personal finances module 1 study guide

As technology changes, job opportunities change too. In the 1960s and 1970s there were television repair shops in every town and city. Now, there are few or none of these shops around. Which of the following factors could have led to this present situation?

All the answers are valid reasons.

Larry and Martha have an account set up at their credit union with $50 added to it each month from Martha's paycheck. She has been having this done each month for ten months. How much is in the account? [ Select ] ["$5,000.00", "$500.00", "$1,000.00", "$50.00"] Bob drives a used car that gets great gas mileage and so far he has not had to have any major repairs performed on the car. His mechanic told him the car should be good for at least another 2-3 years. Several of Bob's friends have new cars and have encouraged him to buy one, too. Bob just started a new job, and he is not sure if he will get to keep the job because of recent company layoffs. What do you suggest for Bob? [ Select ] ["Buy a new car no matter the cost.", "Keep the used car and make sure it is maintained regularly.", "Sell the used car and buy another used car with the money.", "Buy a new car, but only drive his used car and start driving the new car when the used one breaks down."] Laura bought a laptop four years ago, and she needs to replace it with a new one. The one she is looking at which fits into her budget costs $499.00 and will perform all that she needs it to do. Another laptop with a bigger screen and other options costs $699.00, but will not perform any faster or do anything more than the cheaper one can do. The store offers a service plan that protects against product defect and accidental damage for $99.00. What is the best decision for Laura? [ Select ] ["Buy the $699 laptop even though it doesn't fit her budgeted amount.", "Buy the $499 laptop with the $99 service plan.", "Get her old laptop fixed and upgraded for $299.", "Hope her parents will give her a new laptop for her birthday."] Last week Samantha had to get her refrigerator repaired for the fourth time. It is no longer under warranty and each visit from the repairman has been averaging $100.00 a visit. She can buy a new refrigerator at a local scratch and dent warehouse store for $599.00 with a 5-year warranty. She could pay for half of it with cash, but would have to charge the rest on her credit card. However, she could pay that off in three months. What do you think is the best choice for her? Buy the new refrigerator because of the high costs of repairs to her old one. Samuel wants to go on a mission trip with his church youth group. The trip costs $1,700.00, and he has $900.00 saved. His parents will loan him the rest if he will do some repairs around the house before he goes on the trip at the end of the summer. What should he do? [ Select ] ["Forget the trip and buy new clothes and video games with the money he has saved.", "Take his parents' offer and get started on the house repairs.", "Beg for money from friends and relatives so he can go on the trip.", "Wait and see if he gets birthday money that will cover the rest of the cost."]

Answer 1:$500.00 Answer 2:Keep the used car and make sure it is maintained regularly. Answer 3:Buy the $499 laptop with the $99 service plan. Answer 4:Buy the new refrigerator because of the high costs of repairs to her old one. Answer 5:Take his parents' offer and get started on the house repairs.

Choose the kind of paid workers that would work in each job. firemen [ Select ] ["volunteers", "workers with salaries paid for by tax money", "either paid staff OR volunteer workers"] police officers [ Select ] ["volunteers", "either paid staff OR volunteer workers", "workers with salaries paid for by tax money"] disaster relief [ Select ] ["volunteers", "either paid staff OR volunteer workers", "workers with salaries paid for by tax money"] library workers [ Select ] ["workers with salaries paid for by tax money", "either paid staff OR volunteer workers", "volunteers"] trash collectors [ Select ] ["workers with salaries paid for by tax money", "either paid staff OR volunteer workers", "volunteers"] teachers workers with salaries paid for by tax money prison wardens [ Select ] ["either paid staff OR volunteer workers", "workers with salaries paid for by tax money", "volunteers"] emergency medical services either paid staff OR volunteer workers local transit or school bus drivers [ Select ] ["either paid staff OR volunteer workers", "volunteers", "workers with salaries paid for by tax money"] Sunday school teachers [ Select ] ["workers with salaries paid for by tax money", "volunteers", "either paid staff OR volunteer workers"]

Answer 1:Correct!either paid staff OR volunteer workers Answer 2:Correct!workers with salaries paid for by tax money Answer 3:Correct!either paid staff OR volunteer workers Answer 4:Correct!either paid staff OR volunteer workers Answer 5:Correct!workers with salaries paid for by tax money Answer 6:Correct!workers with salaries paid for by tax money Answer 7:Correct!workers with salaries paid for by tax money Answer 8:Correct!either paid staff OR volunteer workers Answer 9:Correct!workers with salaries paid for by tax money Answer 10:Correct!volunteers

What line item is the most expensive category? [ Select ] ["housing", "food", "clothing", "auto"] What type of expenses might go under miscellaneous? [ Select ] ["house mortgage", "car loan", "health insurance", "emergency car repairs"] Since the home mortgage and car loan are separate line items, what kinds of expenses might go under "Debt"? all of these If this person is paying $140 a month for a car loan, how much is allocated in the budget for maintenance? [ Select ] ["$30", "$20", "$40", "$50"] Something very important is missing from this budget based on biblical standards. What would that line item be? [ Select ] ["second home at the beach", "tithing or charitable giving", "a European vacation", "guitar lessons"] What kind of adjustments could be made in order to fit that category back into the budget? [ Select ] ["it can't be done", "work a part-time job to add that amount of income to the budget", "adjust the percentages to allow for giving", "drop the category that has the highest cost"]

Answer 1:Correct!housing Answer 2:Correct!emergency car repairs Answer 3:Correct!all of these Answer 4:Correct!$20 Answer 5:Correct!tithing or charitable giving Answer 6:Correct!adjust the percentages to allow for giving

Using the above example of a W-4 tax form for the Internal Revenue Service (IRS), answer the following questions. What is the purpose of the W-4 form? [ Select ] ["This form is just for your employer's records and serves no real purpose.", "It is for your employer, so that they can withhold the correct income tax from your salary.", "It's a way the government can spy on you.", "It is the way bill collectors find how much you make in wages."] What withholding status did this person choose? [ Select ] ["Married", "Married, but withhold at a higher single rate", "No choice was made.", "Single"] How many total allowances did this person list? (Line H) [ Select ] ["2", "0", "6", "4"] How many allowances did this person choose to claim on this form? (Line 5) [ Select ] ["3", "1", "0", "2"] Do the number of allowances a person claims on the W-4 form have to match the number of exemptions that are claimed on their 1040 tax return form? [ Select ] ["No, this is simply information your employer needs for withholding purposes.", "Yes, or you cannot file a tax return.", "Yes, especially if you make over $100,000.00 a year.", "Yes, or the IRS will fine you."]

Answer 1:It is for your employer, so that they can withhold the correct income tax from your salary. Answer 2:Married, but withhold at a higher single rate Answer 3:4 Answer 4:2 Answer 5:No, this is simply information your employer needs for withholding purposes.

Don't buy on impulse or when you are [ Select ] ["with a friend", "sleepy", "under stress"] . Carefully check [ Select ] ["the time of day", "the weather", "ads and prices"] for the best deal, and never travel far to save a few pennies. You can shop [ Select ] ["at your friend's house", "the next day", "online"] for items when local stores no longer have them in stock.

Answer 1:impulse Answer 2:under stress Answer 3:ads and prices Answer 4:travel far Answer 5:online

Based on both budgets, answer the following questions: With education taking up only 2% of the federal budget and 29% of the local government budget, you can conclude that education spending would be more of a politically important issue at the local level. Military spending is generally a [ Select ] ["grade", "local", "state", "federal"] budget item. Social security, health, and human services are a big part of both budgets. [ Select ] ["false", "true"] Government budget categories are both less than 2%. false Both budgets have the exact same spending categories. false

Answer 1:local Answer 2:federal Answer 3:true Answer 4:false Answer 5:false

How many exemptions does this person claim for federal withholding? [ Select ] ["none", "two", "one", "three"] Based on the regular pay rate, what would be her gross pay for 20 hours? [ Select ] ["a little over $300", "a little over $100", "about $500", "about $200"] If she worked 3 hours overtime one week, how much pay would that be? [ Select ] ["about $83", "about $75", "about $68", "about $55"] How many hours of vacation has she been paid for, year-to-date? [ Select ] ["about 62 hours", "about 49 hours", "about 80 hours", "about 57 hours"] To determine net pay, take the [ Select ] ["gross pay", "regular pay only", "other", "deductions"] and subtract the [ Select ] ["income taxes only", "regular pay", "total deductions", "social security and medicare taxes only"] .

Answer 1:three Answer 2:a little over $300 Answer 3:about $68 Answer 4:about 62 hours Answer 5:gross pay Answer 6:total deductions

If you are not satisfied with the service you receive from the same merchant over and over again, you can always report them to the __________________.

Better Business Bureau

Stephen wanted to buy a used car when he started his new job. Which of the following ideas would NOT help him make the best decision?

Considering only cars that were his favorite color.

To keep up with your money in the bank, what is the best way to organize your accounts?

Consolidate your accounts with separate allocations going to checking and savings.

Based on the budget spending chart for the city, what are the three top categories for funding?

Education Human Services Safety

Different geographic locations offer different employment opportunities. Match each job to a suitable geographic location: deep-sea fisherman coal miner park ranger taxi driver white water rafting guide large-scale wheat/corn farmer teacher

Gulf of Mexico or Atlantic Ocean mountains of Virginia or West Virginia Yellowstone or Yosemite National Park metropolitan or urban area Nolichucky River or Colorado River the Great Plains of the United States any populated area: rural, urban, or suburban

Why is using a credit card a good idea when making a purchase? Choose the best answer.

It makes it easy to return the product and to dispute a sale that is questionable.

In considering purchasing products, what are some good guidelines to follow? Choose all that apply.

Make sure you know the policies for returns and refunds. Carefully read and make sure you understand any contract you sign. Get opinions from friends and relatives who have bought similar products. Don't travel far to save a few cents on the exact same product. Shop around comparing different deals for the same item. Make sure you know what the final price will be, including any extended warranty plans and fees.

Choose all possible reasons for shopping online.

Many online merchants give free shipping on orders. If you are using the same product model number, it will be the same item as in retail stores. You don't have to fight the crowds on busy shopping days. It is easy to compare the same item on different websites. You can check inventory to see if the item is in stock.

Tom interviewed several of his neighbors and asked them to fill out an anonymous survey about their jobs. He found that while one person's salary was $24,000 a year, another person's salary was $98,000. What are some factors that could make such a difference? Choose all that could apply.

One person has more years of experience than the other. The person who has a lower salary is working part-time. One person is a highly skilled technician and the other performs manual labor. One person owns his own business and the other works at a convenience store. Correct! The person with a higher salary has a higher level of responsibility. One person is in management, while the other is in an entry-level position.

Using the guidelines for spending covered in the lesson, choose all of the tips below that can help you be a wise shopper.

Save money in special accounts so you are prepared for large expenditures. Consider all the purchase options and costs before buying something expensive. Be a good steward of all your money and possessions. When you make a mistake with spending money, learn from your mistakes. Track expenses so you will know where your money is going. Pay cash for items that cost less than $5.00.

Why does an employee fill out a W-4 IRS tax form?

So their employer will know how much to deduct from the employee's earnings to pay taxes to the IRS.

Choose all items that are possible deductions from a payroll check.

Social Security taxes health insurance Medicare taxes federal income taxes state income taxes

Based on the first pie chart of budget expenditures, what is the largest category that tax money and other revenues are used to pay?

Social Security, Unemployment, and Labor

Amanda wanted to buy some furniture for her new apartment. Because she was bringing most of her furniture from home, she only needed a sofa and two chairs. After carefully shopping at several furniture stores she found what she wanted. Below are the possible options for financing her purchase. She plans on paying the cost of the furniture off in three months. Decide which option would be the wisest choice for her.

Store Credit --if it is paid off in 3 months, the interest rate would not be a factor.

Choose the budget item categories that are allocated less than 5% of the budget.

Transportation Food and Agriculture Education Science Government

Some merchants will match the prices of their competitors to get your business.

True

Another way to make sure you know what is happening with your money and financial obligations is to _________________________________.

Use computer software or internet services offered by your banking institution to track deposits and payments.

Choose all of the listed ideas that are helpful for making a large purchase.

Use the best alternative to pay without adding any fees or high interest. Make a spending plan outlining purchasing options. Wait for sales or rebates. Save and plan ahead so you won't buy on impulse and incur debt. Ignore peer pressure to overspend or buy something you don't need.

As a consumer, if you are not treated fairly or have a problem with a product or service, who should you contact? Match the correct response with each problem. Poor cell phone reception Bad tread wear on some new tires Milk that is sour but stamped with a date still in the future Electric outage due to storms or bad weather Poor satellite television reception Car running badly just after a tune-up Errors in your bank statement People smoking in the break room at work

Your cell phone service provider Tire store or manufacturer Local grocery store where you buy groceries Electric utility provider Satellite service provider Local mechanic used for servicing your car Your local bank customer service Your supervisor or human resources

Choose all the valid reasons for a product to be recalled.

a riding lawn mower has been reported to slip into a higher gear without the owner moving the shift lever airbags in certain car models fail to work properly in accidents small parts of a game break easily and become a choking hazard for children playing the game a toy has sharp plastic edges that can cut toddlers when they play with it a child's car seat breaks lose from the latch that holds it in place

Associate's degree Doctoral or professional degree biochemist, judge, orthodontist, veterinarian Master's degree Bachelor's degree Postsecondary non-degree award Some college, no degree High school diploma or equivalent Less than high school

air traffic controller, dental hygienist, nuclear technician, paralegal biochemist, judge, orthodontist, veterinarian archaeologist, librarian, physician's assistant, sociologist accountant, computer programmer, teacher, personal commercial diver, dental assistant, firefighter, insurance appraiser actor, computer support specialist, private investigator, resident advisor mechanic, electrician, fashion designer, office clerk baker/cook, cashier, manual laborer, taxi driver

One strategy for keeping up with important financial and personal information is to store that information on a secure website or in a safe deposit box. This would be important in case of _____________________________.

all of these answers are true

Rebates are incentives to buy that are often used in connection to what products?

automobiles

Match the profession to either education needed or geographic location. neurosurgeon taxi driver teacher coal miner park ranger

bachelor's degree, medical degree, residency at a hospital city with many people needing transportation bachelor's degree, student teaching mountain areas in West Virginia Yellowstone or Yosemite National Parker city with many

Yellowstone or Yosemite National Parker city with many

baker taxi driver cashier plumber pet groomer

Stephanie wants to work as a lifeguard at the community pool during the summer. What are some things she might be required to do or have before being approved for the job?

be a certified lifeguard through the Red Cross take classes in water safety have a background check to make sure she can work with young children be certified in CPR

Why is it a good idea for consumers to know what is in the food and products they buy? Choose all correct answers.

because caloric intake is important for some people to know because some people are on special diets and need to know specific percentages of certain items because some people need low-salt products because some people are allergic to some foods (such as peanuts) because some people cannot have foods produced in plants that also process peanuts

Which of the following items are typical expenses that someone would have on a regular basis?

cell phone bill utilities such as electricity or water car maintenance groceries rent or mortgage payment

Choose all possible sources of income.

commission from sales interest from a savings account tips as a waitress or waiter pay from a full-time job stock dividends

Match professions or jobs to the necessary training or education they require. You may check the Bureau of Labor Statistics if you need help. Use the following website (please contact your teacher if the website has an error or doesn't load): diesel mechanic trade or technical school specializing in diesel engines doctor undergraduate degree and medical school teacher undergraduate degree in the area of educational specialization pastor undergraduate degree plus seminary or graduate courses in religious studies electrician trade or technical school and an apprenticeship under a master electrician lawyer undergraduate degree and law school truck driver trade school and/or CDL certification

diesel mechanic trade or technical school specializing in diesel engines Correct!doctor undergraduate degree and medical school Correct!teacher undergraduate degree in the area of educational specialization Correct!pastor undergraduate degree plus seminary or graduate courses in religious studies Correct!electrician trade or technical school and an apprenticeship under a master electrician Correct!lawyer undergraduate degree and law school Correct!truck driver trade school and/or CDL certification

Sam moved to another city with his parents. He is in high school and wants to volunteer in some way. Which of the following would be his best opportunity since he is NOT 18 years old?

do yard work for neighbors and his church

What three basic factors do employers consider when they are hiring a new employee for a position?

education, skills, experience

If you have to drive a long way to save a few cents, it's still worth it.

false

You should not buy products when you feel pressured or are tempted to buy on impulse .

feel pressured or are tempted to buy on impulse

Although average salaries for teachers in Georgia are $3,000 less than the salaries for teachers in Hawaii, based on the cost of living index teachers in Georgia rank 4th in the nation compared to Hawaii (which ranks 50th). What might cause this to happen?

geography, tourism, climate

The federal government will often give a tax credit for what kind of consumer action? Choose all that apply.

installing solar panels to heat your home and hot water installing energy efficient replacement windows buying a vehicle that uses alternate sources of fuels/is fuel efficient

Choose all professions that require a college education.

medical doctor lawyer school teacher dentist

According to U.S. federal government spending percentages, what three areas does the federal government spend the most money on?

medicare and health social security, unemployment, and labor military and related expenses

What kind of bills can usually be set up to draft out of your bank account so they will be paid every month on time? Choose all that apply.

monthly charges for cable services loans and mortgages car loans cell phone bills credit card bills insurance premiums utility bills like electricity

Consumers have a right to a healthy environment. As a result new laws and regulations have been enforced to create safer and healthier environments for all consumers. Choose any of the statements below that support this effort.

no smoking on airplanes exercise rooms and equipment for employee use at businesses no smoking in restaurants stricter pollutant emissions ratings on automobiles strict emissions laws on coal-burning manufacturing plants no smoking in public areas such as hotel lobbies and businesses

Not all community or local jobs can be filled by volunteers because __________________________________.

not all people are qualified for all service opportunities (such as police work)

Match the word(s) on the left to the definition(s) on the right. regular earnings income tax Social Security tax overtime pay YTD (year-to-date)

pay received for a person's regularly scheduled hours a government tax based on a person's personal income a government tax used to help fund retirement benefits and disability payments pay received by a person for work done past their required schedule (usually paid at a higher rate) totals for earnings and deductions for the year

When you are looking for or considering a job, what are some of the factors you should know about the job?

pay, education, training

To make sure a building contractor can be expected to do a good job for you, be sure to check ____________________.

personal references and the Better Business Bureau

Because consumers have a right to choose among competing services instead of being forced to accept one company's service, often a certain service will be available from several different companies. What are some of these services? Choose the best answer.

phone service, television service, health insurance

If you look at the expenditures for a local government, the largest recipient of tax dollar funding always goes to which area?

public education

A consumer is anyone who __________________________.

purchases products or services for personal use or possession

Before buying an expensive item, what are some things you could do to make an informed decision?

review available product tests and performance records decide in advance what you are willing to spend ask those you trust to make wise financial decisions for advice research online make sure it is something you need or want

Choose all legitimate consumer rights that are generally accepted by most people.

right to be informed right to choose right to fair compensation right to be heard right to safety right to a healthy environment

What three basic factors do employers look for when hiring people for their company or organization? Choose the three best answers.

skills education experience

Why is it important for everyone with monetary and other assets to have a will? Choose all that apply.

so others won't have to decide what is best to do with your possessions and money because it relieves loved ones of added responsibility at your death so loved ones and family will know what you want to do with your possessions and money once you have died so the state won't be in control of your estate because it benefits those who you wish to bless after you are no longer able to help them in person because it makes sure all possessions and assets will go to those who have been specifically chosen to receive them

What kind of items should be filed and organized in a central location at your home (such as in a special drawer or file cabinet)? Choose all that apply.

statements of bills paid and to-be paid wills and health directives bank statements financial records tax information and forms

Consumers have rights related to the products they buy and the services they receive. Select all valid consumer rights listed below:

the right to be safe, and for all products and services to be safe the right to an explanation of all guarantees and warranty information about a product before purchasing the right to be informed about products and any potential hazards involved with the use of a product the right to be heard and to voice opinions about products and services the right to choose (and not be forced) to accept a certain company's product

Before buying an item you might want to return, make sure you know ________________.

the store's return policy

What is gross pay?

the total amount of earned income before any taxes or other deductions have been taken out

Choose all products listed that are known for causing hazardous conditions or accidents if used improperly.

toys with sharp edges or small parts flammable aerosol sprays three-wheeled ATV's (All-Terrain Vehicles) electric or propane space heaters skateboards

Direct deposit is one way to keep your personal finances in order. Direct deposit means ___________________________.

your payroll check is deposited into your bank account on your regularly scheduled payday