Personal Finance

Select all that are NOT a common feature of a financial institution.

- Access to investment products - Investment trading

Select all TRUE statements about investing.

- Investing is riskier than putting money in a savings account - Investing is best for long term goals like retirement.

Select all TRUE statements about checking cashing companies.

- They can make it easy to fall into a loan cycle that is hard to get out of. - They can take a percentage of your check on top of the fees.

Select all the reasons it is important to reconcile your bank statements.

- To avoid spending more than you have. - To detect any errors in your account.

Select all TRUE statements about savings accounts.

-Savings accounts can limit the number of withdrawals per month. -Savings accounts are best used to store money for longer goals

Which of the following is NOT a benefit of using a budget?

A budget can help you purchase anything you want.

What is the gig economy?

A flexible market that allows you to work short-term, independent jobs

What do you need to fill out your 1040?

All of the above

When you fill out a W-4 form, you must state whether you are:

All of the above

Which of the following do you NOT need to fill out your 1040?

All of the above

Which of the following is a benefit of using a budget?

All of the above

Which of the following should you consider when setting a budget?

All of the above

Which of the following statements is true about taxes?

All of the above

Which of the following is a way to track your spending?

All of these

Which of the following is NOT considered part of your benefits package available from your employer?

All of these are considered part of a benefits package.

Which choice or choices best describes the purpose of an emergency fund?

All of these are good reasons to have an emergency fund.

For most careers, which degree will most likely result in the highest lifetime earnings?

Bachelor's Degree

___________ are good places to look to find your current expenses when building your budget.

Bank and credit statements

What is one difference between Banks and Credit Unions?

Banks are for profit. Credit Unions are Non-profit.

In your budgeting process, when should you look at recurring expenses?

Before reviewing your wants

What is NOT a good way to prevent unnecessary spending?

Buy all of your wants at one time

Which type of account will typically have the highest interest rate?

Certificate of Deposit

When setting a budget, you can choose to make room for:

Charitable donations

Which type of account is typically the most liquid?

Checking account

You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

Compouding daily

Which type of financial institution typically has membership requirements?

Credit Union

This helps you prepare for unexpected expenses.

Emergency fund

A stock is an investment in ______________, and it earns _____________.

Equity, dividends

There is no relationship between the level of education received and lifetime earnings.

False

When considering a job offer, you should only consider your gross income.

False

What budgeting tip(s) would help you to stay on track financially?

Find a friend with similar goals and hold each other accountable

Which of the following should NOT be considered when setting a current budget?

Future income

The __________ is a flexible market that allows you to work short-term, independent jobs?

Gig economy

In budgeting which number should always be the largest?

Gross Income

The amount of money you make is called:

Gross Pay

Why is using a budget beneficial?

Helps reach short- and long-term financial goals

Which of the following is generally the most expensive category in a person's budget?

Housing

The W-2 form is a form that tells you ________.

How much you've earned and how much taxes you've paid in the last year

What does the W-2 form tell you?

How much you've earned and how much taxes you've paid in the last year

Which of the following is NOT a good way to track your spending?

In your head

Preparing a budget includes

Income, Expenses, Saving

Which of these is the correct way to calculate savings

Income-expenses=savings

How do financial institutions make most of their money?

Interest

What does the FDIC do for the bank's customers?

It insures to the bank's customers that if the bank runs out of money for any reason, their money will be guaranteed by the U.S. government.

How can you avoid spending more than what is in your bank account?

Keep your own records to compare with your financial institution's records.

What is the amount of money required to be stay in an account?

Minimum Balance

Examples of Fixed Expenses include:

Mortgage, loans, rent

If an expense can NOT be removed from your budget to save money, it is considered a _____.

Need

What should be considered when setting a budget?

Needs, wants, and savings

How does the government pay for roads, schools, and emergency services?

None of the above.

Which savings account will earn the most money?

One that compounds interest daily

Which savings account will earn you the least money?

One that earns simple interest monthly

Which of these fees would likely be the highest

Overdraft fee

Which of the following is NOT a possible tax or deduction that they may show up on your paycheck?

Overtime

What do you call the process of bringing your checkbook register into agreement with the bank statement?

Reconciliation

In addition to needs, what should you plan for first when creating a budget?

Recurring expenses

Which of the following expenses would be a good reason to spend money from an emergency fund?

Repair your laptop that you use for homework.

How can you ensure you don't go over your budget?

Round up your expense estimates to add a buffer

Generally, the more education you receive, the higher your lifetime earnings will be.

TRUE

What do taxes pay for?

Taxes pay for schools and government departments

What is net pay?

The amount of money you're paid after all taxes and deductions are taken out of your paycheck

Which of the following is NOT true about emergency funds?

They are used for anything listed on the budget.

What is NOT true about unexpected expenses?

They do not occur if you have a budget.

Which of the following is TRUE regarding unexpected expenses?

They should be planned for

What is the purpose of the W-4 form?

To inform your employer of how much federal income tax to withhold from your paychecks

A savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily.

True

Benefits packages do not include equipment and technology needed for you to perform your duties.

True

Gas

Variable Expense

Utilities

Variable Expenses

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

Net pay is not

Your gross pay plus any bonuses.

An emergency fund should NOT be used for...

a last-minute school trip

Where should you look to find your current expenses when building your budget?

bank and credit statements

A financial plan is called a

budget

A savings account typically offers more interest than what type of account?

checking account

Which type of bank acccount typically offers the least (if any) interest?

checking account

Which type of bank account is best for everyday transactions?

checking account

A bond is an investment in __________, and it earns ___________.

debt, interest

An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for...

emergency fund spending

Bank statements, credit statements, and records of cash expenses help you to estimate your ________.

expenses

A mutual fund is a type of investment that reduces risk by investing heavily in one market or industry.

false

A stock is a share of ownership in a company that pays interest like a savings account.

false

If you use the same bank as your employer, it can sometimes take up to 3 business days to gain access to your money.

false

When setting a budget, you should consider...

financial goals, current expenses, and income

OPEN RESPONSE: (10 POINTS). If you could only have one employee benefit from a full-time job, which would it be of the following: 1. Health care, 2. Paid vacation, 3. Disability insurance, or 4. Retirement savings? Give reasons why that one would be important to you. **At least 4 sentences for full credit. Each sentence will be graded on grammar and content.

health care

Savings accounts usually offer____ interest rates than checking accounts. It is ______ to access your money in a savings account than in a checking account

higher;harder

When you purchase a Certificate of Deposit, you are ______________ money from/to the bank

lending

Banks create money by taking in deposits, making _______, and charging _______.

loans, interest

Which one is a fixed (same amount, same time) payment?

mortgage

Which of the following statements is TRUE?

none of these

Unexpected expenses...

should be planned for.

Charitable donations, entertainment expenses, and financial goals are all examples of...

things to consider when creating a budget

The envelope method, notebook and pencil, and online software are all methods of ______.

tracking your spending

Another name for an overdraft fee is non-sufficient funds.

true

Outstaning checks are checks written by the account owner but have yet to be processed by the bank.

true

When you earn compound interest, you earn money on any interest earned up to that point from your principal.

true

When you purchase a Certificate of Deposit, you receive a higher interest rate because you have committed to keeping your money in the account for a specified period of time.

true

When you purchase a bond from a company, you are lending the company money for a set interest rate and a set period of time.

true

If an expense can be cut from your budget to save money, it is considered a ______.

want