Personal Finance
Which of the following is true?
There is nothing wrong with spending money if a person learns to spend the right way
Reducing how often you dine out is one of the easiest ways to reduce your what?
Total expenses
A S.M.A.R.T. financial goal is specific to an individual.
True
A portion of all earned income is collected by various government entities.
True
Although renters may believe they can escape real estate taxes, the truth is that the landowner pays the property tax and then builds that expense into the cost of the rent.
True
Any wage earner in the 25% federal marginal tax bracket gets to keep 75 cents of every marginal dollar earned.
True
Arriving at a job interview late adds stress to an already stressful situation.
True
By buying quality and extending the productÕs lifetime a product's value is increased.
True
For most people, how they manage their career is one of the biggest personal financial decisions they will ever make.
True
Good personal status symbols are a fully established emergency fund, the elimination of any credit card debt, a paid-off mortgage, and a retirement account that is growing towards established financial goals.
True
Home expenses include rent or mortgage payments, as well as any other expenses incurred for a home.
True
How careers are managed is one of the biggest financial decisions most people make.
True
It is a good idea to get the best possible value while spending money.
True
It is called a career ladder, not a career escalator.
True
It is easier than ever for most people to do their own taxes.
True
It is important for taxpayers to understand the difference between tax credits and tax deductions if they want to minimize their tax liability.
True
Maintaining good physical health is also an investment in good financial health.
True
Most people cannot separate their financial life from their professional life.
True
Net worth is the difference between assets and liabilities or the difference between what is owned and what is owed.
True
Silence is an interview tactic designed to get the interviewee to reveal much more about themselves than they ever intended.
True
Taxes on purchases include sales taxes and excise taxes.
True
The net worth statement is a snapshot of personal finances at a moment in time.
True
There are opportunities to gain valuable leadership experience in almost any position within any company.
True
Understanding the affect taxes have on purchasing decisions is crucial to reaching personal financial goals in as short a time as possible.
True
When applying for jobs it is important for people to a have a good idea of what they want to do, because they can look for places that have large concentrations of the kinds of jobs they want to do.
True
Why do financial plans still fail? It can be summed up in one simple phrase: L.I.F.E. happens.
True
What agency is charged with protecting the infrastructure of the postal system as well as its employees and customers?
U.S. Postal Inspection Service
One of the best ways to become a smarter consumer is to get the best what on every purchase?
Value
Fixed expenses, discretionary income, and what is vital to building a simple budget?
Variable Expenses
What is a written guarantee issued by the manufacturer or service provider with the promise to repair or replace the purchase within a specified time period?
Warranty
Who is the number one advocate for your own financial protection?
You
People work in a __________ world, but live and play in a post-tax world.
pre-tax
A great way to save on purchases is to always buy the economy size of the product.
False
A tax deduction reduces taxes owed by the same amount as the deduction
False
An accountant is usually the least skilled of all tax professionals and usually is the most expensive.
False
Building an emergency fund is not a good first S.M.A.R.T. financial goal for most people.
False
Eating properly, maintaining a healthy weight, exercising regularly, and generally leading a healthy lifestyle, reduces investment risk.
False
For items that are purchased infrequently and expected to last, it is often not worth the extra money to get a better quality product
False
For items that are purchased infrequently and expected to last, it is often not worth the extra money to get a better quality product.
False
It is inconsequential to continually plan for a career.
False
It is more important to get what you want than to get value while spending money.
False
It is not a good idea to plan for a career because the plans never work out as you intend.
False
Just as it is a good idea to receive the best price for large infrequently purchased items, it is a good idea to receive the best price for everyday purchases.
False
Landlords pay property tax, renters do not.
False
Most people easily separate their financial life from their professional life.
False
Net worth sheets with monthly shortages indicate it is time to make adjustments in spending habits.
False
Personal financial goals cannot be short-term, mid-range, or long-term.
False
Property taxes only affect home owners but never automobile owners.
False
Specific financial goals are always in general terms such as, ?I plan to retire a millionaire.?
False
State birth tax, for those states that have this tax, requires that parents to pay a certain percentage of all wealth that is to be transferred as part of an inheritance.
False
The goal of making one million dollars this year or paying off the house in the next six months is a realistic goal for most people.
False
What do you want to do? Where do you want to do it? And why do you want to do it? These are three hardest questions to answer when managing a career.
False
When it comes to non-perishable items, you really can't save money by buying in bulk.
False
The primary mission of this agency is to reduce crashes and injuries involving large trucks and buses.
Federal Motor Carrier Safety Administration
Discretionary income, variable expenses, and what final component is vital to building a simple budget?
Fixed Expenses
When making almost any purchase, there is no need to pay full retail price. Just wait for the product to do what?
Go on sale
Examples of these are paying off a car over the next 18 months or saving enough money to pay for a tropical vacation next summer.
Goals
Good financial __________ should be realistic and make sense for each individual.
Goals
Setting these are the first step to achieving personal financial success.
Goals
The first step to achieving personal financial success is setting personal financial ___________.
Goals
The innocent $6.00 Starbucksª coffee when purchased just twice a week adds up to over $624 a year. Buy one every week day and how much will it cost you in a year?
$1,560.00
You want to buy a new car. You check you budget and know the maximum you can comfortably afford is $250.00 for a monthly payment. You've also researched car loans and found you can be approved for a 5% APR car loan for 4 years. What is the maximum price for a car you are willing to pay if you have no down payment and no car to trade in?
$10,855.74
On average cars depreciate or lose about what percent of their value each year?
20%
It is easier than ever for most people to do their own ________.
All of the answers are correct
Which of the following statement about Federal taxes is (are) true?
All of the statements are true.
By creating one of these forms, you can begin to enjoy your life and your money.
Budget
What can you reduce or completely eliminate especially because of the vast array of online alternative like Netflix and Hulu?
Cable Bill
When deciding if you should pay someone else to do something for you, you should consider the following: can I do this myself, how difficult would it be to learn to do this myself, how many hours would I have to work at my job to pay someone else, and what?
Can a friend or someone else assist me instead of a professional
The ________ focuses on enforcing federal consumer finance laws. They take consumer complaints, write rules regarding consumer finance, promote financial education, and enforce consumer protection laws.
Consumer Financial Protection Bureau (CFPB)
Another great way to add value on purchases, especially in the grocery store, is to clip what?
Coupons
In order to pay less in taxes, you need to either earn less or maximize the use of what?
Credits and Deductions
In order to pay less in taxes, you need to either earn less or maximize the use of credits and deductions. Follow these steps to reduce the amount of taxes you owe: maximize your contributions to your 401(k), contribute funds to a traditional IRA, maximize contributions to a qualified health savings account, deduct moving expense, review all possible credits for which you may apply, deduct tuition or claim an eligible education tax credit, and what final step?
Deduct student loan interest
This lifestyle force uses variables like salaries, interest rates, and unemployment rates that may be rising, falling or remaining steady.
Economics Conditions
This life style force refers to the level of you and your spouseÕs education, and the educational needs of any dependents.
Education Level
What type of contract is with a company to service or replace a covered item that becomes damaged or inoperable during a specified period of time?
Extended Warranties
If you concerned about a possible repair to or replacement of your newly purchased product, what should you then consider at the initial time of purchase?
Extended warranty
When deciding if you should pay someone else to do something for you, you should consider the following: can I do this myself, how difficult would it be to learn to do this myself, can a friend or someone else assist me instead of a professional, and what?
How many hours would I have to work at my job to pay someone else
Grocery stores place candy bars right at the checkout line. Department stores place their magazines, batteries, and other items near the registers. What are these all examples of?
Impulse Buying
Health and medical expenses include any portion of __________ premiums that are paid out of pocket, as well as deductibles, copayments for doctor office visits, and prescription costs.
Insurance
What is the term for listed, or itemized, expenses or contributions you are permitted to deduct from your federal taxable income as calculated on Form 1040, Schedule A?
Itemized Deductions
What lawsuits are typically a result of death or permanent illness or disability that could result in settlements of millions of dollars?
Large Class Action Lawsuit
What is the key to saving?
Learn to live on less
These are factors that influence how a person chooses to live such as marriage and career choice. Some factors may be outside an individuals control such as age and economic conditions.
Lifestyle Forces
Personal finance situations are influenced by variables that lead us each to have our own needs and set our own individualized goals. These variables are referred to as what?
Lifestyle forces
When you go grocery and clothes shopping, what should you do to ensure you leave with only what you intended to purchase and nothing else?
Make a list and check it twice
What is the term for the tax rate at which your last or next dollar earned is taxed?
Marginal Tax Rate
When it comes time to file taxes a person's goal should be to what?
Neither owe money nor receive a large refund
Who should you pay to do things that you are capable of doing for yourself?
Nobody
This lifestyle force considers you may be caring for children, aging parents, adult children, children with disabilities, etc.
Number of dependents
There is absolutely no connection between a personÕs net worth and their worth as a what?
Person
To keep financial plans from failing you should:
Plans one purchases
This term is a way to look at purchasing items by breaking down the cost in easily comparable quantities such as per ounce, per quart, or per unit.
Price per Quantity
Shopping price per ounce, pound, quart, serving, etc. is what type of shopping?
Price per quantity
This type of tax credit means you get the refund, even if it is more than the amount you owe in taxes before subtracting for the credit.
Refundable Tax Credit
To take your goals to the next level and make them most effective you will want to make sure your goals are considered what kind of goals?
S.M.A.R.T
What is the acronym used to help us remember how to establish good goal setting? Without these elements your goals will be difficult to achieve.
S.M.A.R.T
Anyone can save money while shopping by:
Shopping by price per quantity
The more ________ you make your financial goals, the easier it is to track movement towards achieving them.
Specific
These financial goals avoid general terms such as, ÒI plan to retire a millionaire.Ó
Specific
