Financial Literacy Test Review

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Which 2 items are important to consider when selecting a credit card?

APR and fees

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

Unexpected expenses... (3 things)

Can make it hard to stick to your budget May cause you to be unable to pay necessary bills Should be planned for

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

Checking account

Which forms of payment are linked to a bank account which limits the amount of money you can spend to balance in your account? (2)

Checks and debit cards

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

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

Making a good purchasing decision requires _______.

Comparing the prices of similar items Reading reviews of the product Waiting until the product is on sale

Which payment option takes money out of your bank immediately?

Debit card

What are common features of financial institutions? (3)

Direct deposit Paper checks Access to ATMs

What can be included in a benefits package available from your employer? (4)

Disability insurance Matching contributions to a retirement account Health insurance Paid time off

What helps you prepare for unexpected expenses?

Emergency fund

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

Federal grants

What possible tax or deductions may show up on your paycheck? (4)

Federal income tax Retirement savings FICA State income tax

What are 3 benefits of using a budget?

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

Check cashing companies are known for charging (high or low) fees?

High fees

What should you do before you use an ATM?

Inspect the ATM and its surrounding to make sure it's safe to use

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

What should be considered when setting a current budget? (3)

Needs Wants Savings

Which savings account will earn you the most money?

One that compounds interest daily

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

Paying more interest

Why is it important to have insurance? (2)

Protect themselves from losing a lot of money in the event of an unpredictable event or something happens to them or their property Individuals can defend against the possibility of financial loss due to unpredictable event

What do you need to do to help you protect yourself from identity theft and fraud? (3)

Regularly monitor your credit report Contact lenders and credit bureaus to address incorrect information Freeze your credit

What additional costs to a four year university will most likely be the most expensive?

Room and board

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

Round up your expense estimates to add a buffer

Taxes are used to help fund what? (3)

Schools Government departments Roads and emergency services

What is one of the best ways to get reliable information about a product?

Search online reviews

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

What are 3 benefits of having a good credit score?

You'll have more loan offers to pick from You'll get better interest rates on your loans It will be easier to get an apartment

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, room and board are all...

additional costs for attending a college or university

When you are deciding what to buy, you should ...

compare the unit price of items similar to the one you want.

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

The ________ is a flexible market that allows you to work short-term, independent jobs.

gig economy

Liability insurance is...

insurance that will pay for injury to another driver and/or damage to their car if you are in an accident -- does not cover injuries to yourself

Everyone interested in postsecondary education should complete the Free Application for Federal Student Aid (FAFSA) because...

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

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

opening a 529 plan

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

risk management strategies

An insurance premium is paid by...

the policyholder

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

The envelope method, notebook and pencil, and online software are all methods of _____________.

tracking your spending

The price of a single item within a group of items is known as the ________ of the item.

unit price

How is an advertisement different from a comment from a regular consumer?

The advertisement is likely one-sided

What is net pay?

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

What are 3 things you need to know about Free Application for Federal Student Aid (FAFSA)?

The earliest you can submit your FAFSA is October 1st of each year The form is available online or on paper States may have different deadlines for applying for state financial aid

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

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

Secured loans are less costly than unsecured loans because _________. (2)

They usually have a lower interest rate Require collateral 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 To determine if you were charged any fees

What is the purpose of the W-4 form?

To inform your employer of how much federal income tax to withhold from your paycheck


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