Everfi 1-7
Why is it important to have insurance?
A and B
Which of the following is NOT a common feature of a financial institution?
Access to investment advice
Which of the following is NOT a common feature of a financial institution?
Access to investment products
What should you NOT use a loan to purchase?
Airline tickets to your dream vacation
Which type of bank account typically offers the least (if any) interest?
Checking account
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.
When are loans a good option to use?
When paying for higher education
What will happen to your credit score if you do not manage your debt wisely?
Your credit score will go down
Net pay is NOT ________.
Your gross pay plus any bonuses.
Buying a home security system is an example of protecting your home against________.
risk
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.
The price of a single item within a group of items is known as the ______________ of the item.
unit price
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.
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.
Which of the following statements is TRUE?
None of the above
What is net pay?
The amount of money you're paid after all taxes and deductions are taken out of your paycheck.
What is the purpose of the W-4 form?
To inform your employer of how much federal income tax to withhold from your paychecks
There is no relationship between the level of education received and lifetime earnings.
False
Which of the following should NOT be considered when setting a current budget?
Future income
For most careers, which degree will most likely result in the highest lifetime earnings?
Bachelor's Degree
___________ are good places to look to find your current expenses when building your budget.
Bank and credit statements
Which of the following financial institutions typically have the highest fees?
Check cashing and payday loan companies
What should you do before you approach an ATM?
Check for any suspicious people lurking nearby.
Which type of bank account is best for everyday transactions?
Checking Account
Savings accounts typically offer more interest than what type of account?
Checking account
Which payment option can offer additional security like fraud protection?
Credit Card
Which payment option could have interest charged to you?
Credit Card
Which of the following answers lists 4 year colleges from generally the least expensive to most expensive?
In-state public university, out-of-state public university, private university
Which of the following answers lists 4 year colleges from generally the least expensive to most expensive? answer choices In-state public university, private university, out-of-state public university
In-state public university, out-of-state public university, private university
What should you do before you withdraw money from the ATM?
Inspect the ATM to make sure it wasn't tampered with.
What do people purchase as a form of risk management to protect themselves from losing a lot of money in the event something happens to them or their property?
Insurance
How can insurance protect you from financial loss?
Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.
Why is figuring out the unit price of something useful when shopping?
It helps you determine the best deal.
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 of the following is NOT an advantage of owning a car?
Smaller down and monthly payments than leasing a car.
All of the following are true about the Free Application for Federal Student Aid (FAFSA) EXCEPT:
The form is only available online.
Dimitri's counselor told him that post secondary education can be expensive but can pay off in the long run, what does that mean?
The salary you will earn with a degree will pay back the cost of college over your career.
Why should you purchase insurance?
To prevent financial burden in the case of an accident, theft, or another event
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 NOT a benefit of having a good credit score?
You'll get accepted to better education institutions.
Where should you look to find your current expenses when building your budget?
bank and credit statements
Bank statements, credit statements, and records of cash expenses help you to estimate your ________.
expenses
An insurance premium is...
the amount of money you pay for an insurance policy. 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.
When you start a new job, you fill out a W-4 form to _________.
to determine how much federal income tax your employer should withhold from your paychecks
The envelope method, notebook and pencil, and online software are all methods of ______.
tracking your spending
When setting a budget, you can choose to make room for:
All of the above
Why is it important to reconcile your bank statements?
All of the above
Why is using a budget beneficial?
All of the above
Which choice or choices best describes the purpose of an emergency fund?
All of the above are good reasons to have an emergency fund.
The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.
it requires collateral.
Which of the following statements is true about taxes?
All of the above
How is an advertisement different from a comment from a regular consumer?
The advertisement is likely one-sided.
When you are deciding what to buy, you should...
compare the unit price of items similar to the one you want.
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 is NOT considered an additional cost beyond tuition for higher education?
Academic counseling
Which is a tax-free savings account that can only used for educational expenses?
A 529 plan
What is a risk management strategy you could use to protect your home?
A and B
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 show up on your paycheck?
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 (FAFSA)?
All of the above
Which of the following should you consider when setting a budget?
All of the above
In your budgeting process, when should you look at recurring expenses?
Before reviewing your wants
What are possible red flags or signs of a scam when buying a car?
Both A and C
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.
Which is not an example of a risk management strategy?
Buying a new car
Which payment option is not accepted online?
Cash
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.
Choosing a credit card
How would you reconcile your bank account to avoid spending more than you have?
Compare your own records of your spending with your financial institution's records.
Which method of payment actually is a form of borrowing money that needs to be paid back later?
Credit Card
Which payment option takes money out of your bank immediately?
Debit Card
This helps you prepare for unexpected expenses.
Emergency fund
Andrew doesn't want to spend a lot of money on student loans, and does not qualify for grants. What is his best option for affording a Bachelor's Degree?
He can attend the local community college whose courses transfer to the public four-year college.
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 is NOT a good way to track your spending?
In your head
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 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 is NOT a common feature of a financial institution?
Investment trading
Recommended methods to protect yourself from identity theft and fraud include_______.
Placing a credit freeze with the credit bureaus.
In addition to needs, what should you plan for first when creating a budget?
Recurring expenses
Which of these additional costs will most likely be the most expensive?
Room and board
Which of the following is NOT a possible tax or deduction that could show up on your paycheck?
Sales tax
Which of the following statements about savings accounts is FALSE?
Savings accounts allow an unlimited amount of withdrawals each month.
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
Which of the following is NOT true about the Free Application for Federal Student Aid (FAFSA)?
The earliest you can submit your FAFSA is January 1st of each year.
How does the government pay for roads, schools, and emergency services?
They are funded through taxes.
Which of the following is NOT true about emergency funds?
They are used for anything listed on the budget.
Which of the following statements about check cashing companies is TRUE?
They charge high fees.
Which of the following statements about check cashing companies is FALSE?
They charge low fees.
Earning a degree can be expensive but which example shows why it might be worth it?
You are more likely to earn more money over your lifetime than if you did not have a degree.
Textbooks, transportation and room and board are all...
additional costs for attending a college or university.
When you are deciding what to buy, you should not...
assume that buying the cheapest item is the smartest choice.
The W-2 form is a form that tells you _______.
how much taxes you've paid in the last year based on how much you've earned
If you get into a car accident, your _______________ may increase because you will be considered riskier for insurance companies to cover.
insurance premium
If you get into a car accident, your _______________ may increase because you will be considered riskier for insurance companies to cover. answer choices
insurance premium
To maintain a good credit score you must ______.
manage your debt wisely.
Wearing a seat belt, not texting when driving, and driving carefully are all examples of...
risk management strategies.
The fact that you are more likely to earn more money over your lifetime with a post secondary degree means...
the cost of a post secondary degree is worth it.
A deductible is paid by...
the policyholder.
An insurance premium is paid by...
the policyholder.
What should be considered when setting a budget?
Needs, wants, and savings
The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________.
Net pay
The ___________ is a flexible market that allows you to work short-term, independent jobs.
gig economy
Something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...
insurance.
A 529 plan can help you save more money than a traditional savings account because...
it is a tax free.
Preparing to pay for higher education can start in 9th grade or earlier by...
opening a 529 plan.
An insurance premium is paid by... answer choices the insurance company. the claims adjuster. the government.
the policyholder.
An example of a risk management strategy is...
A and C
What can insurance protect you from?
A and C
Which of the following is NOT a benefit of using a budget?
A budget can help you purchase anything you want.
Not managing your debt wisely can result in ________.
A decrease in your credit score
Which of the following is NOT a feature that makes a secured loan less costly than an unsecured loan?
A high interest rate
Which of the following is NOT a recommended method to protect you from identity theft?
Expensive specialty locking or monitoring service.
Having a great credit score will make it easier for you to get into a better educational institution.
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.
Which of these items is NOT important to consider when selecting a credit card?
The look of the credit card
A pack of 24 pencils is more expensive than 12 pencils, but why could buying the 24 pack be the better deal?
The price of each pencil, or the unit price, is actually cheaper in the 24 pack.
It does not make sense to avoid post secondary education because of its cost since in the long run:
The salary you will earn with a degree will pay back the cost of college over your career
Using a loan could help with the purchase of which of the following?
A house
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.
How is having a security system for your home a risk management strategy?
The security system will alert authorities and deter criminals, protecting your valuables and property.
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
Which of the following is NOT a possible tax or deduction that could come out of your paycheck?
Overtime pay
. 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
Leasing a car may be a better option than buying a car if...
you don't plan on having it for long and don't want to worry about regular maintenance.
What are the benefits of attending a local community college?
All of the above.
Which of the following will help you protect yourself from identity theft and fraud?
All of the above.
Secured loans are less costly than unsecured loans because _________.
All of these are true.
What is a benefit of having a good credit score?
When you need a loan, you'll have more loan offers to pick from.
Paying only the minimum balance on your credit card can lead to...
paying more interest.