MC #1
Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?
a. Dining out at local restaurants
b. loan payment of a new car
c. Expenses for new clothes.
d. Postponing a purchase for a big screen TV
b. loan payment of a new car
An advantage of having a room is being able to share the rent?
True
Which of these boxes of cereal has the LOWEST unit price?
a. Cereal A, which costs $3.20 for a 16 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.
Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?
a. Average rent for an apartment
b. Food and grocery store options in the area
c. Employment opportunities
d. Average cost of Uber, Lyft, or taxi fare
d. Average cost of Uber, Lyft, or taxi fare
What should you do if you have a budget surplus?
Which of the following is a sign that you have a budget deficit?
a. Your savings account balance grows every month.
b. You overdraw your checking account on a consistent basis (with a $34 cost per overdraft).
c. Your checking account balance grows every month.
d. You pay more than the minimum monthly loan payment towards your student loans.
b. You overdraw your checking account on a consistent basis (with a $34 cost per overdraft).
In the 50-20-30 rule the 20 represents the FUN or Entertainment
False 20% is savings
You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You then 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
John wants to buy a car and is trying to decide whether he wants to accept a pre-qualified auto loan from his credit union or if he wants to directly finance the car from the dealership. What should he do?
a. Finance the car directly with the dealership since they always have better interest rates.
b. Compare the two offers and choose the one through which he’d pay the least amount of money overall.
c. Finance the car with the credit union - since they’re a local organization, they always have the customers’ best interests at heart.
d. Compare the two offers and choose the one with the longest term so that he has more time to pay it off
b. Compare the two offers and choose the one through which he’d pay the least amount of money overall.
What things must you consider while moving in with a roommate?
Rent, Rooms, Entertainment, Transportation, Parking
Greg is trying to decide whether he needs a car or not when he moves to the city. Which of the following would convince Greg to get a car rather than use public transportation?
a. There are several public transportation routes between Greg's apartment and work.
b. The cost of public transportation is less than Greg’s monthly car payment.
c. Greg’s company covers half the cost of his monthly public transportation pass.
d. Using public transportation, Greg’s commute to work one-way is two hours.
d. Using public transportation, Greg’s commute to work one-way is two hours.
Gross Income is the total earnings after deductions are taken out
false
Which of the following is a BAD budgeting strategy to use if you want to save money at the grocery store?
a. Prepare a grocery list before you go to the store, and avoid buying items that aren’t on the list.
b. Build a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat.
c. When comparing similar products, focus on the price only.
d. When comparing similar products, be sure to compare based on unit price
c. When comparing similar products, focus on the price only.
You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Mark which of YOUR expenses would likely decrease by having roommates.
a. Groceries and eating out
b. Rent
c. Cell phone bill
d. Bedroom furniture
b. Rent
Explain what the 50/30/20 rule is
50% Needs
30% Wants
20% Savings/Debt Repayment
Isaiah works for the summer at a technology company and has a salary for the summer of $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.
The money you have from working before you subtract your income taxes
Gross Income
You are interested in renting an apartment after graduating college. You meet with the landlord, complete the application and after checking your credit background and references, the landlord approves your application. In most cases, you will need to provide the landlord with ___________________ at the time you sign the lease in order to get the apartment.
a. First month's rent
b. First and last month's rent
c. $1,000 security deposit to cover any damages to the apartment
d. First and last month's rent + a security deposit to cover any damages to the apartment
d. First and last month's rent + a security deposit to cover any damages to the apartment
Before submitting an application to rent an apartment, you would like to go and inspect the property. Which of the following reasons is the LEAST important reason for why you would go and inspect the apartment?
a. You want to check on the condition of the property and get a feel for the surrounding neighborhood.
b. You want to document any damage that you find in the apartment so it is repaired before you move in.
c. You want to meet with the landlord or property manager to be sure that all of your questions are answered.
d. You want to show the apartment to your family and friends
d. You want to show the apartment to your family and friends.
A person has assets worth $145,000 but their Net Worth is only $80,000. Why is this?
Liabilities of $65,000
You are putting together your first post-graduation budget. Your take-home pay will be $2,500 per month. You estimate your monthly costs to be rent of $900, car related expenses to be $550, entertainment of $200, food expense of $250, cable bill of $75, mobile phone of $100, student loan payment of $400 and other expense of $150. How would you describe your budget after analyzing all of your income and expenses?
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.
A deficit is when your expenses exceed your income.
true
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.
Janine is considering what auto costs she is going to have after buying a new Honda Civic. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership?
a. Yes, these are the three costs she should expect to pay once she is a car owner.
b. No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.
c. No, she needs to factor in other costs such as maintenance, emergency repairs, etc.
d. No, she does not need to include the cost of gas as it is covered under her auto insurance policy.
c. No, she needs to factor in other costs such as maintenance, emergency repairs, etc.
Explain the difference between liabilities and expenses and provide an example of each
Expenses are the costs a person has, while liabilities are the obligations and debts that they owe.