everfi module 1-6 (business finance)

what could be a good option available to you if you are behind on loan payments?

a financial institution may offer for you to pay a little now and pay the rest after your next pay day

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

a house

a stock is...

a share of ownership in a company

which of the following statements about stocks is TRUE?

a stock is a share of ownership in a company

what is NOT considered an additional cost beyond tuition for higher education?

academic counseling

which of the following is NOT a common feature of a financial institution?

access to investment products, investment trading, access to investment advice

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

both APR and fees

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

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

what is NOT a recommended method to protect you form identity theft?

expensive specialty locking or monitoring service

which of the following statements is TRUE?

if there is a mistake on your bank account, you should contact your financial institution immediately

what should you do before you withdraw money from the ATM?

inspect the ATM to make sure it wasn't tampered with

which of the following statements about investing is FALSE?

investing is a guaranteed way to grow your money

investing is best for...

long term financial goals like paying for retirement

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

paying more interest

which of the following will help you protect yourself from identity theft and fraud?

regularly monitor your credit report, contact lenders and credit bureaus to address incorrect information, and freeze your credit

what can affect whether a public or private university is affordable

the amount of financial aid that the university offers

what is net pay?

the amount of money you're paid after all taxes and deductions are taken out of your paycheck

which of the following is TRUE regarding unexpected expenses?

they should be planned for

the envelope method, notebook and pencil, and online software are all methods of ___

tracking your spending

what is true about the FASFA?

you can submit it at the earliest of October 1 each year, the form is available online or paper, and sates may have different deadlines for applying state aid

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

a mutual fund is...

a type of investment that invests in a mix of different types of investments

textbooks, transportation and room and board are all...

additional costs for attending a college or university

what is the best option for affording a Bachelorś degree?

attend a local community college whose courses transfer to the public four-year college

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

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

benefits

savings accounts typically offer more interest than what type of account?

checking account

which type of bank account typically offers the least (if any) interest?

checking account

when looking for pre-approval on a car loan you should...

compare pre-approval offers and select the one that is best for you

t/f: how much you're being paid is the only thing you need to consider when considering a job offer

false

t/f: there is no relationship between the level of education received and lifetime earnings

false

t/f: when considering a job offer, you should only consider how much you're being paid before you accept the offer

false

t/f: your financial institution can't help you if there is a mistake on your bank account statement

false

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

federal grants

which of the following is a possible tax or deduction that they may show up on your paycheck?

federal income tax, contributions to retirement savings, and FICA

which of the following is NOT considered part of your benefits package available from your employer?

free technology equipment

which of the following should NOT be considered when setting current budget?

future income

the ___ is a flexible market that allows you to work short-term, independent jobs

gig economy

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

helps to keep track of the money you receive, prioritize your spending, and reach short and long term financial goals

list the 4 year colleges from least to most expensive...

in-state public university, out-of-state public univerisity, private university

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 TRUE?

investing is riskier than putting money in a savings accounts

what is NOT a reason to compelete the FASFA?

it allows you to be eligible for early admission

everyone interested in post secondary education should complete the FASFA because...

it allows you to be eligible for federal student aid and other scholarships and grants

which of the following is NOT a benefit of using a budget?

it can help you purchase anything you want

a 529 plan can help you ave 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

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

preparing to pay for higher education can start in 9th grade or earlier by...

opening a 529 plan

which of the following is NOT a possible tax or deduction that could come out of your paycheck?

overtime pay

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

paying it off on time can help build your credit history

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

how can you ensure you don't go over your budget?

round up our expense estimates to add a buffer

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 account is FALSE?

savings accounts allow an unlimited amount of withdrawals each month

which of the following statements about savings accounts is FALSE?

savings accounts don't usually require a minimum balance, savings accounts don't usually pay interest on the money you deposit

what is NOT true about the Free Application for Federal Student Aid (FASFA)?

the earliest you can submit your FASFA is January 1st of each year

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

they are funded through taxes

what 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

which of the following statements is true about taxes?

they pay for schools and government departments, for roads and emergency services, and are often used at the federal, state, and local levels

secured loans are less costly than unsecured loans because ___

they usually have a lower interest rate, require collateral, and they are less risky for the financial institution

why is it important to reconcile your bank statements?

to avoid spending more than what is in your account, to detect any errors in your account, and to determine if you were charged any fees

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

what is the purpose of the W-4 form?

to inform your employer of how much federal income tax to withhold from your paychecks to send to the IRS

t/f: a savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily

true

t/f: generally, the more education you receive, the higher your lifetime earnings will be

true

t/f: when considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer

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

what option will NOT be available if you are behind on loan payments?

you can ask to get out of your loan

what do you need in order to fill our your 1040?

your W-2, your routing and bank account number, and a record of any other supplemental income

if there is an issue with your bank statement or account balance, who should you contact to resolve the issue?

your bank

what do you NOT need in order to fill out your 1040?

your employer benefits documentation

which of the following should you consider when setting a budget?

your financial goals, needs and wants, and savings

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

your financial institution

net pay is NOT...

your gross pay plus any bonuses

all of the following may be a part of your benefits package available from your employer, except:

FICA