Career & Income
What is the purpose of financial planning?
To set goals and create steps to reach them
What is a budget?
A plan for managing income and expenses
Credit unions differ from banks because they:
Are owned by members
The W-4 form tells your employer:
How much tax to withhold
A credit score is:
A number showing creditworthiness
Grants and scholarships are:
Free money that does not have to be repaid
Which is a cost associated with buying a car?
Loan interest, Oil changes, and Insurance
A mortgage is:
A loan used to buy a home
Insurance works by:
Pooling risk among many people
What is a “wage differential”?
The difference in wages influenced by skill, education, or experience
According to the 50/30/20 rule, the 20% category is for:
Savings and debt repayment
A checking account is best used for:
Everyday spending
A W-2 is:
A yearly summary of your earnings and taxes
Which factor most affects a credit score?
Payment history
A common mistake students make when paying for college is:
Borrowing more than needed
Which type of auto insurance is required in most states?
Liability
Renting a home usually means:
Lower upfront costs
Which insurance is needed by almost everyone?
Auto, health, home/renters, and life
Which factor most increases lifetime income?
Higher levels of education/training
If you earn $1,000/month, how much should go toward “needs” using the 50/30/20 rule?
$500
What does “overdraft” mean?
You spent more money than you had in the account
Which tax is used to support retired and disabled individuals?
Social Security
A good credit score allows you to:
Get loans more easily and at better rates
Student loan interest means:
You pay back more than you borrowed
What is “depreciation” when buying a car?
The decrease in a car’s value over time
What does a lease agreement do?
Explains the rules, rent amount, and responsibilities of the landlord and tenant
Saving is:
Putting money aside for short-term goals or emergencies
Post-secondary degrees generally lead to:
Higher earning potential
Gen Z data shows most teen spending is on:
Food & entertainment
Why is it important to endorse a check?
To prove it's yours and deposit it
Gross pay is:
Income before deductions
Which is a common credit score mistake?
Maxing out credit cards
What is the FAFSA used for?
To determine eligibility for federal financial aid such as grants, loans, and work-study
What does it mean to be “pre-approved” for an auto loan?
A lender has agreed to loan you up to a certain amount before you shop
What is a “security deposit”?
Money paid upfront to cover possible damages or unpaid rent
A strong way to prevent identity theft is to:
Monitor accounts and use secure passwords
Which of the following best explains the term “career pathway”?
A series of jobs and training steps that help you grow in a specific field
A guilty pleasure purchase is:
A want that you enjoy but don’t need
Cash-app services (Venmo/PayPal/Cash App) require users to:
Be cautious of scams and verify users
Payroll deductions include:
Federal taxes, Social Security, retirement contributions
Credit card interest is:
A fee charged for borrowing money
Which helps reduce the total cost of college the MOST?
Taking general education classes at a community college before transferring
Why is it important to check a used car’s vehicle history report (like Carfax)?
To find out if the car has been in accidents or had major repairs
What is one advantage of buying a home instead of renting?
You can build equity as the home increases in value
Which factor should consumers compare to determine the best value when shopping?
Price, quality, and unit price