WorksheetsPersonal Finance Final Exam
Total questions: 46
Worksheet time: 24mins
What are the five main aspects of Personal Finance?
Budgets, income, taxes, insurance, and retirement
Earning, budgeting, saving, spending, and giving
Emergency fund, debt, purchasing, investing, and giving
Schooling, working, eating, living, and retirement
What is the First Foundation for teens?
Get out of debt
Pay cash for college
Write out a budget
Save $500 for an emergency fund
Always make sure you have a _____
Budget
Job
Car
House
To Know your net worth, subtract your liabilities from your _____
Assets
Income
Savings
Investments
What does living paycheck to paycheck mean
All the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
A plan of action that allows a person to meet not only their immediate needs but also their long term goals
When a person’s income is devoted to expenses which, in turn, means that little to no money is put in savings
The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
What are the four walls
Education, employment, retirement, and banking
Food, utilities, shelter and transportation
Income, taxes, insurance, savings
1040, 401(K), IRA, and W-2
How many categories should you have in your budget
5
8
10
As many as you need
How often should you create a budget
Daily
Weekly
Monthly
Yearly
What should you do if you overspend in one category of your budget
Leave your budget at negative and take it from next month
Adjust your budget by removing money from other categories
Work more to make up the difference in income
Rewrite your entire budget
What is a zero-based budget?
A cash-flow plan that assigns an expense to every dollar of your income, and the goal is to have total income minus total expenses equal zero
A record that summarizes all of the income and outgo (spending) over a certain time period
Expense that occurs at various times throughout the year and tends to be in large, lump sums
What a person earns after payroll taxes and other deductions are taken out
The first step you should take when you want to make a large purpose is _____
Take out a loan
Ask for more hours at your job
Check online for the best price
Decide how much you'll need to save and the time frame to save it
Why do some accounts, like saving accounts, earn interest
Because the bank pays you to use your money
Because you keep adding more money into the account every month
Because digital currency has a high rate of return
Because your bank is trying to help you out of debt
The only place to keep your emergency fund money is ____
Certificate of Deposit
A mutual Fund
Savings Account
Under the bed
Once you are out of school, have started your career, and have zero debt, you emergency fund should have __
One month of gross income
3-6 months of living expenses
Three months of housing payments
6-9 months of net income
90% of millionaires make _____ $100,000 a year
less than
more than
Credit card commercials don’t show _____
The items being purchased
The interest rates and down payments
Company logo or brand's recognition
People making payment for months or years on purchases
What does your credit score tell companies
Your net worth
How you manage your money
How good you are at paying off debt
How much you have in your investment portfolio
What is the Second Foundation for teens
Have a $500 emergency fund
get out and stay out of debt
Pay cash for your car
Invest
How do credit and loan companies make most of their money
Charging interest to customers who only pay part of their debt
When customers go bankrupt
From the businesses' payment fees
Taking out debt in order to pay off other debts
The debt snowball method involves _____
Collecting all debt together and paying a little bit on all of it
Investing money so it compounds and removes debt
Paying off debt from smallest to largest
Taking out debt in order to pay off other debts
What does it mean to develop power over purchase
You are able to slow down and think through your motives before buying something
Negotiating prices so that you get the best price possible
Having cash ready and available for your purchase
A feeling of guilt, regret, or uneasiness after making a purchase
Your ______ controls decision making, and your ______ controls your response to stressful situations
A. Prefrontal Cortex, Amygdala
B. Amygdala, Prefrontal Cortex
Why does brand recognition help businesses?
It brings in more money from influencers
It makes advertising possible across platforms
It places products in convenience locations in physical stores
It makes their name and logo easily memorable for consumers
Why is paying for items in cash a good spending practice?
Most stores give discounts for cash payments
Using credit cards is bad for your budget
By making the payment more inconvenient, it makes you consider if it is worth the trouble
More people accept cash payments than those who accept card/digital payments
What practices have the lowest risk for getting your card information stolen?
Using your debit card and pin at a reputable store
Online purchases on unsecured websites
Handing over your card at restaurants
Storing your card information online
An entrepreneur is ___
The act of finding something out
A person who starts and runs their own business
Someone who supports, guides, and advises another person over a period of time
From a French word meaning "to sum up" or a summary
What is the Proximity Principle?
A. A widely recognized perception or impression of an individual based on conduct, experience, skills, and actions
B. Technical skills (typically learned) demonstrated with a level of competency requiring IQ (intelligence quotient)
C. Character traits and interpersonal skills requiring EQ (emotional quotient) that guide how you interact with others
D. In order to do what you want to do, you need to be around people who are doing it and in areas where it's happening
Which is NOT an example of a soft skill
Being a team player
Flexibility
Computer Skills
Cooperation
What is the key to failure
Avoiding it
Being ashamed of it
Learning from it
Working until you are better than someone else
What is the fourth foundations for teens
Paying cash for college
Get out and stay out of debt
Pay cash for your car
Invest your money
You can fund your education with the right combination of _____
Student Loans
Savings and Mutual Funds
FAFSA forms
Grants, Scholarships, and work
A two-year degree with specialized training, a flexible schedule, and lower educational costs is called a(n) _____
Associates Degree
Bachelors Degree
Doctorate Degree
Masters Degree
Payday loans are an example of ______, and can be predatory in nature
Alternate Financial Service
Low-risk debt
Money marketing
Account add-ons
With certificates of deposit, you have to pay a penalty for ___
Investing more money
Avoiding the taxes
Withdrawing your money early
Changing the rate of return
Life insurance guarantees your loved ones get a certain amount of money when you
are born
fall sick
retire
pass away
______ will provide money to replace lost income for years - even up to retirement
Short-term disability
Long-term disability
IRAs
Life Insurance
_____ pays for loss or damage to your car caused by anything other than a collision
Comprehensive Insurance
Liability Insurance
Umbrella Insurance
Damage Insurance
What is the main IRS form that most Americans use to file their taxes?
1040
1099
W-2
W-4
What is a leasing contract
A law that prevents managers from housing discrimination
A law that prevents housing payments from being more than 25% of a person's income
A legal document that outline why a renter (tenant) is denied residency
A legal document that allows the renter (tenant) to use the property for a period of time
What is home equity
The taxes that you pay on a home when you do improvements
The loan that you take out to fund a home purchase
The difference what you still owe on your home and what it is worth
The cost of maintaining a certain style of living
What is the Fifth Foundation for teens?
Paying cash for college
Build wealth and give
Get out and stay out of debt
Pay cash for your car
Investing your money earns you more money because of ___
Interest
Compound Growth
Liens
Tax-withholdings
Roth IRA, 401(k), 403(b), 457, and Simplified Employees Pension are all examples of
Retirement plans
Investments
Insurance
Tax benefits
Social security benefits are meant to replace _____% of your income
25
40
50
75
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 is NOT a successful budgeting strategy?
Keep some extra money in your budget for emergencies
Pay with a credit card if you have a hard time sticking to a budget
Think about which items are your most important needs
Revisit your budget regularly and make adjustments
