Money Matters
What is the term for the money you earn from working?
Income
Which of these is a fixed monthly expense?
A. Groceries
B. Rent
C. Gas for your car
D. Dining out
B. Rent
What does a credit card allow you to do?
Borrow money to make purchases, then repay it later.
What is a paycheck stub used for?
To show how much you earned and what was withheld.
What is one document you should never share online?
Social Security card, driver’s license, credit card, etc.
What’s the difference between a need and a want?
A need is essential (food, shelter); a want is non-essential (entertainment, luxury).
True or False: A phone bill is usually a variable expense.
False — most phone plans are fixed.
What is one consequence of missing a credit card payment?
Late fees, interest charges, or lowered credit score.
What is a deductible in an insurance policy?
The amount you pay out-of-pocket before coverage begins.
What’s one thing to ask about a job besides salary?
Benefits (health insurance, time off, 401(k), etc.).
What does “pay yourself first” mean when it comes to saving?
Save money (e.g., into a savings account or retirement) before spending on other things.
What is a grace period on a bill?
The time after a due date before a penalty is applied.
What does APR stand for?
Annual Percentage Rate.
What’s the difference between a W-2 and a 1099 form?
W-2 is for employees; 1099 is for independent contractors.
What does it mean to “live within your means”?
Spend less than or equal to what you earn.
What does the “50/30/20” rule stand for in budgeting?
50% needs, 30% wants, 20% savings/debt repayment.
If your rent is $1,200 and your income is $3,000/month, what percent goes to rent?
40%.
What’s one way to build credit responsibly as a young adult?
Use a credit card and pay in full on time, keep balances low, etc.
Name two common paycheck deductions besides taxes.
Insurance, retirement contributions, union dues, etc.
Name two signs that a text or email might be a scam.
Urgency, misspellings, unknown links, asking for personal info.
If you earn $3,000/month and want to save 20%, how much should go to savings?
$600.
Name three categories you should include in a personal monthly budget.
Examples: Rent, groceries, utilities, savings, transportation.
True or False: Paying only the minimum credit card payment each month avoids interest charges.
False.
If your gross income is $2,500 and your net income is $2,050, how much was deducted?
$450.
What is phishing and how can you protect yourself from it?
A scam to steal personal info; avoid clicking links or giving info to unverified sources.