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