WorksheetsHousing & Insurance Test Review
Total questions: 22
Worksheet time: 11mins
Name
Class
Date
1.
Which term describes the average cost of housing, food, clothing, and other essentials needed to maintain a certain standard of living?
a)
Mortgage principal
b)
Premium
c)
Grace period
d)
Cost of living
2.
What does it mean when a person is house poor?
a)
They rent instead of own
b)
They spend so much income on housing that they struggle to reach other financial goals
c)
They own a very old house
d)
They have no decorations in their home
3.
Why is renting a smart first step for many young adults?
a)
Renting is low risk and helps people learn what they want before buying
b)
Renting is always cheaper than owning
c)
Renters never pay bills
d)
Renting allows people to avoid choosing a location
4.
Which factor should you definitely have before you consider yourself ready to buy a house?
a)
A fully funded emergency fund
b)
No down payment
c)
A desire to move every year
d)
Large amounts of credit card debt
5.
Why is owning usually cheaper than renting in the long term?
a)
Landlords often pay people to live in their homes
b)
Rent prices never change
c)
A fixed rate mortgage locks in payments while rent increases with inflation
d)
Home values do not increase over time
6.
Why is it important to develop good money habits while you are still young?
a)
Travel plans
b)
Shopping routines
c)
Types of furniture
d)
Good money habits
7.
What percentage of your take home pay should your monthly rent ideally stay below?
a)
10 percent
b)
25 percent
c)
41 percent
d)
50 percent
8.
Why is it important to compare rent prices, utility costs, and location before choosing an apartment?
a)
Because these factors determine your total cost of living
b)
Because landlords always cover utilities
c)
Because rent is the same everywhere
d)
Because the closest apartment is always the cheapest
9.
Why is renting recommended until you are financially ready to buy a home?
a)
So you can buy a home the right way
b)
So you can move every single year
c)
So you can avoid saving money altogether
d)
So you can purchase the most expensive home possible
10.
What major financial steps should you complete before buying a house?
a)
Be out of debt, have a full emergency fund, and save enough for a down payment
b)
Sign a rental agreement
c)
Purchase auto insurance
d)
Save only for furniture
11.
Insurance helps you transfer the risk to the insurance company.
a)
Risk
b)
Profit
c)
Entertainment
d)
Monthly salary
12.
Health insurance is not necessary if you are young and healthy.
a)
True; it's only important after age thirty
b)
True; young people do not need medical care
c)
False; it's only required if you play dangerous sports
d)
False; medical emergencies can happen to anyone
13.
When would someone file an insurance claim?
a)
When they want to cancel their insurance
b)
When they want a new insurance card
c)
When they request payment from the insurance company for a covered loss
d)
When they earn a reward
14.
Which type of auto insurance covers damage to your car after you crash into another vehicle or object?
a)
Comprehensive
b)
Collision
c)
Liability
d)
Personal injury protection
15.
What is the main difference between homeowners insurance and renters insurance?
a)
Renters insurance protects only landlords
b)
Homeowners insurance is cheaper
c)
Renters insurance covers the building structure
d)
Homeowners insurance covers the structure, renters does not
16.
What is the main advantage of having a fixed rate mortgage?
a)
Your monthly principal and interest payment stays the same over time
b)
Your interest rate drops automatically every year
c)
The bank pays your mortgage if you miss a payment
d)
You can move anytime without penalty
17.
What is one major benefit of renting instead of owning a home?
a)
Renters are not responsible for major repairs or maintenance
b)
Renters build equity faster than homeowners
c)
Rent payments never increase
d)
Renters automatically get free insurance
18.
Why is renters insurance still important even though renters do not own the building?
a)
It pays for the landlord’s property damage
b)
It replaces all future rent payments
c)
It protects the renter’s belongings from theft, fire, and other covered events
d)
It covers the cost of buying a home
19.
Why is mortgage principal an important concept for new homeowners to understand?
a)
It shows how much money they still owe on their home loan
b)
It determines whether the home needs repairs
c)
It tells them how much their home will sell for
d)
It replaces the need for a budget
20.
Why is having the right amount of homeowners insurance essential?
a)
It guarantees your house will never be damaged
b)
It makes your mortgage payments disappear
c)
It ensures you can rebuild or repair your home at current costs after a major loss
d)
It covers the cost of new furniture each year
21.
Getting good grades, driving safely, and driving an older car are examples of ways you can:
a)
lower your auto insurance costs
b)
protect you from accidents
c)
cost you extra money
d)
pass your driver's education test
22.
Fee that covers the cost of any future damage the renter might cause to the unit.
a)
Material Resources
b)
Renter's Insurance
c)
Security Deposit
d)
Interest
100 %
