finance final review
Which statement about student loans is TRUE?
you have to pay them back
Fatima is looking forward to college graduation in the spring but knows she'll need to start thinking about how to pay her student loans. Which is the best approach for Fatima?
more than the minimum she can afford
Jaime is creating a budget for the first time and doesn't know which to use - NET PAY or GROSS PAY. What do you tell him?
net pay
Which of these statements best describes the reason identity theft is such a huge concern?
no guarantee to get it back, takes years to get back if even
Which of the following would have the most positive impact on your credit score?
pay card in full and on time
Jennifer is trying to save up for an emergency fund of $3000. Which saving strategy would likely be most effective in helping her meet her goal?
pay herself first every paycheck
When using online and mobile banking, which of these is a smart tip to keep your account safe?
choose secure passwords
Igor receives his Financial Aid Award Letter and notices Federal Work-study in the amount of $2000. What does this mean?
his job helps pay for college
Which provides the BEST description of what a W-4 tax form is used for?
how much money to take out for taxes
You have $3000 per month to cover your expenses. You estimate your monthly costs to be rent of $1200, car expenses of $700, utilities of $200, insurance of $300, food of $400, student loans of $800, and going out with friends of $200. What is the end result?
overbudget
Which one of the following strategies will result in your paying NO interest to the credit card company?
paying in full and on time
Which of the following would impact your credit score?
payment history
Which person from this list is saving rather than investing?
person putting money into savings account
Choose the BEST answer: Which of these represents a major convenience of using a mobile banking app?
picture of check and deposits
Ryan has a major problem of overspending from each of his paychecks, even though his ultimate goal is to be saving money for college. His friend Sydney says Ryan's problem is that he's too worried about "keeping up with the Joneses." What does Sydney mean by this?
spending too much on materialistic things
Which statement accurately describes the difference between a student loan and a scholarship or grant?
student loans - need to be repaid scholarships/grants - do not need to be repaid
Marcellus is going into his senior year, and he's not sure whether he intends to start college the fall after graduation or take a year off first. How should he approach the FAFSA this school year?
apply anyway
Marcia works a part-time job during her junior and senior years of high school. Although her main goal is to save enough for a really nice laptop, she'd also like to build up an emergency fund. She wants to have at least $500 to take with her in case she needs it during college. Which saving strategy is most likely to help Marcia meet her goal?
automatically takes money
Hudson always makes the minimum monthly payments on all of his debts, on time. He receives a raise at work which gives him an extra $250 per month in take-home pay. If his primary goal is to minimize the amount of interest he'll pay over the lifetime of his debts, which debt should he pay down most quickly using his increased pay?
credit, highest number
Which of these would represent a withdrawal you could see on your monthly checking account statement?
debit and credit
Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account?
debit card or writing a check
Isaiah works at a technology company in the summer and earns $3000. After federal, state, and Social Security/Medicare taxes are deducted, his take-home pay is $2,500. Which of the statements below is CORRECT?
gross is the bigger number, net is what you make
Laura is a high school student who has a part-time job at a department store. All of the following options will be deducted from her paycheck EXCEPT...
health insurance
Which deduction is LEAST likely to be taken out of a high school student's paycheck from his part-time job at a department store? Assume he lives in a state that collects income tax.
health insurance
Jay asks his friends for advice: "Should I start doing mobile banking now that I've got my new smartphone?" Which friend is correct in their statement on the benefits of mobile banking?
yes bc easy, take a picture of check
Which of the following best describes the amount of money you'll have if you put $1000 into a savings account earning 1% annual compound interest for 10 years? You can ignore the impact of inflation in this question.
youll have slightly more
In which order do you want to apply for and accept aid to pay for college?
1) grants and scholarships 2) work study 3)subsidized federal loans 4private loans
StayWell Health Insurance is offering a plan with a monthly premium of $250, a deductible of $3500, and maximum out-of-pocket expenses of $6000. If Sheldon chooses this insurance, what is the MOST he should pay in one calendar year?
9000
Which definition best describes the FAFSA?
The application you complete in order to determine eligibility for federal student aid
Maura has started a full-time job as an accountant at a nonprofit organization. Which tax paperwork is she likely to receive during her first week on the job?
W4
Magda is going to finance her car purchase using an auto loan. Which statement below is accurate?
down payment and remaining balance equal the principle she has to pay
Which statement about overdraft protection is true?
fee is $25 or more
These high school seniors each bought $1500 of stuff to bring to college with them in the fall. Each one used a credit card with similar terms to make their purchases. Who will pay the LEAST interest for their purchases?
who payed down debt fastest
You've just turned 16 and obtained your first part-time job. You want to open a checking account as well as a savings account. Which of these questions is LEAST important to ask?
investment option
Using Target Date Funds can be beneficial for beginner investors, because...
it starts aggressive then rearranges funds
Mia is opening her first checking account, and she's trying to decide whether she should sign up for overdraft protection. Which friend's advice is most accurate?
its great only for emergencies
Which represents the most accurate description of how credit cards differ from loans?
loans- interest is fixed credit cards - interest varies
Caleb is trying to select his first credit card, and he's got it narrowed down to two options he thinks would work really well for his circumstances. What should his final step be before making a choice between the two?
lower interest rate and what rewards card has
Which item would you expect to find on your monthly bank statement?
monthly withdrawals
Super Smarts University has a sticker price of $45,000 per year. Kyle is applying there and uses their online net price calculator, which calculates a net price of $38,000 per year based on the information he is provided. He's #1 in his high school class, and he's got great SAT scores; so he's pretty sure he'll get in. How much will Kyle pay to attend?
not enough info to tell
When you have liability coverage with your auto insurance policy
will cover backing car into a fence
Which of the following is a method of spending the money in your checking account?
writing a check
Which statement accurately describes the difference between a traditional savings account and a certificate of deposit?
saving - takes money out CD - cannot take money out for a certain amount of time
School A has sticker price of $52,000 and an average net price of $6,000 for families with income of less than $60,000. Meanwhile, School B has sticker price of $22,000 and an average net price of $11,000 for families with income of less than $60,000. If your number one factor in selecting a school was cost and your family income was under $60,000, which school would you choose?
school A
Susie works two jobs so she can pay tuition without using loans, helps her sick mother with housework and errands, and is attending college. She knows she should be saving for retirement. Which strategy is best for Susie?
set up an IRA, put 20-40 in it
Your wealthy grandma gives you a $500 check for your middle school graduation, and you deposit it into your savings account which earns 1% compounding interest. You keep it there for 4 years until you're heading off to college and want to buy some dorm supplies. How much money do you have available? You can ignore inflation and assume no bank fees during this time.
slightly more than $520
If your auto loan is amortized over 5 years, you will pay ______.
the same amount
The purpose of a 1040 form is to...
to file annual income tax return