WorksheetsPersonal Finance Diagnostic Exam (MS)
Total questions: 25
Worksheet time: 13mins
Why is it important to have an emergency fund?
The fund is used to pay for your health and car insurance, where emergencies are common.
The fund is used to pay for college so you don't have to take out student loans.
The fund is used to pay for unexpected expenses, so that you don't have to go into debt if there's an emergency.
The fund is used to make donations to charities, who need your help to do good work.
You want to reduce the amount of loans you'll need to take out for college, so you want to save as much money as you can ahead of time. What's the BEST strategy?
Every time you receive a paycheck, spend carefully and then save any money you have left over at the end of the month.
When you receive any income, either through gifts, allowance, or working, set a goal of saving at least half before you spend the other half.
Spend whatever you want during the first 2 years of high school, but then save everything you earn during the last 2 years of high school.
Don't do anything fun during high school so you're not tempted to spend money.
Jodi wants to visit her extended family in Barbados next summer, and the flight costs $450. How much does she need to save each month if she wants to buy the flight in exactly 9 months?
$9
$45
$50
$90
A credit score is...
Assigned to everyone when they first open a bank account
Used to tell future lenders how responsible you are with debt
A record that goes onto your high school transcript
The way you know if you are making a good investment
If you have a $1000 balance on your credit card statement, which sentence below is TRUE?
You have already paid that $1000, and you don’t owe any additional money.
You need to make at least the minimum payment each month until the entire debt is paid off.
Your credit card company will take the entire $1000 from your savings account to pay that bill.
You will not need to repay that money until after you graduate from college.
Yao is trying to open a credit card. He finds a Visa with an interest rate of 14.99%. His other option is a Mastercard with an interest rate of 22.99%. Based only on interest rate, which card should he choose?
The Visa, because if he is charged interest for carrying a balance, it will be lower.
The Mastercard, because if he is charged interest for carrying a balance, it will be lower.
The Visa, because a low interest rate will lead to a high credit score.
The Mastercard, because a high interest rate will lead to a high credit score.
Which statement best describes what a budget is?
A list of all the money you spent during the last month
A plan for how much income you expect to have and how you want to save and spend it
A statement from your bank that shows your ATM withdrawals
A list for which scholarship and grants you will use to pay for college
Susan's paycheck this month says her gross pay was $400 and net pay was $350. What's the best explanation for why those two numbers are different?
Susan didn't work as many hours as she promised she would.
Susan's boss wasn't pleased with her work and reduced her pay.
Susan's employer deducted taxes from her paycheck.
Susan spent some of the money before she even got her check.
Lamar recently graduated and lives in an apartment he shares with two friends. Each of these expenses is probably a NEED in Lamar's budget EXCEPT...
Paying his portion of the electric bill
Paying $600 for his monthly rent
Making his cell phone payment on time so his service isn't shut off
Going out every Friday to celebrate 'Roommate Fun Night' with his friends
Based on this paycheck, how much money has John earned in take-home pay so far this year?
$1,524.74
$2,000.00
$30,494.81
$40,000.00
Which action would REDUCE the amount of money in Kendra's checking account today?
Using an ATM to withdraw money using her debit card
Using a gift card she received for her birthday at her favorite store
Using her smartphone to deposit a check from her employer
Using an ATM to deposit a check from her employer
Jesse is moving from Hawaii to Minnesota for college, and he wants to make sure he gets a good deal on a winter coat. What could be one of his first steps in comparison shopping?
Ask his friends in Hawaii which brands of coats they think look best.
Shop quickly so he doesn’t waste time and money on this project.
Do some reading online for which brands make the warmest winter coats.
Determine how much money he has in his savings account and plan to spend that amount.
If you buy a laptop at an Electronics-R-Us, why might it be important to keep your receipt for a whole year?
In case the laptop stops working and you want to return it.
So you can check the price monthly and make sure you got a good deal.
It’s illegal to throw away receipts for any purchase over $250.
If the store sends an employee to your home and you don’t have the receipt, they can take the laptop back.
What is compound interest?
Compound interest is earning interest on the original amount you deposited.
Compound interest is earning interest on the original amount you deposited plus any interest earned.
Compound interest is the amount of interest you are charged on your bank account balance each month.
Compound interest is earning a specific dollar amount on your bank account balance each month.
This type of investment is sold in shares. You can earn money on this investment by selling it for more than you purchased it for or through dividends. What type of investment is this?
Stock
Bond
Mutual Fund
Index Fund
Which type of investment offers the MOST diversification?
Investing in an individual stock
Investing in a bond
Investing in an index fund
There is not an investment option that is diversified.
Dora needs to purchase an insurance policy. Why would Dora need insurance?
To help manage risk and protect against financial loss.
To help build wealth over time.
To help manage her monthly income and expenses.
To help manage and build credit.
What is one way to protect yourself from identity theft?
Share your account numbers and passwords with only one trusted source.
Use the same password for all of your accounts.
Store all of your passwords in one list on your phone.
Conduct banking or online shopping on a secure wifi network.
All of the following are reasons why digital citizenship is important EXCEPT...
It helps prevent cyberbullying.
It aids in building financial independence.
It promotes online safety.
It encourages digital health and wellness.
Your friend, Hollis, has asked you to review her resume for a job. What type of information can you expect to be listed?
Courses she plans to take in high school
A list of her favorite website and apps
Her involvement in extracurricular activities & leadership roles
Her parents' names and contact information
Which is an example of a soft skill?
Speaking multiple languages
Strong communication skills
Your GPA
Advanced courses taken in school
Nila has a job interview tomorrow. What is the purpose of a job interview?
An opportunity for Nila to receive a formal tour of the company.
A time for Nila to prepare and write her resume.
A conversation between Nila and the employer to hopefully obtain a job.
A time to discuss personal financial accounts such as Nila's checking account.
After high school, Atticus is planning to attend college to pursue a degree in finance. What is a financial benefit of obtaining a college degree?
Atticus will likely have higher lifetime earnings.
Atticus will have a higher credit score.
It will be easier for Atticus to be approved for loans.
Atticus could potentially have a larger amount of debt.
Which type of financial aid is considered "gift aid" and does NOT need to be paid back?
Federal student loan
Private student loan
Grant
Work-study
What are the two main categories of a budget?
Taxes and Debt
Income and Expenses
Investments and Insurance
Spending and Saving
