MC #1
Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?
a. Dining out
b. loan payment on a new car
c. Expenses for new clothes
d. postponing a purchase for a big screen TV
b. loan payment on a new car
How can unit pricing help you save money on groceries?
You can calculate unit price to get the most for your money
You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal?
a. 6 months
b. 1 year
c. 2 years
d. 3 years
c. 2 years
Explain how setting a financial goal can help you create a budget?
Creating financial goals helps you determine your priorities, needs, and wants. Then you can tailor your budget towards your goals.
One way the grocery store tricks you into spending more money than you budgeted for is...
a. Being open early in the morning and late at night
b. Paying their cashiers and baggers more
c. Putting high priced items at eye level and lower cost items above or below eye level
d. Accepting digital and print coupons
c. Putting high priced items at eye level and lower cost items above or below eye level
Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?
a. His gross pay is $2,500 and net pay is $3,000
b. His gross and net pay are $3,000
c. His gross and net pay are $2,500
d. His gross pay is $3,000 and net pay is $2,500
d. His gross pay is $3,000 and net pay is $2,500
What role does a budget play in managing your personal finances? What steps can you take over time to make sure that your budget works for you?
A budget is a simple yet powerful tool that allows you to keep track of the money you have and where it is going. Keeping a budget can help you work towards and achieve your financial goals., Steps could include track your expenses and create a monthly budget and regularly evaluate
Which of these boxes of cereal has the LOWEST unit price?
a. Cereal A which costs $ for a oz box
b. Cereal B which costs $5.00 for a 32 oz box
c. Cereal C which costs $2.50 for a 10 oz box
d. Cereal D which costs $4.50 for an 8 oz box
b. Cereal B which costs $5.00 for a 32 oz box
List one pro and one con of being a freelancer or independent contractor in the gig economy?
Self employed but must pay taxes
no insurance or paid holidays
many more answers
Which statement accurately describes how the 50/20/30 Rule would break down your take-home pay?
a. 50% on wants, 20% on saving, and 30% on needs
b. 50% on saving, 20% on needs, and 30% on wants
c. 50% needs, 20% on saving, and 30% on wants
d. 50% on saving, 20% on wants, and 30% on needs
c. 50% needs, 20% on saving, and 30% on wants
You are putting together your first post-graduation budget. Your net pay is $2,500 per month and you estimate that your monthly expenses will be $2,625. How would you describe your budget?
a. You have a surplus of $125
b. You have a deficit of $125
c. You have a deficit of $2,625
d. You have a surplus of $2,500
b. . You have a deficit of $125
Give one example of each of the following types of expense: Fixed, Variable, and Whammy
answers may vary
Which description is most accurate for a Zero-Based Budget?
a. You put every dollar of your net pay into a budget category each month
b. You spend your checking account balance down to $0 every month
c. You spend your saving account balance down to $0 every month
d. You pay every one of your debts down to $0 every month
a. You put every dollar of your net pay into a budget category each month
What is the formula for calculating unit price?
total price/total units
What are 4 popular budgeting strategies?
50/20/30, pay yourself first, zero based budget, envelope budget
You overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT:
a. A budget can help you identify any bad spending habits
b. Using a budget can allow you to work towards your financial goals
c. Having a budget can help you create an emergency fund
d. Having a budget is a requirement for obtaining a mortgage
d. Having a budget is a requirement for obtaining a mortgage
What is the difference between gross pay and net pay?
gross pay is before deductions
Which of the following is TRUE about a lease agreement?
a. A lease is an agreement between you and your roommates that you submit to the apartment owner.
b. You never have to pay any fees when you sign a lease. If you do, that means it is a scam.
c. A lease often has information about your prior housing experience; it's a record that the apartment owner can use to see if you are a good candidate
d. A lease is an agreement that includes details about rent, apartment policies, vacating, etc.
d. A lease is an agreement that includes details about rent, apartment policies, vacating, etc.
What are 7 budgeting tips when you are a gig worker?
calculate average expenses and income, pay yourself first, put money aside for taxes, avoid relying on debt, save for the lack of benefits and vacation days, don't splurge on good months, plan for hidden expenses
List 2 pros and 2 cons of having a roommate?
Save money on rent/miss payment, Help clean/make mess, friends/might not get along, Share furniture/ not a lot of privacy
The defining characteristic of a job in the gig economy is...
a. Workers are paid by the federal government
b. Workers decide how much they want to pay in taxes
c. Workers receive free phones and wifi connections
d. Workers complete short-term work for many different clients
d. Workers complete short-term work for many different clients
There are 7 ways to help decide where to live. What are they?
cost of living, job availability, desirability and happiness, crime rate, quality of education, commute, and quality healthcare
Sadie is a freelance social media specialist. Companies can hire her to improve their social media presence. Why is it particularly important that Sadie, and other freelancers like her, have an emergency fund?
a. Freelancers charge a very low hourly rate, so Sadie probably doesn't get paid much
b. Sadie doesn't have guaranteed work every day, so she needs money in case she goes a while between clients
c. Sadie will need a large emergency fund in order to make her monthly insurance payments
d. Sadie's job requires a lot of expensive specialty equipment that will always need replacing
b. Sadie doesn't have guaranteed work every day, so she needs money in case she goes a while between clients
We discussed 6 different types of fees for renting. List and explain 3.
Application Fee is intended to cover the cost of running a credit and background check. It is nonrefundable, Administrative Fee - usually attached to larger complexes where a property management company runs the show, Application Deposit - This is also known as a “good faith deposit” or a “holding deposit.”This reserves the unit for you until you're ready to pay the security deposit and sign the lease If you decide to back out you lose the deposit, it you stay you will receive a refund, Broker Fee - most cities the landlord pays the broker fee which is a commission the broker earns when they successfully rent out a unti. Most fees are 12-15% of the annual rent, Pet Fees - Pay an extra fee to have a pet, which is nonrefundable. A pet deposit is refundable and pet rent is an additional monthly charge, Security Deposit - is a sum of money you pay to your landlord or property management company when you sign a new lease, usually equal to one to two months' rent.
What are the 6 ways to stick to your budget?
Give it a week, be honest, get the right tools, give yourself incentives, be realistic, repeat regularly