WorksheetsChapter Six Quiz
Total questions: 30
Worksheet time: 15mins
Multiple choice: What is the main difference between a scam and a scheme?
A scam is always illegal, while a scheme is not
A scam involves a quick deceptive action, while a scheme involves long-term planning
A scam only involves money, while a scheme involves physical goods
A scheme is only used in business, while a scam can happen in any industry
Multiple choice: Public four-year universities usually have lower tuition for which group of students?
International students
Out-of-state students
In-state students
Transfer students
Multiple choice: Which of these is an advantage of a 529 plan?
It provides tax-free investment growth when used for education
It guarantees admission to a college
It replaces the need for financial aid
It limits savings to public universities only
Multiple choice: Grants differ from loans because:
They must be repaid with interest
They are based on test scores
They are awarded based on financial need and don’t need to be repaid
They are only available to athletes
Multiple choice: What is the main difference between federal and private student loans?
Federal loans must be paid back faster
Private loans are issued by the U.S. government
Private loans are always forgiven after graduation
Federal loans typically have lower interest rates and more flexible repayment options
Multiple choice: How much of your pre-retirement income do financial planners typically recommend you aim to replace in retirement?
100%
80%
60%
50%
Multiple choice: What is one benefit of a Roth 401(k) over a traditional 401(k)?
Withdrawals in retirement are tax-free
Your employer contributes more
You don’t have to invest the money
You never pay any taxes at all
Multiple choice: Why do many people invest during their working years for retirement?
It helps them pay less in taxes immediately
Employers require it
Investments can become a major source of retirement income
It replaces the need for Social Security
Multiple choice: Which of the following best describes a lag goal?
A small habit you repeat daily
A goal that helps you track your progress week by week
A financial task completed within a few days
An ultimate outcome that takes time and effort to achieve
Multiple choice: Which situation best reflects a short-term financial goal?
Saving for a home you plan to buy in 15 years
Investing in stocks for retirement
Putting money in a savings account for a college fund you’ll use next year
Building a business to support you later in life
Multiple choice: What is a key red flag for identifying phishing scams in emails?
The email includes your full name
The email address, website links, or phone numbers are suspicious
The email offers discounts
The email requests you to respond immediately
Multiple choice: What is the main advantage of certification programs and trade schools?
They provide general education and liberal arts courses
They offer quick, job-focused training at a lower cost than a full degree
They are the same as four-year college programs in terms of length
They have high tuition costs but guarantee high-paying jobs
Multiple choice: When can students start looking for scholarships?
Only after receiving a college acceptance letter
During their first year of college
At any time, including before senior year
After completing the FAFSA
Multiple choice: How are military academies typically paid for?
They are free in exchange for military service
Out-of-pocket tuition
Private loans
Only through scholarships
Multiple choice: A key benefit of starting at a community college is:
Access to private loans
Larger class sizes
Guaranteed housing on campus
Lower tuition for the first two years
Multiple choice: What is an IRA best suited for?
Someone who is already retired
Someone who doesn’t have access to a 401(k) through work
Only government workers
People who want to avoid investing
Multiple choice: Which of the following would most likely be a time-bound goal?
“I want to be better at saving money.”
“I’ll start saving when I get my first job.”
“I want to save $500 by the end of the summer.”
“I want to retire comfortably someday.”
Multiple choice: If you have a stable job with reliable income, how might that affect your investing?
You should avoid all forms of investment
You must invest only in bonds
Your risk tolerance won’t matter
You might feel more comfortable taking investment risks
Multiple choice: Which of the following agencies helps protect consumers from scams and misleading information?
Consumer Financial Protection Bureau (CFPB)
Federal Reserve
National Bank Association
Department of Commerce
Multiple choice: What is the primary purpose of the FAFSA?
To apply for student housing
To calculate GPA requirements
To determine eligibility for financial aid
To register for standardized tests
Multiple choice: Which of the following retirement savings options is employer-sponsored?
Roth IRA
401(k)
HSA
Treasury bond
Multiple choice: Which phrase best represents the relationship between lead and lag goals?
Lag goals distract from real success
Lead goals make you forget your bigger plans
Lag goals are more useful than lead goals
Lead goals are stepping stones toward lag goals
Multiple choice: What happens if you begin collecting Social Security at age 62 instead of 67?
You receive smaller monthly payments
You get the same monthly amount
You skip paying taxes
You must keep working part-time
Multiple choice: Which of the following is an example of a direct cost for education?
Transportation
Personal expenses like groceries
Textbooks and supplies
Time spent studying
Multiple choice: What is a pension?
A government-sponsored retirement plan for all workers
A retirement plan provided by some employers that offers steady income based on salary and service
A type of tax deduction for retirees
A loan given to retirees to help with bills
Vocabulary: "Money awarded for education, often based on academic or other achievements, that
does not need to be repaid."
Scholarship
Grant
Pension
Tuition
Vocabulary: "Money for college that does not need to be paid back, often based on financial need."
Scholarship
Grant
Pension
Tuition
Vocabulary: "A regular payment made to a person during retirement, funded by their employer, a government program, or both, based on the person’s past work."
Scholarship
Grant
Pension
Tuition
Vocabulary: "The money paid to attend a school, college, or university."
Scholarship
Grant
Pension
Tuition
Vocabulary: "A person who agrees to take responsibility for a loan if the main borrower cannot pay it."
Co-signer
FAFSA
Pension
Tuition
