banking
When signing up for a new checking account you answer "No" and opt out of overdraft coverage. On this day, you have $10 in your account and go out and use your debit card to buy lunch for $12, a movie ticket for $12 and dinner for $15. What is likely to be the outcome resulting from these transactions?
your card will decline because you declined the overdraft coverage.
Which definition best describes the FAFSA?
the application you submit to see if you are eligible for federal student aid.
Maria is new to budgeting. Maria’s friend advises them that they should “pay themselves first”. What does that mean?
It means she should put money off to the side for savings before spending a paycheck.
The difference between a student loan and a scholarship or grant?
Student loans are required to be paid back.
Scholarships and grants are "gifted" and do not need to be paid back.
What is an insurance premium?
the amount you pay monthly to keep being insured.
Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?
If a taxpayer fills out their W-4 in a way that does not withhold enough money to cover their tax obligation, what is the most likely outcome after they file their taxes?
they will owe payments to the IRS
50-30-20 rule of budgeting?
50% needs
30% wants
20% savings
What do you need to subtract from a college’s cost of attendance in order to find the net price?
your grants and scholarships
Why should you understand your risk tolerance before you start investing?
so you know how much risk you are comfortable with
How can your credit score impact your financial well-being?
it can prevent you from being approved for loans and and the interest rates on those loans.
Why is it important to be careful and truthful when completing your 1040 form?
because the 1040 shows if you are eligible for a refund from the government or if you owe additional taxes.
for savings
to buy gas
to buy small purchases
ll of the following are benefits of using a checking account EXCEPT…
for savings
An example of coverage when you have liability coverage with your auto insurance policy
ex) Your insurance will cover the payment for your neighbor's fence repair if you crash into it backing out of the driveway.
Which best describes the Debt Snowball method for paying off debt?
paying off debts starting with the lowest balance.
credit history
credit limits
checking balance history
All of the following can be found in your credit report EXCEPT…
your checking balance history.
What tax form requires you to provide identification and proves you are eligible to work in the U.S.?
I-9
Which of the following is an effective strategy for personal saving?
Save a certain percentage of each paycheck and deposit it directly into a savings account
What is a benefit of going to college and gaining a degree?
an expanded selection of work fields and social network
What are the two most important factors in calculating your credit score?
payment history and total debt.
Suppose you are trying to switch banks or open a brand new credit card. Which strategy will likely lead to the WORST long-term outcome?
Look for sign-up bonuses or introductory offers that will make the product a good deal.
what tax form do you need to fill out if you have made over a certain amount unemployed income.
a 1099
401(k)
1099
savings account
Which of the following paycheck withholdings puts money into a retirement investment fund that you will manage?
401(k) contribution
The monthly premium for Kevin’s renters insurance is $15, and his deductible is $500. During the month of April, someone breaks into his apartment and steals or destroys $2200 worth of his possessions. How much will Kevin pay and how much will the insurance pay to replace his items?
Kevin would pay $500 and the insurance company would pay $1700.
Which of the statements below BEST describes the relationship between risk and return when considering an investment?
higher return for a higher risk.