Personal Finance Review
Which formula should Jordyn use to calculate her net worth?
Assets - liabilities = net worth
One element of a financial goal is missing in the example below. Which one is it? "I will save $150 each month to go on a vacation in one year."
Attainable
Austin has just received his first paycheck. He worked 22 hours at his new job and is being paid $8.00 per hour. He calculated that his paycheck should be $176. His paycheck amount is almost 1/3 less than he expected. What is the most likely reason that Austin's pay is less than he expected it to be?
Austin neglected to deduct the amount required to pay income and payroll taxes.
David earns $5000 per month at his accounting job. He has a student loan payment of $120, a car loan of $300. Which statement is true?
David's credit payments are within the safe range for someone with his income
It is recommended that one's educational loan payments require no more than 10-15% of one's estimated starting income. What should a student consider in order to calculate this amount?
Debt-to-income ratio
Elliot's stock broker is suggesting that he consider investing in a diversified portfolio. A diversified portfolio is desirable because it:
Decreases risks by investing money in a variety of investment tools.
Ally learned in her Personal Finance class that some paycheck deductions are required and others are optional. She is checking over her paystub and sees several deductions. Which of the following would be true?
Federal income tax, state income tax, social security, and Medicare deductions are all required deductions.
Which is not a good example of a durable good?
Food
Carson's family has always struggled financially due to his parents leaving high school before graduating and working lower paying jobs to support the family. His parents do not want him to make the same mistake and are encouraging him to apply for scholarships and any type of student aid he might qualify for. Which application will determine which type of need-based aid he will qualify for?
Free Application for Federal Student Aid (FASFA)
Which is a feature of a certificate of deposit?
Funds deposited in a CD are held for a certain length of time.
One's Lifestyle is to their Standard of Living as present is to __________?
Future
Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non-contractual expenses. Which of his expenses best fit that category?
Gasoline, food, and entertainment.
Diana has faced the fact that she and her family need to explore assistance programs they might qualify for during the time she must be off work following an accident. How might she and her family locate an appropriate program?
Go to www.govbenefits.gov on the Web.
Which of the following is likely to have the least influence on an individual's values?
Grade average
Shannon is reviewing her pay stub to determine how much money she earned before her deductions were subtracted. Which column should she check to find this amount?
Gross Income
Dylan is concerned about the safety of the money in his savings account. Which type of depository institution should he choose?
He could safely choose either a commercial bank or a credit union, as long as his savings account balance meets the insurance requirements.
Jaimen is struggling to make his student loan payments after college. He is considering defaulting on the student loan. Which is not a potential consequence if he decides to default on the student loan?
He may not be able to obtain a marriage license
nsurance can be purchased to protect one from which of the following losses?
Health care expenses
Zoe has been assigned by her school counselor to complete a career assessment. Which statement BEST describes why her counselor has suggested she do this?
Her counselor wants Zoe to match her skills, abilities, interests and values with a list of specific occupations.
Shelby is working on her spending plan and would like to spend less on her food for 6 months as she saves toward purchasing a more reliable vehicle. As she makes her plan, which factor would be least important to consider:
Her personal prefrences
Tiffany was recently involved in a vehicle accident. In order to get her car fixed, her insurance company is requiring her to pay the first $500 of the repair bill because:
Her policy deductible is $500
Individuals with more formal educational training usually have:
Higher estimated lifetime earning
The most common relationship between risk and return in investing can be stated as:
Higher risk indicated higher return
In relation to the rate of inflation, it is best to have the rate of return of an investment:
Higher, to maintain purchasing power
Kylee's Personal Finance class When has been discussing the importance of understanding liquidity and she is trying to explain the term to another student. Which statement is most correct description of liquidity?
How quickly an asset can be converted into cash
Lora is a high school computer and technology teacher. She enrolls in a computer class at least twice per year to stay current on recent technology changes and updates. By continuing her education, Lora is investing in her
Human Capital
Which question does not represent a topic that teens should ask parents and guardians about estate planning?
"How much money do you have in your checking account?"
Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal with holdings tax, $33.21 into state with holdings tax, and $42.05 into FICA (Social Security Tax). What is Bob's net pay on his paycheck?
$501.66
James received his first medical bill of the year. It was a total of $1000. His health insurance policy has a $500 deductible and a 20% co‐insurance. How much of the medical bill will Jade be responsible to pay?
$600
Bob is working for a bank. He earns $8.00 an hour, works 40 hours a week, and gets paid every 2 weeks. Every pay period he pays $63.08 into federal withholdings tax, $33.21 into state withholdings tax, and $42.05 into FICA (Social Security Tax). What is Bob's gross pay on his paycheck?
$640.00
Advocacy is:
The act or process of writing or speaking out in favor of or about a cause
Brett plans to save money toward purchasing a car. His co‐worker is telling him about a Money Market Account he has that offers a tiered interest rate. What is Brett's co‐worker talking about?
The amount of money he earns depends on the balance.
Sarah learned in her Financial Education class that she needs to consider the cost of living when comparing job offers. Which is the most important consideration?
The average cost of basic necessities, such as housing and food in the city where her new job is
Jonah is writing down his liabilities to complete his Statement of Financial Position. The item he should include would be:
The balance on his credit card
Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than by paper paycheck, direct deposit, or payroll card.Hunter is excited that the amount of money he will take home each week will be larger since his employer will not be deducting any taxes from it.His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300 per week. Which statement is most likely to be true?
Hunter will need to pay his federal and state taxes on his own, since his employer is not paying these required taxes for him.
Paying the minimum payment on a credit card every month will:
Make the final amount paid substantially higher than the higher amount initially charger to the card.
Megan's mother suggested that she was experiencing the consequences of her trade off regarding a decision she made to purchase a dress for prom. Which situation does Megan most likely find herself in for her mother to have made this comment?
Megan had shopped at several stores when she found the prom dress of her dreams and purchased it. She used the money she had saved for the prom dress PLUS most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on.
Megan's credit card statement indicates that she is now paying a Penalty APR. Which scenario best describes what may have happened?
Megan missed her January and February credit card payments while she was participating in her college's study abroad program.
In relation to the other options, how liquid is a savings account?
More liquid than a Certificate of Deposit
Which statement is false?
Most people have several careers throughout their lifetime.
Which statement is true of mutual funds?
Mutual Funds are diversified investments
Gross income - deductions =
Net income
Sylas is studying financial planning in one of his classes. His teacher has assigned him to create a timeline of his financial future. Where should the end of his financial planning timeline be set?
Never - It is an ongoing process
When may a person view his/her credit report for free?
Once a year, from each of the three main credit reporting agencies
Maggie will need to pay $120 per month in order to purchase a health insurance policy. This monthly payment is known as the:
Premium
What is the difference between property and liability insurance?
Property insurance pays for loss to the insured person whereas liability insurance pays for loss to other people.
Rent is defined as:
The cost of using someone else's property
Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class. He has come across the following statements he is considering adding to his presentation. Which should he exclude from his presentation because it is not correct?
Property taxes are assessed at the same rate for all types of property, including homes, land, and buildings, regardless of location or whether they are used for business or personal use.
Which is not considered a form of giving?
Reading about the storm victims of Hurricane Katrina
Why is investing in product research an important part of the planned buying process?
Research enhances satisfaction
Paxten is purchasing a new phone online. What is the best tip should he consider to do so safely and maximize his satisfaction?
Review shipping and return policies in advance
Charis wants to decrease the risk of fraudulent use of her credit cards. Which strategy would be the most effective?
Signing the back of her card with her signature and "Please see picture ID"
When Charles received his college placement test results, he is informed that he will need remediation in math. Which situation IS NOT TRUE of Charles' situation?
Since the remedial courses Charles must take will not count toward his degree , he needs to take the courses but tuition is not charged.
Alyssa's childcare provider called to tell her that the provider's young daughter woke up ill and she won't be able to care for Alyssa's son today. Alyssa's friend, who is a stay‐at‐home mother, agrees to care for Alyssa's son today so Alyssa can go to work. Alyssa has utilized:
Social Capital
Jose has been challenged by his academics adviser to develop some human capital this school year. Which of the following is least effective?
Spend additional time playing video games to further develop his eye hand coordination.
When is your spending plan complete?
Spending plans are always under revision so they are never complete.
Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in Indianapolis, IN earning $32,000 per year. If Kansas City's Cost of Living Index is 100 and Indianapolis' Cost of Living Index is 125, which is true?
Susan will have more spending power if she stays in Kansas City.
Julie is a single mother who recently lost her job. She would like to obtain training in the medical field in order to increase her future income and support her two children. In order to do this, she will need help paying some of her expenses while she is going back to school. Which government program might offer her assistance to help with living expenses and job training?
TANF
Carson's wallet with his driver's license, a debit card and his credit card has been stolen. Which of the following is NOT something an identity thief might realistically do with this information?
Take a college admissions exam in Carson's name.
Jenna wants to improve her financial well-being. Which of the following would contribute the most to her financial well-being?
Taking a personal finance class to learn how to manage her money.
Alisa is looking for an investment that is structured to have tax benefits. She should look for information on:
Tax-advantaged investments
Which statement is true with regard to paying taxes on investments?
Taxes are often owed on profits generated from investments?
Due to unexpected circumstances, Ariel is temporarily receiving income from a government assistance program. The funds she receives through the government program are most likely funded by:
Taxes at the local, state, and federal levels
Andy is developing an Income and Expense Statement. He has gathered all his receipts, bank statements, paycheck stubs, and spending records. He needs to categorize them into income and expenses. He is unsure which items should be recorded as expenses. Which should be recorded as expenses?
Taxes deducted from his paycheck, money saved from his paycheck for emergencies, and his car insurance
Which statement could be true in most states?
Teens under the age of 18 may not write their own will
When Bryce attempted to borrow money at the bank, he learned that his credit score is low. Which best describes what this is likely to mean for Bryce?
The interest rates on his loan will be higher, since his credit score is low.
Which statement is not true about property taxes?
The property tax rate is set by the federal government to be equal in every state.
Harris is concerned about the effects of inflation on his investment returns. Which statement best describes inflation?
The rise in the general level of prices
Which statement is true of government assistance programs?
The ultimate goal of government programs is for individuals to become self‐sufficient and independent.
The equity that you build by making mortgage payments is:
The value of the home after the mortgage debt is subtracted.
Which statement would not be true about the value of career research?
There are many careers that would support your well-being. Career exploration allows you to find the one that pays the most so your well-being is enhanced to the highest degree.
Erica wants her class project to reflect her values. Which items would be best to include?
Things that reflect her fundamental beliefs about what is worthwhile and important to her
Which is a feature of a money market deposit account?
Tiered interest rates
Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his FIRST step?
Track his current income and expenses-if he already created an income and expense statement then he has completed this step.
When a goal has been set to save $100.00 a month for an emergency fund of $2000.00, giving up food from the vending machine to achieve that goal is the:
Trade-off
Tyler is trying to be responsible in using his new credit card and has heard there is a way to avoid paying interest on the things he charges. How can he LEGALLY avoid paying interest when using his credit card?
Tyler needs to pay the credit card balance in full every month before the due date listed on the credit card statement.
If the resulted emotion of giving includes resentment, guilt or anger the giving would be considered:
Unhealthy
Ashley plans to do some of her Christmas shopping online. What is a safety tip to follow when she is shopping online?
Use a credit card
An example of a transferable skill is a skill:
Used in your job that you acquire through past jobs, volunteering, hobbies, school, sports, or other life experiences
Which is an act of identify theft?
Wrongfully acquiring and using someone's personal identification.
The average cost of basic necessities, such as housing and food for a particular city is call the:
Cost of living
Which is NOT an example of a data furnisher?
Credit card company
To answer the essay test question about the meaning of open‐end credit, Ryan should include which statement?
Credit is extended in advance so the borrower does not have to apply for credit each time credit is desired.
Which is not included in an individual's credit report?
Current and past addresses.
Conner wants to purchase stocks with the money he received from his tax return. Who would he contact to make the transaction?
A brokerage firm
A rental agreement is often referred to as:
A lease
Sally is researching a new tablet and conducting research using a variety of sources. What is an example of an unbiased source?
A product review from an independent company.
Which is not true with regard to investing in stock?
A stockholder owns part of a company
A bond is:
A type of debt that a company issues to investors for a specified period of time.
Samantha wants to be able to use funds in her checking account but finds going to the bank to withdraw cash to be inconvenient. She would like a more effective way to access her checking account funds. What would you suggest she do?
Apply for a debit card. That way she can use the card instead of cash to purchase the things she needs and the amount spent is immediately deducted from her account.
Edward wants to develop a positive credit history. How should he do this?
Maintain reasonable amounts of available credit
Which is not considered a positive outcome of estate planning?
Ability to increase time, effort, and dollar costs incurred by survivors
What is the most appropriate type of giving at the following life cycle stages?
All of the above qualify as appropriate types of giving during the life cycle stages.
Amanda and Marcus just finished their Income and Expense Statement for last month. They discovered that they have a net gain. What does this mean and what should they do?
Amanda and Marcus are earning more money than they are spending. They could place additional money in savings.
Eric has chosen Amanda to be the beneficiary of his life insurance policy. What does this mean for Amanda?
Amanda will receive any proceeds if the Eric dies
Amber's academic adviser has asked her to set 3 academic goals for this semester. These goals are MOST LIKELY to be accomplished if:
Amber writes down her goals
Carter wants to participate in an activity that will improve his well-being. Which activity would contribute the most to his well-being?
An activity that makes him lose track of time
Which statement best reflects the philosophy of "pay yourself first"?
An individual should set aside a predetermined amount of money for saving before using any of that money for spending.
Healthy giving occurs when:
An individual wants to give back and the result is positive emotions for both the giver and receiver
Caitlyn's parents were rushing off to a meeting to get some help planning their estate. When Caitlyn asked who they were meeting with, her parents likely told her they were going to the office of:
Any of the above
David plans to apply for college in 2 years. His guidance counselor suggested that he begin adding items to a 'college/training application' folder. Which items WOULD NOT be helpful as additions to this folder?
Copies of awards and achievements he earns
Brett borrowed money to purchase a vehicle without making a down payment and now he owes more on the vehicle than it is worth. This situation is referred to as:
Being upside down on the loan
Erica is an active member of the Silver Cord program at her school. Through this program she commits to completing at least 25 hours of community service each year of high school. Her adviser has encouraged her to explore volunteering with non‐profit organizations. Which of the following would qualify as a non‐profit?
Big brothers/Big sisters
As Jonah plans for his future, his family has challenged him to create a SMART goal for his career education and training. Which question is the least important one to consider at this point?
Can I get the education and training I need near where I currently live?
Mallory has set a career goal of becoming a veterinarian but does not have the money to complete this goal without taking out very large student loans. She decides to attend a 2‐year program to become a veterinary technician, and then work for 3 years in that field while she saves money for her remaining 2 years of college and veterinary school. Mallory's plan is known as a/an:
Career pathway
Jacob is wondering how he can improve his intellectual well‐being. Which of the following would contribute the most to his intellectual well‐being?
Challenging himself by taking on a new project at work
Which is a general rule when dealing with credit reports to minimize identity theft?
Check each credit reports at least once per year.
Hannah needs a savings tool to help her manage her everyday purchases. The savings tool needs to be very liquid and accessible. Which of the following savings tools should Hannah choose?
Checking account
Becky no longer wants to use her Clothes‐R‐Us store credit card. What is the best thing she could do with the credit card?
Close the account by phone and in writing, then destroy the card.
Joanna has arranged to complete a job shadow with a physical therapist to decide if this is a career she wants to pursue. Which of her concerns is she MOST LIKELY to have answered as a result of her job shadow?
Common tasks and typical daily activities
When making food decisions, which of the following is most likely to be least expensive?
Convenience foods
Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students' comments were based on fact while others were based on myths. Which aspect of security at a depository institution is NOT TRUE?
Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than a $100,000 balance.
Alyssa is considering purchasing a car and wants to be sure she can afford to drive it during the school year when she doesn't have a job. Which expense WOULD NOT be considered part of the total transportation expenses:
Depreciation
The most secure method for an employer to pay employees is to use:
Direct Deposit
Employment opportunities for Jackie and David are limited, but they both have jobs earning just a bit more than minimum wage. Which federal program will encourage them to file a tax return by offering a financial incentive to them?
Earned income tax credit
Compound interest is best defined as:
Earning interest on interest
Dylan is preparing a presentation about saving and the presentation rubric says that he must include an explanation of compounding interest. Which of the following statements would be the best one to include in his presentation to show that he understands compounding interest?
Earning interest on interest
Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which is his best choice?
Education pay sin higher earnings and lower unemployment rates
As part of Nicholas' new job, his employers will provide health, life, and disability insurance. Access to this insurance is provided in addition to his regular salary. This is known as:
Employee benefits
Steven is considering taking a job with a company that is offering gym memberships, flexible hours,repayment of education loans, merchandise discounts, and childcare. These components of the job offer are called:
Employee benefits
Leah is trying to explain the difference between open‐end and closed‐end credit to her roommate.Which statement should she include in her description of closed‐end credit?
Equal payments are required on a regular basis until the loan is repaid.
Planned giving can occur through:
Estate planning activities
Perry would like to purchase a new car. What should he consider first in the planned buying process?
Evaluate the opportunity cost and trade‐offs to purchasing the car
Which of the following factors is not influenced by values?
Everything is influenced by values
Ian has been shopping for a different vehicle for the past several months. He needs something reliableand would really like something with a nice sound system. He and his parents have talked about how much he can afford and he plans to stay within the price guidelines he and his family have set. Ian was analyzing the opportunity cost of a trade‐off regarding which car to purchase. Which situation best represents what he might be thinking through?
Ian has found two different cars at a local dealership that meet his needs. The first car has a better sound system than the other. The second car has 20,000 fewer miles on it.
Steven is moving into his first apartment in a few weeks and has been busy packing. In addition to the things he has purchased with money earned from his full‐time job, his parents have told him that he can take the furniture in his bedroom and his bedding when he moves out. His parents are providing for him with which type of income:
In-kind income
To increase his net worth, Jackson could:
Increase his assets
Maggie earns $62,000 per year and has a net worth of $20,000. Samantha earns $96,000 and has a net worth of $15,000. Who is wealthier?
Maggie, because her net worth is higher than Samantha's.
It is recommended that life insurance be purchased when the:
Individual has dependents
Which best describes the benefits of insurance
Insurance combined with emergency savings provides a sense of financial security and peace of mind.
Direct Subsidized Stafford Loans offer some features that are different when compared to borrowing money from a bank to pay for college.Which is not a difference between a Direct Subsidized Stafford Loan and a typical bank loan?
Interest rates for Stafford loans tend to be higher because the loans are held for a relatively long period of time.
When taking advantage of the time value of money, which of the following is most likely to result in the largest return?
Invest as long as possible and at the highest interest rate possible.
Which statement is about our interactions with money is not considered to be true?
Investment increases risk and reduces your ability to cope with risk and uncertainty.
Jake's credit application has been declined because of his negative credit history. Which statement is most likely to be true?
Jake has applied for 4 credit cards and a car loan in the past 6 weeks.
If a person drives an automobile, they are required by law to have Automobile Liability Insurance. In which situation would this type of policy protect the policyholder?
James backed into a vehicle in the grocery store parking lot and caused $2000 in damages to his own car and $3,000 in damages to the other vehicle.
Jenny is 18‐years‐old and has applied for credit for the first time. Her credit application was declined because she has no credit history. What would you recommend Jenny do to being to build a positive credit history?
Jenny should obtain a secured credit card.
The financial counselor that Ariel consulted about her use of credit recommended that she keep her use of credit within safe boundaries. Ariel's financial counselor most likely told her to:
Keep the total amount of money she has borrowed, not including her house, under 20% of her net income.
Common fees that may be charged by a depository institution include all EXCEPT:
Late fees
Mark and Susan, a recently married couple with full‐time jobs, set a goal of putting $200 in savings every month to make a down payment on a home in five years. What type of goal have they set?
Long term
Erin has been in college for 2 years and has decided that the major she has been studying isn't for her. Changing her major and/or her college could result in:
Losing credits for classes she has already taken.
The money one would have earned if she/he had worked instead of continuing her/his education is called the:
Opportunity cost.
David made a mistake in his checking account recordkeeping and spent $10 more than he had deposited in his account. As a result, he can expect to be charged a(n):
Overdraft fee
When Rob graduated from college, he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the U.S., Europe,and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the funds he saves in his personal retirement account. Rob has always been very healthy, but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation.His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take.Rob's parents asked him what employee benefits his employer was providing. Which would be considered an employee benefit?
Paid sick leave
Patty recently moved into a new apartment with her friend Emma. Who is responsible for purchasing renter's insurance?
Patty and Emma
The regular schedule that employers pay their employees is called the __________.
Pay period
Which action would not make an individual vulnerable to identify theft?
Paying cash for a movie ticket
Which statement is true about payroll taxes?
Payroll taxes fund the Social Security and Medicare programs.
Sean plans to attend college in 2 years. He and his family have saved some money to help pay for it but he wants to explore ways he can receive money he won't have to repay. Which set of options should he explore?
Pell Grants, work-study, and scholarships
Matt wants to guard his personal information. Which personal information is LEAST LIKELY to be used by scammers?
Phone numbers
Which statement is TRUE regarding college‐level expectations forstudying and completing projects?
Plan backwards from major deadlines.
Career assessments help to identify:
Possible career areas related to one's interests
When Rob graduated from college, he considered two different job offers before accepting his job as an accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to work each day. He also loves to travel and his job will require him to travel several times each year to conduct audits in manufacturing plants throughout the U.S., Europe, and Asia. He receives a monthly salary and his employer pays his health insurance. His employer also matches the fund she saves in his personal retirement account. Rob has always been very healthy, but he appreciates knowing that he has several days of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the classes he needs to take. When Rob compared the Cost of Living Index for the city he currently lives in with the city where the other job was located, the index for his city was 106 and the index for the other city was 78.Which statement is most likely to be true?
Rob chose his current job for reasons other than a lower cost of living
Medicare is provided by the Federal Government for individuals in specified circumstances. In which of the situations below would the individual most likely be receiving Medicare funds?
Rosie is 67 years old and in need of a health insurance program.
Which federal program assists low income families in purchasing nutritious foods?
SNAP
Sarah will turn 18 next month. She plans to apply for a credit card. Which statement is true?
Sarah can only obtain a credit card if she has a co‐signer or proof of sufficient income to make the required payments.
Which correctly describes the security level of savings tools?
Savings tools are secure because they are protected by the U.S. government against loss
Chad has decided to rent an apartment and is gathering information to be sure he has enough money saved for all the expenses when his moves in. His landlord explained to him that he would need to pay a fee to cover any potential damages that might occur while Chad is living in the apartment. This fee is called the:
Security deposit
To be considered for lifelong employment a person must continually maintain their employability. Which of these actions will not help maintain employability?
Seek ways to blend your personal and professional images online to enable current and future employers to see that you have a varied and interesting life both in and outside of work.
Which is not considered part of the steps of estate planning?
Selling off assets
Who is medicare designed to help?
Senior citizens
Jamie has elected to be paid by direct deposit at her new job. This means:
She will receive her pay directly into her checking account at her depository institution for each pay period.
Melissa needs to a vehicle and is considering leasing one. This means:
She would be renting the vehicle by making payments over time, although the vehicle title would remain with the lease grantor.
Kaylee will save her allowance of $25 per month to purchase a $150 mp3 player in six months. This is an example of what type of goal?
Short term
Saving tools offered by depository institutions may earn interest. Which of the following statements is NOT TRUE about interest?
When earning interest, look for low rates
Evan is writing a scholarship essay about the importance of responsible money management. He wants to explain the meaning of borrowing. Which statement below would explain the importance of understanding the process of borrowing money?
When you are borrowing, you are spending future income.
Whitney is shopping with her mom and they are deciding on clothing to purchase. Which scenario BEST represents the purchase of a NEED?
Whitney has been selected to attend a national leadership conference and has been instructed that she will need to dress 'professionally' for one of the tours. She plans to wear a T-shirt that has the logo of the leadership conference on it. Her mother thinks she needs to purchase something more.
MirandaMiranda is working to develop a broad base of transferable skills. This means?
Will have a set versatile skill that she can apply to many personal and professional roles.
In which scenario should renters insurance be considered?
Zach and Leah have rented an apartment in an urban area.