Money Matter Final
What's a better question to ask instead of, "Where do I want to go to college?"
"What do I want to do for a career?"
It takes the average person_________ to pay off their student loan debt.
20 years
A great way to make an impression after an interview is to send a handwritten thank-you note to your interviewer within ______________after your interview.
48 hours
An extreme result of free-market capitalism without government regulation is referred to as . . .
A monopoly
Comprehensive coverage pays for loss or damage to your car caused by_________________.
Anything other than a collision
The dealine for filing your income tax return usually falls on __________________.
April 15
The Proximity Principle says: In order to do what you want to do, you need to be_____________ people who are doing it and in ____________ where it's happening
Around; places
A two-year degree with specialized training, a flexible schedule, and lower educational costs is called a(n) _______________________.
Associate degree
Always keep your filed taxes for at least three years in case the IRS decides to _________ your tax return.
Audit
__________________ is an example of SOFT skill.
Being a team player
What is The Fifth Foundation?
Build wealth and give.
Overdraft protection sounds like a good idea . . .
But you have to pay back the deposited money with interest
The only time it's okay to borrow money if you can't pay 100% in cash is . . .
Buying a home (mortgage)
Which of these is an example of a bold first impression when applying for a job?
Calling the hiring manager and introducing yourself
Which factor of production refers to the man-made objects like tools, machinery, buildings, and equipment needed for production?
Capital
The series of steps it takes to produce a product is called the . . .
Chain of production
To make living with a roommate more peaceful while you're saving money . . .
Communicate, be respectful, and be considerate
Investing your money earns you more money because of . . .
Compound growth
The tax on the purchase of goods or services is called
Consumption tax
Which type of loan is not secured by a government entity and usually has the best rate and term?
Conventional loan
The amount of money the insurance company agrees to pay for an incident is called_____________.
Coverage
Ask yourself, "Do I need this ____________for my_____________ ?" before you start applying to schools
Degree; career
People who rely on you financially are called your_____________.
Dependents
Economic interdependence . . .
Describes how all the countries of the world handle their money
Which of the following is NOT a way to make yourself a valuable employee in the future?
Determine how much income you should make
The first step in finding your dream job is __________________.
Discovering your talents, passions, and values
This type of home insurance covers the structure of your home.
Dwelling insurance
What is NOT a benefit of working while in school?
Earn a grant
There are two general types of taxes. Taxes on the money you ______________ and taxes on the money you ________________.
Earn; spend
Inflation, deflation, the rate of economic growth, price levels, national income, changes in employment rates, and GDP are all called . . .
Economic indicators
Withholdings and deductions are . . .
Expenses that are taken out of your paycheck
Dropping out of college means you don't have to pay your student loans.
False
Government deficit spending is a good thing because it lowers the amount of taxes that need to be collected.
False
If you don't know the company dress code, it's best to dress very casual for an interview
False
If you're young and healthy, medical insurance is not as necessary
False
It is impossible to get a mortgage without a credit score.
False
It's okay to borrow money from your retirement account, but don't borrow money to invest in it
False
It's okay to not understand all the specifics of your financial aid before accepting the money
False
Overdrafting your account is a sign of diligence and responsibility
False
Student loans are a type of "good" debt
False
Taking an entry-level position makes it difficult to advance in a career you want to explore.
False
When you invest, your goal is to earn a negative rate of return on investment
False
You can depend on the people in power to either make you wealthy or make you poor
False
You need long-term care insurance before you turn 60 years old.
False
You should buy a home, even if you cannot afford it just yet. Renting is a waste of money
False
You should wait to be generous until you have money to give.
False
Your college degree will only cost you the tuition, nothing more.
False
Your emergency fund should go in your checking account, NOT a money market account
False
Your first job will likely be your dream job.
False
Every American who earns an income must file a ___________ each year.
Federal tax return
When someone says they need to file their taxes, they're talking about filling out a _______________.
Federal tax return
What type of interest rate is locked in and won't change for the life of the loan?
Fixed-rate
What is the main IRS form that most Americans use to file their taxes?
Form 1040
The U.S. is mostly a . . .
Free market
___________ is the cure for _____________.
Generosity; selfishness
Getting good grades and scoring well on college entrance exams give you a better chance of ___________________.
Getting a scholarship
You can build a legacy you'll be proud of by . . .
Giving your time and money to others
Medicare and Medicaid are examples of.....
Government programs for public health insurance
You can fund your education by finding the right mix of _______________ , ________________, and _____________________ .
Grants; scholarships; work
___________________skills are things you learn in school or receive special training on.
Hard
Homeowner's insurance costs are ________ in states that are more susceptible to hurricanes, floods or tornadoes.
Higher
Your resume should NOT include __________________.
How much money you want to make
What does the Form W-4 estimate?
How much tax you'll owe based on your personal situation
Many high schoolers get so caught up in the idea of the college experience that they don't think critically about . . .
How their college choice will affect their financial future
When donating money, you should always . . .
Identify a cause that matters to you and research the charity thoroughly
The purpose of life insurance is to replace your _______________when you die.
Income
Be aware of any you might receive, but don't bank on it as a key part of your retirement plan.
Inheritance
Your _________ has all the information you'd need in case of an accident.
Insurance card
Most students don't consider that they'll end up paying far more than the original amount they borrowed on their student loans because of ________________.
Interest rates
Never _____________ something you don't ________________.
Invest in; understand
When you invest in a mutual fund, you are contributing to a pool of money that will be . . .
Invested in a mix of stocks, bonds and money market accounts
A leasing contract . . .
Is a legal document that allows the renter (tenant) to use the property for a period of time
When riding the highs and lows of the stock market, remember . . .
It will level out, so stick with it!
What is scarcity?
It's something that occurs when there's greater demand for something than what's available
What is specialization?
It's when a country focuses its efforts on producing a limited variety of goods or services.
What is the key to failure?
Learning from it
Being smart about how you spend your free time is important when building your career. Which of the following is a great way to spend your free time?
Learning new things
It's wise to have _____________ because even if you're a great driver, there are plenty of people who aren't.
Liability insurance
Insurance companies look at ____________________ to determine the cost of your premium.
Life expectancy charts, your weight, your age, your hobbies and whether you smoke
_________________ will provide money to replace lost income for years--even up to retirement
Long-term disability
If you're unable to live in your home while it's being repaired, ____________coverage will cover those additional living expenses.
Loss of use
Getting good grades, driving safely, and driving an older car are examples of ways you can. . .
Lower your auto insurance costs
The typical student loan payment is between $200 and $300 per _________________.
Month
Consumption tax pays for things everyone gets to enjoy, like......
Parks, libraries, and zoos
Life insurance guarantees your loved ones get a certain amount of money when you _______________.
Pass away
Renting out property or selling content on a blog are examples of __________________.
Passive income
Part of making a plan to ______________ involves searching for scholarships, saving, and talking with your family about what kind of financial help you'll get.
Pay cash for college
What is The Fourth Foundation?
Pay cash for college.
In return for paying the insurance company a fee, they will....
Pay for certain expenses for damages
Scholarships are a great way to fund your education because you don't have to . . .
Pay them back
What type of insurance pays for the treatment of injuries and losses to the driver and passengers?
Personal Injury Protection
You can produce________________ by buying and selling stocks, bonds, mutual funds, an real estate.
Portfolio/investment income
Be careful what you_________________ , since most schools keep an eye out for good __________ .
Post on social media; behavior
What information should a lease contain?
Property address, rental term, security deposit terms, and pet fees
The three components of compound growth are money, time and .
Rate of return
The National Study of Millionaires revealed that millionaires are more likely to . . .
Read one nonfiction book each month
FAFSA is the federal application required to . . .
Receive financial aid
Only a few states have inheritance tax, which....
Requires you to pay tax on an asset you receive when someone passes away
___________________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.
Retirement planning
Roth IRA, 401(k), 403(b), 457, and Simplified Employee Pension are all examples of _________________________ .
Retirement plans
Diversification reduces your _________________ by using a mix of investment types in your portfolio.
Risk
Insurance helps you transfer the _____________ from your bank account to the insurance company.
Risk
A fixed, annual rate of pay that doesn't change by working more or fewer hours is called _______________.
Salary
When you buy clothes or check out at the grocery store, you will pay ____________.
Sales Tax
No matter what path you choose to take after high school, the money principles stay the same. What are they?
Save, budget, stay out of debt, live on less than you make, and be generous.
An entrepreneur is someone who_________________ .
Starts and runs their own business
A security that represents part ownership of a company is called a(n) _____________________.
Stock
To stay extra focused on your debt-free degree goal, you will need to avoid . . .
Student loans
The first decision you need to make in order to avoid going into debt with student loans is . . .
Take debt off the table
Net income is also called your________________.
Take-home pay
Learning about the costs of living before you need to cover them and creating good money habits early are both examples of _________________.
Taking personal responsibility
Your_________ , _________ ,__________ and make you who you are.
Talents; passions; values
What is the total tax a person or business has to pay called?
Tax liability
What is a deductible?
The amount you have to pay before the insurance company will make a payment.
What does cost of living refer to?
The average cost of the basic goods and services needed to maintain a certain standard of living
What does it mean to be blacklisted by a bank?
The bank doesn't allow you to open an account because you handled money poorly in the past and couldn't pass their financial background check.
Whether a country is developed or developing depends on . . .
The country's per capita income, standard of living, technology, education, personal freedom and poverty level
The cap on the total amount of benefits you can get from your insurance company is called ________________.
The lifetime limit
What does "bull and bear" reference?
The stock market
Balancing your checking account is a lot like working on your budget because . . .
They both get easier and build money confidence the more you do them
Mutual funds are less risky and can outperform the stock market because . . .
They invest in several companies at once.
Why might someone choose to diversify their investments?
To balance high-risk investments with more steady and predictable ones.
______________________ typically take(s) less than two years to complete, teach you the skills you need for that career, and is/are often tied to that region's employment needs.
Trade and vocational schools
. Job shadowing is a great way to gain experience in a career field.
True
A debit card linked with your checking account is a good option for regular spending
True
Before you invest, you should make sure a mutual fund has done well for 5-10 years
True
Credit Unions differ from retail banks in that they typically require membership based on specific criteria.
True
Employers consider soft skills as important as hard skills.
True
Equity is the difference between what you still owe on your home and what it is worth
True
Getting a big tax refund is not necessarily a good thing.
True
Giving to a non profit organization can help lower your taxable income.
True
If you see a charge you don't recognize, you should report it to your bank immediately
True
If you work and earn money, you will have to pay taxes.
True
In-state college tuition is almost always a cheaper option than out-of-state colleges.
True
It's important to read your leasing contract, because once you sign it, is enforceable by lawIt's important to read your leasing contract, because once you sign it, is enforceable by law
True
Low supply and high demand increase the price of an item
True
Many employers will research job candidates' social media posts.
True
Many service industries, including financial services, auto repair, electrical work, plumbing and health care, don't require four-year degrees
True
Mentors are people who can guide, encourage, and hold you accountable as you make the climb to your dream job.
True
People who are struggling with money often turn to alternative financial services like payday loans, but these services actually end up causing them to lose money.
True
Private student loans typically have a higher interest rate than federal student loans
True
Renter's insurance will cover you and your belongings if there is ever a fire, theft, or vandalism.
True
Renting is a great option for many people
True
Since federal funding is often awarded on a first-come, first-served basis, you'll be more likely to get financial help by filling out your FAFSA as soon as possible.
True
Those who properly fill out their Form W-4 shouldn't have too much or too little taxes withheld.
True
Usually, the more liquid an asset is (like cash in the bank), the less return you can expect
True
When using a Roth plan, you invest your money after paying taxes, and the investment grows tax-free.
True
When you're retired, you'll still have to pay taxes
True
You should always do research about the company you're applying for a job at or interviewing with.
True
You should figure out what you're passionate about before going to school for a specific field of work
True
You can save thousands of dollars by spending the ____________ first at a(n) ____________ .
Two years; local community college
To decide if you're passionate about something, consider . . .
Volunteering in that field first
Property tax, inheritance tax, estate tax, and gift tax are all examples of _________________.
Wealth tax
Most employers care more that you're educated in your field than they care about . . .
What college you went to
Equilibrium is . . .
When the market supply and demand match each other, resulting in price stability
Wealth taxes are often dependent on ____________________, so it's a good idea to understand the tax rules ________________
Where you live; in your state
When writing your purpose statement, what should you think about?
Who you most want to help and the problem you want to solve
Don't get sucked into the __________scam.
Whole life insurance
With certificates of deposit (CDs), you have to pay a penalty for ___________________.
Withdrawing your money early
A great way to earn extra money while also sharpening your time-management skills is to . . .
Work a part-time job
Through the Affordable Care Act, you can stay on your parents' health insurance until.....
You turn 26 years old
The best way to make the contribution you were born to make is by doing work_____________________.
You're passionate about
A high-deductible health plan with lower monthly premiums is a good option for______________.
Young, healthy people
What is the point where your greatest talents, passions, and values intersect?
Your sweet spot
When you make ___________ money, you will pay ____________ in taxes.
more; more
Which of the following is NOT a characteristic of an entrepreneur?
one dimensional
For entrepreneurs, taking ______________ and growing a business go hand in hand.
risks
What is an example of putting the Proximity Principle into practice?
volunteering
Which of the following is NOT a key quality of a good mentor?
wealthy
The very best investment you can make is in .
yourself
