Budgeting
Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?
Dining out at local restaurants
Loan payment on a new car
Expenses for new clothes
Postponing a purchase for a big-screen TV
Loan payment on a new car
Which amount is found when you subtract your grants and scholarships from a college’s cost of attendance?
Sticker price
Net price
Student Aid Index
Room & board
Net price
All of the following are reasons to invest, EXCEPT…
A. To minimize the impact on inflation, which causes you to lose purchasing power
B. To earn a consistent rate of return with lower risk than typical savings accounts
C. To build wealth by reinvesting your returns and allowing them to compound
D. To earn higher average rates of return than you would in a typical savings account
To earn a consistent rate of return with lower risk than typical savings accounts
Each of the following is a benefit of using online and mobile banking EXCEPT...
You can check your balances before you make a purchase
You can transfer money electronically between accounts
Online banking is the only way you can make online purchases
You can keep an ongoing record of your deposits and withdrawals
Online banking is the only way you can make online purchases
Which of the following can be found in your credit report?
Your checking and savings account balances
How long you’ve been a member of a bank or credit union
Your credit payment history
A list of items you’ve purchased using credit
Your credit payment history
Anna receives her first paycheck and realizes that her take-home pay is substantially less than the rate she was offered when hired. Which of the following would help explain why this happened?
Taxes, social security, and Medicare are being deducted from her pay
Most employers charge a "payroll fee," which the company collects to offset the cost of preparing each employee's paycheck every pay period
Her company is downsizing and has decided to pay her less without notice
Anna's pay is smaller than she anticipated because businesses typically pay high school students less than minimum wage
Taxes, social security, and Medicare are being deducted from her pay
In order to qualify for financial aid, prospective college students must submit their _____________.
FAFSA
Which of the following statements BEST describes investing?
A. Putting $100 per month into an FDIC-insured bank account for short-term goals
B. Buying and selling stocks within the same day to take advantage of short-term price variation
C. Reducing the purchasing power of your money over time
D. Buying assets, like stocks, with the intention to hold them and grow your wealth over the long term.
Buying assets, like stocks, with the intention to hold them and grow your wealth over the long term.
Morgan is speaking with her sister about the different ways she can send money to her friends. The following are examples of peer to peer payments apps that Morgan can mention EXCEPT…
Venmo
Brigit
Zelle
Cash App
Brigit
Which of the following will result in your paying the LARGEST amount of interest to the credit card company?
Paying 20% of your credit card balance every month
Making the minimum payment every month
Paying off your balance every month
Saying "credit" every time the cashier asks "Debit or credit?"
Paying off your balance every month
Which of these boxes of cereal has the LOWEST unit price?
Cereal A, which costs $3.20 for a 16 oz. box
Cereal B, which costs $5.00 for a 32 oz. box
Cereal C, which costs $2.50 for a 10 oz. box
Cereal D, which costs $4.50 for an 8 oz box
Cereal B, which costs $5.00 for a 32 oz. box
When it comes to paying for college, if you have exhausted all "awards" the second option you should consider is…
A grant or scholarship, because you don't repay them
A Federal student loan, because they offer low, fixed interest rates
A private loan, because they are tailored specifically for you and your family
Work-study, because it comes with low, fixed interest rates
A Federal student loan, because they offer low, fixed interest rates
Explain the difference between investing and savings?
Must provide one key difference on what each investment type.
Saving is for short-term goals and emergencies (money you need within 1–5 years), offering low risk and easy access. Investing is for long-term wealth (retirement or goals 10+ years away), carrying higher risk but providing the potential for greater returns to outpace inflation.
The Federal Deposit Insurance Corporation (FDIC) insures bank accounts up to a particular amount. This means that if the bank fails, the money is guaranteed by the government.
Completely false
Partially false, the money isn’t guaranteed
Partially true, it insures any amount
Completely true
Partially false, the money isn’t guaranteed.
Bonus: How much does the FDIC insure?
2....
What is the main difference between a debit card and a credit card?
A. Debit cards build credit
B. Credit cards use money from checking accounts
C. Credit cards borrow money that must be repaid
D. Debit cards charge interest
Credit cards borrow money that must be repaid
You earn a salary of $56,734 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long (in months) will it take for you to achieve your goal?
1.41 years (17 months)
Carmen has just graduated from college and receives a bunch of paperwork from her new job's Human Resources department. Which of the following should be her first step in making sure she's paying the correct amount of taxes?
Complete a 1040 form
Buy a copy of TurboTax and file her taxes
Complete an I-9 form
Complete a W-4 form
Purpose: The IRS Form W-4 is specifically designed for employees to indicate their tax situation to their employer.
Which of the following statements BEST describes the stock market?
A. Businesses listing their entire company for sale
B. Businesses selling partial ownership of their companies to raise capital
C. Investors buying stock in hopes of being hired by companies
D. People making donations to companies that need funding
Businesses selling partial ownership of their companies to raise capital
Dariana is trying to convince her brother Anthony instead of placing his money in a shoebox he should consider placing his money in a bank account. All of the following are benefits of having a checking account that Darianna could mention, EXCEPT…
He can pay bills, check his balance, and transfer money using mobile banking
He can track his money using alerts, statements, and online banking
He can earn a high interest rate on the money in his account
He can have his paycheck deposited automatically into his account
He can earn a high interest rate on the money in his account
Define the three following terms
APR
Down Payment
Principal
Give two examples of each of the following types of expenses.
Fixed Expense
Variable Expense
Fixed Expenses
These are predictable, recurring costs that remain the same amount each month.
Explain the difference between a subsidized loan and an unsubsidized loan?
Hint: It has to do with interest rates!
The main difference between subsidized and unsubsidized federal student loans is who pays the interest. For subsidized loans, the government pays the interest while you are in school and during deferment. For unsubsidized loans you are responsible for the interest as soon as the funds are disbursed
What is a 401K? How are you eligible for one?
A 401(k) is an employer-sponsored retirement savings plan. It allows you to invest a portion of your paycheck before or after taxes, depending on the plan. The money grows over time through investments like mutual funds, and many employers "match" a portion of your contributions, providing essentially free money.
Lee is reviewing his bank statement. Lee can expect to see the following information EXCEPT?
His credit score
The statement period
Banking fees
Deposits and withdrawals
His credit score
Which loan type usually has the highest interest rate?
A. Mortgage
B. Auto loan
C. Student loan
D. Payday loan
Payday loans
Bonus: What percent is the interest rate?
4..