensure spending does not exceed earnings and to allocate funds toward financial goals.
B.
To find opportunities to increase your annual income.
C.
To determine which credit cards offer the lowest interest rates.
D.
To only track variable expenses and ignore fixed costs like rent.
Which action best describes the core mechanism of the "Pay Yourself First" budgeting strategy?
A.
Ensuring that discretionary spending never exceeds 10% of total monthly income.
B.
Automatically transferring a set amount into a savings account immediately upon receiving income
C.
Paying off all credit card debt before paying any monthly utility bills.
D.
Allocating funds to various expense categories based on the previous month's spending history.
Unlike a traditional budget where some money might be left unassigned, Zero-Based Budgeting forces the user to:
A.
Spend less money than they did in the previous month.
B.
Give every single dollar a specific job or category.
C.
Only spend money using cash, avoiding all credit and debit cards.
D.
Invest 50% of their income into a retirement account.
13. What is the primary purpose of the 'envelope budgeting' method?
A.
To physically allocate a set amount of cash for specific budget categories for the month, preventing overspending.
B.
To only pay bills that have paper statements mailed to your home.
C.
To earn interest on money saved in separate bank accounts
D.
To keep all your money in a single, easily accessible checking account.
14. What does the abbreviation FTC stand for?
A.
Federal Tax Commission
B.
Federal Trade Commission
C.
Fair Trade Council
D.
Financial Training Center
15. You receive a job offer immediately after a short online chat via a messaging app like WhatsApp. Which characteristic makes this most suspicious?
A.
The job requires you to use your personal computer for work.
B.
There was no formal video or in-person interview, and the offer was given instantly.
C.
The job title uses generic terms like 'Coordinator' or 'Specialist.'
D. The job offer was given instantly with no professional interview over Whatsapp.
16. When in the hiring process should a legitimate employer ask you for sensitive information like your Social Security Number (SSN) or bank account details?
A.
During the first interview to run a background check.
B.
At the moment you fill out the online application
C.
When the recruiter first contacts you
D.
After a formal written job offer has been accepted & you are completing new-hire paperwork from an official HR email address (onboarding).
17. What is the typical minimum credit hour requirement for a student to be generally classified as 'full-time' for federal financial aid purposes at a college or university?
A.
6 credit hours per semester/quarter.
B.
12 credit hours per semester/quarter.
C.
9 credit hours per semester/quarter.
D.
15 credit hours per semester/quarter.
Which of the following is considered an indirect cost of attending college?
A.
Tuition
B.
Health insurance premiums billed directly by the university
C.
Room and board expenses paid directly to the university
D.
The cost of textbooks, personal expenses, & travel to and from home
19. Under what circumstance would a student typically have their federal student loan repayment placed into forbearance?
A.
The borrower has enrolled in graduate school at least half-time.
B.
The borrower is called up for military service
C.
The student decides to apply for a prestigious, unpaid internship
D.
The borrower faces a temporary, unpredicted illness or financial setback that prevents them from making payments
It is important to set aside money in case of …...
a decrease in expenses
income increases
routine expenses
unexpected expenses
What is a major consequence of defaulting on a federal student loan?
A.
The interest rate on the loan is automatically lowered to make payments more affordable.
B.
The government can seize your tax refunds, garnish your wages, and your credit score will be severely damaged.
C.
The borrower may be sentenced to jail time for failure to pay a federal debt.
D.
The borrower is no longer responsible for the loan, and the debt is forgiven after one year.
What is the correct definition of Gross Pay?
The total amount of money earned before any deductions are subtracted.
The money earned only from working hourly shifts, excluding bonuses or commission
The remaining balance of earnings after only federal income tax has been withheld
The amount of money an employee takes home after all taxes and deductions are taken out.
If an individual's core personal value is 'Financial Security,' which financial decision would they likely prioritize?
Taking on a large amount of student loan debt to attend a top-tier, costly university
Spending a large portion of their monthly income on frequent travel and luxury dining
Building a fully funded emergency fund equal to 6 months of living expenses.
Only buying discounted, off-brand versions of every product.
What is the most accurate definition of 'opportunity cost' in financial and economic terms?
A.
The profit earned from the best possible investment a person could have made
B.
The initial money invested that cannot be recovered after a decision is made.
C.
The total amount of money spent on a purchase or investment
D.
The value of the next best alternative that is given up when a decision is made.
Which of the following items is the best example of a variable expense?
A.
A fixed monthly payment for a 60-month car loan
B.
Monthly rent payment for an apartment
C.
The cost of groceries and dining out.
D.
The monthly premium for car insurance
Grants are primarily characterized as what type of financial aid?
A.
Work-study aid, requiring the student to work a job to earn the money.
B.
Merit-based aid, awarded for high academic or athletic achievement
C.
Need-based aid, determined by a student's demonstrated financial need
D.
Loan-based aid, requiring immediate repayment upon receipt
27. Which statement accurately describes the main effect of placing a federal student loan in forbearance?
A.
Payments are temporarily paused or reduced, but interest continues to build up on the loan balance
B.
The government pays all interest that accrues during the pause, similar to a subsidized loan deferment.
C.
All interest payments stop, and the principal balance decreases while payments are paused
D.
The loan's interest rate is automatically lowered to 0% for the duration of the payment pause
Which of the following is a qualified (approved) education expense for which you can use 529 plan funds?
The cost of a new car for commuting to school
Tuition and fees for a college, university, or trade school.
A student's monthly rent for an off-campus apartment, regardless of enrollment status
An all-inclusive vacation taken during spring break
An illegal trick, usually with the purpose of getting money or information from a person;
Scam
Fraud
Phishing
Skimming
Which of the following is an example of buying something you need?
"I'm buying a microwave because the one I have is no longer working."
"Getting my nails done at the salon will boost my spirits."
"I don't want to miss out on these deals during a sale!"
"I want to impress someone/change how they feel about me."
When we budget or buy things what do we need to know?
How much you will get paid next week.
How much money you have
Weekend plans
In personal finance, which of the following best represents a need as opposed to a want?
Setting aside money for a luxury vacation.
Purchasing enough nutritious food to maintain health
Paying for a premium subscription service, like a streaming video service
Buying the latest 1,200 smartphone.
