Finacne for life final review

Marcus is a high school senior in Atlanta. He plays baseball and is president of the mock trial club. He would like to major in political science in college and become a lawyer. Which of these scholarships would he be qualified to apply for?

American Bar Association law scholarship

Which of these places would be a good place to look for a scholarship?

College website

Tarik works in a restaurant and gets paid in cash. He's used to dealing in cash, but he needs a system to help him physically divide his cash each month. What money management strategy should Tarik use?

Envelope Method

Which type of financial aid is considered free money?

Grants

Which of these things would be considered an advantage of gig employment?

Having a flexible schedule

Which of these factors may make you more competitive in the job market?

Having a higher education degree

Alejandro realized that he forgot his wallet when he was about to pay at a store. He only has his smartphone with him. How can he make a payment with money from his checking account?

He can use a mobile payment app with his phone.

Meri's roof was recently damaged by a hurricane. Luckily, she has homeowners insurance, and files a claim that gets approved. What will this insurance help her do?

Her homeowners insurance will help her pay thecosts of her roof repair.

Emery applies for a loan online to help cover living costs while in college. Later, she notices her payments aren't impacting the balance much. Looking closer, she finds extra fees in the agreement. Which type of predatory loan offer did Emery experience?

Hidden fees

Which of the following is considered part of your workplace benefits?

Life insurance

Sawyer just got his learner's permit and can't wait to buy his first car. He received a large sum of money for his birthday and put it in an account to help it grow. He opened an account that required a large initial deposit, but that pays a high interest rate and allows him easy access to his money. What kind of account did Sawyer open?

Money Market Account (MMA)

How is money divided using the 50-30-20 Method?

Needs, wants, savings

What is the main purpose of having auto insurance?

To protect yourself against unintentional costs andfinancial losses

Health insurance, paid time off, disability, retirement plans, and tuition reimbursement are allconsidered

Workplace benefits

What is the main benefit of taking out a federal student loan instead of a private loan?

You may qualify for loan forgiveness after you

Why do financial institutions offer you higher interest rates for Certificates of Deposit (CDs)?

You must keep your money in the account for a setamount of time.

Using your mobile banking app, you can....

deposit checks

Jasmine just received her paycheck. To manage her money, she categorizes spending by needs,wants, and savings and debt. What money management strategy is Jasmine following?

50-30-20 rule

What is the benefit of a savings account?

A savings account earns interest.

Rosa is getting ready to fill out the FAFSA. Which of these documents will she need to fill it out?

Individual tax returns

Your favorite cousin Briar's birthday is coming up, and you'd like to gift her some money from yourchecking account. What is the benefit of gifting money via check?

It is safer because you can trace the transaction.

Louie just opened his first savings account. What is one way that it can it help him manage hismoney?

It will keep his money safe.

Alida works from home.Which item is a want for her?

Streaming service

When do you need to apply for the Free Application for Federal Student Aid (FAFSA)?

The year before college and every year you attend

Dominic has four unexpected expenses, including a broken TV, increased insurance costs, a brokendown car, and a hole in a shoe. Which of these expenses would be considered an emergency?

car repairs

To deposit a check using a mobile banking app, you have to ...

upload pictures of your signed check

Overdraft protection helps you cover a purchase in your checking account

when you don't have enough funds

What is the benefit of a checking account?

It helps you spend money without carrying cash.

Which of the following best describes a loan?

A borrower promises to repay money from a lender

Anthony caused a minor accident when he hit another car. Anthony's insurance company said that he needed to pay $500 before they could pay the claim. What does the $500 most likely refer to in this insurance policy?

His auto insurance deductible

Elliott renovates his home using a loan that requires him to sign over the title to his car if he doesn't pay as promised. What type of loan does Elliott have?

Secured loan

Which best describes the difference between secured and unsecured loans?

Secured loans require collateral, while unsecuredloans do not

Camilla just opened a new checking account. How can it help her better manage her money?

She can check her transaction history easily.

Which list describes needs?

Shelter, warmth, food

How do loan terms affect the cost of credit?

Shorter loan terms have higher monthly paymentsand lower overall interest

What would happen if your car were stolen and you didn't have auto insurance?

You would still have to pay off your car loan in full.

Which of the following items describe features of a checking account?

debit card

Lilly wants to save money for unexpected situations like emergencies. Which savings feature would benefit her the most?

easy access to her money

Margo wants to purchase a new car. She doesn't have enough in savings to cover the cost. She decides to look into loans from her bank. How can taking out a loan help Margo with her car purchase?

It can help by spreading out the expense over time

Aisha needs a loan to finance her latest startup. She wants a loan with the lowest overall interest costs. She's considering a 3-year loan with an 8% fixed interest rate or a 5-year loan with a 6% fixed interest rate. Why would Aisha pick the 3-year loan?

It has a lower total cost.

Kai wants to get a gig job, but he does not have a car, a bike, or another form of transportation.Which of these jobs would be a good fit for Kai?

Neighborhood dog walker

A lender offers Frank a high-interest loan based on how much he makes at his job. He'll have to pay it back quickly too, within the next month. Which type of predatory loan offer did Frank experience?

Payday loan

Which job would be considered gig work?

Pet sitter

What type of car insurance would you need to use if you damaged part of your neighbor's house in a car accident?

Property damage liability

Keira is new to earning money and saving. She doesn't have a lot of money to open an account.Which savings option would be best for her?

Savings Account

Zack is 25, lives alone in an apartment, and works as a freelance developer. Why should he consider purchasing short-term disability insurance?

So he will have monetary protection in case he isunable to work due to illness or injury