Career Prep Test

For most careers, which degree will most likely result in the highest lifetime earnings?

Bachelor's Degree

How much of you're being paid is the only thing you need to consider when considering a job offer.

False

How is a post from a social media influencer different than a comment from a regular consumer?

The influencer is paid to post the product.

Your employer sends you a _____ form that tells you how much you've made and how much you've paid in taxes in the last year.

W-2

Which is a tax-free savings account that can only be used for educational expenses?

a 529 plan

Not managing your debt wisely can result in ____

a decrease in your credit score.

Using a loan could help with the purchase of which of the following?

a house

An emergency fund should not be used for

a last-minute school trip.

Cutting down on costs by earning an Associate's degree first and then transferring to a four year college or university can be done by going to what type of higher education institution?

a local community college.

Which of the following is a benefit of using a budget?

all of the above

Which of the following is a possible tax or deduction that they may shop up on your paycheck

all of the above

Which of the following is true about the Free Application for FASFA?

all of the above

____ are good places to look to find your current expenses when building your budget.

bank and credit statements

Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of ____ available from your employer.

benefits

Which item is important to consider when selecting a credit card?

both APR and fees.

Which housing option gives you more freedom and more responsibility?

buying a house.

Something people to buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as

insurance

If you get into a car accident, your ___ may increase because you will be considered riskier for insurance companies to cover.

insurance premium

Insurance that will pay for injury to another driver and/or damage to their car if you are in an accident is called

liability insurance

To maintain a good credit score you must ___

manage your debt wisely.

The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called

net pay

Which savings account will earn you the most money?

one that compounds interest daily.

Which savings account will earn you the least money?

one that earns simple interest monthly.

Which is the positive reason for using a credit card to finance purchases?

paying it off on time can help build your credit history.

Paying only the minimum balance on your credit card can lead to...

paying more interest

In addition to needs, what should you plan for first when creating a budget?

recurring expenses

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

risk management strategies

What is one of the best ways to get reliable information about a product?

search online reviews

An insurance premium is

the amount of money you pay for an insurance policy

An insurance deductible is

the amount you owe before insurance will cover the rest of the bill.

A deductible is paid by..

the policyholder

an insurance premium is paid by

the policyholder

How does the government pay for roads, schools, and emergency services?

they are funded through taxes.

What is the best reason for why someone would want to lease a house instead of buy one?

they are planning on living there for a short period of time.

What is the purpose of the W-4 form?

to inform your employer of how much federal income tax to withhold from your paychecks.

Why should you purchase insurance?

to prevent financial burden in the case of an accident, theft, or another event

Which is not considered an additional cost beyond tuition for higher education?

transportation

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

true

Generally, the more education you receive, the higher your lifetime earnings will be.

true

What is a consequence of not having health insurance?

you must pay all costs for health care and medical emergencies.

Choose the statement that is true about health insurance.

you should always have health insurance, regardless of your circumstances.

If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?

your financial institution.

Which of the following answers lists 4 year colleges from generally the least expensive to most expensive?

in state public, out of state public, private

Which of the following is not a good way to track your spending?

in your head

What does liability insurance not cover?

injury to yourself

What is risk management strategy you could use to protect your home?

A and B

Which type of bank account is best for everyday transactions?

checking account

When you are deciding what to buy, you should

compare the unit price of items similar to the one you want.

Which payment option could have interest charged to you?

credit card

Which payment option takes money out of your bank immediately?

debit card

This helps you prepare for unexpected expenses.

emergency funds

Which type of federal funding is free money, but is based on financial need only?

federal grants

The price of a single item within a group of items is known as the ____ of the item.

group price