Personal Finance EverFi Questions
Which is a tax-free savings account that can only used for educational expenses?
A 529 plan.
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.
The gig economy offers ________.
A flexible market that allows you to work short-term, independent jobs.
What should you use a loan to purchase?
A house, tuition for higher education, a car.
Which of the following statements about stocks is TRUE?
A stock is a share of a company.
Textbooks, transportation and room and board are all...
Additional costs for attending a college or university.
What are possible red flags or signs of a scam when buying a car?
Being told your financing fell through and charging of excessive fees.
Credit cards can help _____________ when paid off on time regularly.
Build credit history.
Which housing option gives you more freedom and more responsibility?
Buying a house
Which forms of payment is linked to a bank account which limits the amount of money you can spend to balance in your account?
Checks and debit cards.
Annual Percentage Rate (APR), credit limit, and penalties and fees are important to consider when _____.
Choosing a credit card.
Insurance that covers damage to your car from an accident is called...
Collision insurance.
When you are deciding what to buy, you should...
Compare the unit price of items similar to the one you want.
Which payment option takes money out of your bank immediately?
Debit Card.
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
An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for...
Emergency fund spending.
All of the following are true about the Free Application for Federal Student Aid (FAFSA):
The earliest you can submit your FAFSA is October 1st of each year. States have different deadlines for applying for state aid. You can fill out the FAFSA if you are independent or dependent.
Which of these items is NOT important to consider when selecting a credit card?
The look of the credit card.
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.
What is the best reason for why someone would want to lease a house instead of buy one?
They are planning on living there for a short period of time.
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 is a benefit of having a good credit score?
When you need a loan, you'll have more loan offers to pick from.
All of the following are benefits to paying the full balance on your credit card each month EXCEPT:
Your credit score can decrease.
What will happen to your credit score if you do not manage your debt wisely?
Your credit score will go down.
If you get into a car accident, your _______________ may increase because you will be considered riskier for insurance companies to cover.
Insurance premium.
The cost of a secured loan is typically lower than the cost of an unsecured loan because _______.
It requires a colateral. They are less risky for the financial institution, and usually have a lower interest rate.
To maintain a good credit score you must ______.
Manage your debt wisely.
The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is called ________.
Net Pay
Which example shows an advantage of owning a car over leasing one?
No restrictions on the number of miles to drive and the ability to customize, or make changes to the car.
Federally-funded grants require the student to...
Have financial need only.
Going directly to a car dealer for a loan to keep things simple is a...
Not great because they typically offer higher interest rates.
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.
What can insurance protect you from?
Theft and Financial loss.
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.
A compound interest card pays more than a simple interest one.
True.
The price of a single item within a group of items is known as the ______________ of the item.
Unit price.
What do you need in order to fill out your 1040?
W-2
Which is an example of a risk management strategy?
Wearing a seat belt while driving. Wearing a helmet while biking. Wearing reflective clothing while biking at night.
Which of the following financial institutions typically have the highest fees?
Check cashing and payday loan companies.
Which type of bank account is best for everyday transactions?
Checking Account.
All of the following may be a part of your benefits package available from your employer, except:
FICA
There is no relationship between the level of education received and lifetime earnings.
False
What budgeting tip(s) would help you to stay on track financially?
Find a friend with similar goals and hold each other accountable.
Everyone interested in post secondary education should complete the Free Application for Federal Student Aid (FAFSA) because...
It allows you to be eligible for federal student aid and other scholarships and grants.
What is one of the best ways to get reliable information about a product?
Search online reviews.
Choose the statement that is true about health insurance.
You should always have health insurance regardless of your circumstances.
Charitable donations, entertainment expenses, and financial goals are all examples of...
things to consider when creating a budget.
What is NOT a useful strategy when making an informed purchase?
Purchase a product based on a social media influencer.
In addition to needs, what should you plan for first when creating a budget?
Recurring expenses
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.
Buying a home security system is an example of protecting your home against________.
Risk
Living at home while enrolled in post secondary school or training can save money on....
Room and board but it raises costs for transportation.
Which of the following is NOT a good way to track your spending?
In your head.
Which of the following should NOT be considered when setting a current budget?
Future income.
Which of the following answers lists 4 year colleges from generally the least expensive to most expensive?
In-state public university, out-of-state public university, private university.
Which choice or choices best describes the purpose of an emergency fund?
An emergency fund prepares you for unexpected expenses, keeps you from borrowing money from friends and family, and removes the worry about expenses not in the budget.
Which method of payment actually is a form of borrowing money that needs to be paid back later?
Credit Card
Which of the following is TRUE regarding unexpected expenses?
They should be panned for.
Why should you purchase insurance?
To prevent financial burden in the case of an accident, theft, or another event.
Leasing a car may be a better option than buying a car if...
You don't plan on having it for long and don't want to worry about regular maintenance.
How would you reconcile your bank account to avoid spending more than you have?
Compare your own records of your spending with your financial institutions's records.
Making a good purchasing decision requires __________.
Comparing the prices of similar items, reading reviews of the product, and if its possible wait until the product is on sale.
Which payment option can offer additional security like fraud protection?
Credit Card
Which payment option could have interest charged to you?
Credit Card
Bank statements, credit statements, and records of cash expenses help you to estimate your ________.
Expenses.
How much you're being paid is the only thing you need to consider when considering a job offer.
FALSE
Your financial institution can't help you if there is a mistake on your bank account statement.
FALSE
When looking for pre-approval on a car loan you should NOT...
Get a car loan directly from the dealership.
Which of the following is a reason someone should get health insurance?
Health insurance protects you financially from medical emergencies.
Why is using a budget beneficial?
Helps to keep track of the money you receive, to prioritize your spending, and to reach short- and long-term financial goals.
Earning a degree can be expensive but which example shows why it might be worth it?
Individuals with a bachelor's degree typically earn a higher annual salary than those without one.
What does liability insurance cover in the event of an accident?
Injury to the other driver. Damage to someone else's property and or car.
What should you do before you use an ATM?
Inspect the ATM and its surrounding s to make sure it is safe to use.
Something people buy to protect themselves from losing a lot of money in the event something happens to them or their property is known as...
Insurance.
Why is figuring out the unit price of something useful when shopping?
It helps you determine the best deal.
What are the benefits of attending a local community college?
It is cheaper to earn an Associate's degree at a community college and then transfer to a four year college to finish. You can live at home and save dorm fees while earning an Associate's degree. Choosing a local community college within closer driving range saves on transportation costs.
Which is NOT a positive reason for using a credit card to finance purchases?
You will get charged high interest.
What is NOT a benefit of having a good credit score?
You'll get accepted to better education institutions.
Which of the following is NOT a possible tax or deduction that could show up on your paycheck?
Sales Tax
How is an advertisement different from a comment from a regular consumer?
The advertisement is likely one-sided.