Personal Finance Unit 10

How much more is the average cost of utilities for a home when compared to an apartment?

$160

Which of the following items should a gig worker budget for that a traditional employee usually does not? A. Groceries and Rent B. Taxes and Health Insurance C. Utilities and Saving D. Emergency Fund and Transportation

B

Which of the following statements about shopping for produce is TRUE? A. Pre-cut fruits and vegetables are cheaper than buying them whole B. Buying whole produce is generally cheaper and lasts longer than pre-cut and packaged produce C. Packaged produce will last longer than whole produce D. Buying produce at the entrance of the store will prevent you from buying junk food

B

How much money should you put toward your home's downpayment? A. Your entire emergency fund B. 3 times your monthly expenses C. 20% of the price of the home D. 5 years' worth of payments

C

Which grocery item has the lowest unit price? A. 10 oranges for $10 B. 12 oranges for $20 C. 15 oranges for $12 D. 20 oranges for $18

C

What are some tips you can use to avoid waste and overspending at the grocery store? A. Eat the same meals each week so you only have to buy the same 10 items; use a larger cart B. Only shop for the items at eye level; take your time shopping C. Bring a friend who can help suggest more items you might need; only purchase items on the back wall D. Listen to upbeat music to keep you focused to shop quicker; use a smaller cart

D

Which of the following is a recurring expense? A. Rent B. A large car repair bill C. A concert ticket D. Daily Starbucks latte

D

What type of expense? : Occur throughout the month and are not as predictable as fixed expenses

Recurring

What is the typical security deposit amount owed when you sign a new lease agreement?

1-2 months rent

How is it possible someone could pay their mortgage monthly for years without reducing their principal by very much? A. The real estate market changed substantially since they took out the mortgage B. The house's value increased so much that it's worth more than they agreed to pay C. In early years, most of the payments go toward interest D. The bank is pocketing that money instead of paying toward the loan

C

Young adults are more often choosing to rent instead of buying a home because... A. Monthly rent payments are always lower than monthly mortgage payments B. Landlords give young people better rates on apartments than older people can qualify for C. They're graduating with a lot of student debt they must pay off, so it takes longer to save a down payment D. Renting is a better long-term investment strategy

C

Buying a home achieves which two financial goals at the same time? A. Providing a place to live, investing for the future B. Providing a place to live, paying for your college expenses C. Providing a place to live, bringing you great happiness D. Providing a place to live, paying off your consumer debt

A

What is a reasonable thing you can do to avoid buying items that catch your eye when going through the aisles? A. Make a list beforehand and commit to only purchasing the items on the list B. Purchase all of your groceries online and avoid going into stores C. Ask an employee to escort you to each item that you need every time you go to the grocery store D. Avoid walking through the aisles by taking a friend along and having them do your shopping for you

A

Which of the following scenarios shows someone losing purchasing power due to inflation? A. Aafia gets a 2.5% raise and inflation increase prices by 3% B. Artie gets a 3% raise and inflation increases prices by 2% C. Joanna gets a 4.5% raise and inflation increases prices by 4.5% D. Gyasi gets a 5% raise and inflation increases prices by 3.5%

A

Why are items like candy, magazines, and gum placed strategically by the cash register? A. By the time shoppers get to the register, they have experienced decision fatigue and are more likely to give in to small purchases that are not necessary B. All of these items are usually discounted for shoppers and stores want to remind shoppers of these deals before they pay C. The cashiers pressure shoppers into buying these small items D. These are the only items that fit in the small spaces near the register

A

All of the following are ways you can save money at the grocery store EXCEPT... A. Buying whole produce instead of pre-cut B. Pay someone to do your grocery shopping so you don't make unnecessary purchases C. Avoid impulse purchases made at the register like magazines or candy D. Make a list and only purchase items on it

B

Millennials are buying fewer homes than in previous generations for each of these reasons EXCEPT... A. They have to self-fund retirement to a greater extent B/ They find apartments to be trendier and more fun C. They are paying down large student loans instead D. They prefer to spend money on travel experiences rather than homeownership.

B

What does it mean to "pay yourself first?" A. Set aside some fun money in each month's budget so you can enjoy yourself B. Auto-deposit a set amount of money into savings after each paycheck so that you don't spend all your income C. Be self-employed, so that you don't have a boss and get to keep all income from your business for yourself D. Do all of your budgeting at the beginning of the month, rather than at the end

B

What is the purpose of an apartment lease? A. It provides the budget you'll use for all of your household expenses B.It outlines the amount of rent you'll pay, when it is due, and key obligations and rights of living in the property C. It provides insurance if any guests to your apartment are injured on the property D. It makes it illegal for your landlord to evict you from the property

B

When creating a budget, which list below portrays expense categories in the most responsible order? A. All of your needs, high priority wants, low priority wants, savings B. All of your needs, savings, high priority wants, low priority wants C. All of your needs, high priority wants, savings, low priority wants D. Savings, high priority wants, low priority wants, all of your needs

B

When you are a freelancer, who manages the time and location that work is done? A. A manager at the company that you're contracted to sets your hours and work location B. You set your own hours and work location C. The town that you work in has regulations about when and where you can work D. The size of the contract you sign with the company that hires you determines the time and location

B

Which of the following costs would increase if you had a longer commute to work or school? A. Car payments B. Vehicle registration fees C. Fuel and maintenance D. Parking fees

C

Which of the following situations is an example of net pay? A. Brian multiplies his hourly wage by his total hours worked B. Chrissy multiplies their hourly wage by their total hours worked and subtracts taxes C. Timothy multiplies his hourly wage by his total hours worked then subtracts taxes and deductions D. Helene multiplies her hourly wage by her total hours worked then subtracts taxes, deductions, and budgeted needs

C

Why is it important for gig workers to have a larger than usual emergency fund? A. Gig workers have a larger than usual grocery budget due to working more B. Gig workers are more likely to live in a place with higher rent C. Gig work can be irregular so it's important to have money saved for times of low employment D. Gig work always is high risk, so you might need to pay unanticipated hospital bills

C

Why is it important to create a budget? A. A budget is a necessary to qualify for loans and credit cards B. A budget makes filing your taxes faster and simpler C. A budget will help you save money and prioritize your spending D. A budget will guarantee you have enough money saved for college so you won't need loans

C

All of the following are potential benefits of NOT owning a car EXCEPT: A. Less stress when commuting B. Opportunities for exercise C. Reduced carbon footprint D. Shorter commuting time

D

All of the following are types of utilities that you may have to budget for EXCEPT A. Electric B. Water/Sewer C. Gas D. Rent

D

Djamila is using the envelope budgeting method. She wants to go out with friends to eat and opens her Restaurant envelope to find that it only has $5 left in it. What budgeting advice would you give to her? A. Borrow money from another category that will likely have a surplus this month B. Use her credit card and put extra money into the credit card envelope next month C. Dip into her emergency fund to cover the shortfall D. Suggest other options to her friends that don't involve going out to eat

D

Which scenario below is an example of a person whose car payment is probably too high? A. Chester pays $390 per month for his car and saves $500 per month B. Amal pays $430 per month for her car and saves $500 per month C. Logan pays $250 per month for his car and saves $250 per month D. Isra pays $400 per month for her car and saves $350 per month

D

You should meet each of these 3 requirements before you consider buying a home: (Choose three) A. You qualify for good mortgage terms B. You have enough saved for a down payment AND an emergency fund C. You plan to stay in the home for 5 or more years D. You are married and have children

A, B, C

What type of expense? : Only happen once or a couple times a year

Non-recurring

What is the gig economy?

Working with short-term contracts for freelance work instead of a permanent job

Which bill usually accounts for the largest part of your monthly utility bill?

electricity

What type of expense? : Standard expenses that happen every month, on a certain day, and for a certain amount

fixed

The video refers to buying a new car as a financial triple threat. List the three ways that new cars can cost you.

interest, maintenance, depreciation

What does each number in the 50-30-20 rule represent?

needs, wants, savings

When you are creating a budget, should you use your gross pay or net pay?

net pay

What type of expense? : Unpredictable expenses (often emergencies)

whammy