Career Prep Text
Which of the following answers lists 4 year colleges from generally the least expensive to most expensive?
In-state public university, out-ofstate public university, private university
Which is a positive reason for using a credit card to finance purchases?
Paying it off on time can help build your credit history
Which type of bank account is best if you want some growth on your money?
Savings
A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.
True
Living at home while enrolled in post secondary school or training can save money on....
room and board but it raises costs for transportation.
The W-4 tax form is used to ___________.
tell your employer how much federal income tax to withhold from your paychecks to send to the IRS.
An insurance deductible is...
the amount you owe before insurance will cover the rest of the bill.
Each year, you must file ____________________.
your federal taxes and state taxes if your state requires it
Why is it important to have insurance?
A and B
When making a large purchase, you should avoid everything EXCEPT _____________________.
A price that fits comfortably in your budget.
Which of the following is a reason someone should get health insurance?
A reason someone should get health insurance is that health insurance protects you financially from medical emergencies.
A stock is ________.
A share of ownership in a company.
A mutual fund is _________.
A type of investment that invests in a mix of different types of investments.
Which of the following is NOT a common feature of a financial institution?
Access to Investment Advice
Which of the following statements about savings accounts is FALSE?
All of the Above
Making a good purchasing decision requires __________.
All of the above
What are the benefits of attending a local community college?
All of the above
When setting a budget, you can choose to make room for:
All of the above
Which of the following is a benefit of using a budget?
All of the above
Which of the following is a way to track your spending?
All of the above
Which of the following is true about the Free Application for Federal Student Aid
All of the above
Which of the following should you consider when setting a budget?
All of the above
Which of the following will help you protect yourself from identity theft and fraud?
All of the above
When you are deciding what to buy, you should not...
Assume that buying the cheapest item is the smartest choice.
___________ are good places to look to find your current expenses when building your budget.
Bank and credit statements
How does a consumer know whether a purchase may be a good deal?
Both A and B
Which type of bank account is best for everyday transactions?
Checking
Which type of bank account typically offers the least (if any) interest?
Checking
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.
Choosing a credit card
Which payment option could have interest charged to you?
Credit Card
Which payment option is a form of borrowing money that needs to be paid back later and has additional security like fraud protection?
Credit Card
Which payment option takes money out of your bank immediately?
Debit Card
This helps you prepare for unexpected expenses.
Emergency fund
Why might preparing taxes be different for people living in different states?
Everyone must file federal taxes, but each state has different tax laws.
What type of federal funding is free money, but is based on financial need only?
Federal grants
Your salary is one thing to consider when reviewing a job offer but benefits are also important. Which of the following would NOT be a part of your benefits package?
Free technology equipment
What is the difference between gross and net pay?
Gross pay is before taxes are subtracted but net pay is after taxes are taken out.
What does the W-2 form tell you?
How much you've earned and how much taxes you've paid in the last year.
Which of the following statements is TRUE?
If there is a mistake on your bank account, you should contact your financial institution immediately.
Earning a degree can be expensive but which example shows why it might be worth it?
Individuals with a bachelor's degree typically earn a higher annual salary than those without one.
What does liability insurance not cover in the event of an accident?
Injury to yourself
What should you do before you use an ATM?
Inspect the ATM and its surroundings to make sure it is safe to use.
Which of the following statements about investing is FALSE?
Investing is a guaranteed way to grow your money.
Which of the following statements about investing is TRUE?
Investing is riskier than putting money in a savings account
Why is figuring out the unit price of something useful when shopping?
It helps you determine the best deal
A 529 plan can help you save more money than a traditional savings account because...
It is a tax free.
How can you avoid spending more than what is in your bank account?
Keep your own records to compare with your financial institution's records.
To maintain a good credit score you must ______.
Manage your debt wisely.
What should be considered when setting a budget?
Needs, wants, and savings
Which example shows an advantages of owning a car over leasing one?
No restrictions on the number of miles to drive and the ability to customize or make changes to the car.
Recommended methods to protect yourself from identity theft and fraud include_______.
Placing a credit freeze with the credit bureaus.
What can help you meet your budget while shopping for important items?
Prioritizing features to meet your needs.
Which of the following is NOT a useful strategy when making an informed purchase?
Purchase a product based on a social media influencer.
In addition to needs, what should you plan for first when creating a budget?
Recurring expenses
How can you ensure you don't go over your budget?
Round up your expense estimates to add a buffer
What do taxes pay for?
Schools, government departments, roads, and emergency services
What is one of the best ways to get reliable information about a product?
Search online reviews
What can affect whether a public or private university is affordable?
The amount of financial aid that they offer.
What is net pay?
The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
Making the choice to spend money on post-secondary education pays off in the long run because:
The salary you will earn with a degree will pay back the cost of college over your career.
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.
Why is it useful to have your bank account and routing numbers when using tax preparation software?
To indicate where tax refunds should be sent.
The price of a single item within a group of items is known as the ______________ of the item.
Unit price
When you start a new job, 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
When are loans a good option to use?
When paying for higher education
What is a benefit of having a good credit score?
When you need a loan, you'll have more loan offers to pick from.
What is a consequence of not having health insurance?
You must pay all costs for health care and medical emergencies.
What will happen to your credit score if you do not manage your debt wisely?
Your credit score will go down
If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
Your financial institution
Textbooks, transportation and room and board are all...
additional costs for attending a college or university.
Healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of _________ available from your employer.
benefits
When filing an insurance claim, the policyholder must pay a ________________, which is the amount you owe before insurance will cover the rest of the bill.
deductible
If you get into a car accident, your _______________ may increase because you will be considered riskier for insurance companies to cover.
insurance premium
Collision insurance is...
insurance that will pay to get your car fixed in the event of an accident.
Everyone interested in post-secondary education should complete the Free Application for Federal Student Aid (FAFSA) because...
it allows you to be eligible for federal student aid and other scholarships and grants.
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.
Investing is best for __________.
long-term financial goals, like paying for retirement.
Preparing to pay for higher education can start in 9th grade or earlier by...
opening a 529 plan
Tax preparation software can help prepare and file your taxes by _________.
posing questions to collect necessary information
Deductions and credits can _______ what you owe in taxes each year.
reduce
