Personal Finance Unit 3
Approximately how much does the budget shown in the bar graph above allocate to Agriculture for FY 2019?
$50 billion
Which of the following is a good estimate of the interest that you might pay using a credit card?
20%
Which of the following is NOT a taxed account and is actually tax-deferred?
401(k) plan
Which are the most common types of employer-sponsored retirement savings plans?
401(k), 403(b), and 457 plans
Keeping your credit utilization ratio below _____ helps keep your creditworthiness in good shape.
50%
What age must a person be to receive Medicare benefits provided by the Medicare tax?
65
Personal loans must be used to make what types of purchases?
??? Not none of these
What is a credit score?
A "snapshot" of a person's creditworthiness at one point in time
Match each of the following terms with the correct explanation. Tax credit
A dollar-to-dollar reduction in your actual tax bill
Match each of the following terms with the correct explanation. Estate tax
A federal tax on inheritance
Match each of the following terms with the correct explanation. W-2 form
A form shows the amount of taxes withheld from your paycheck for the year and is used to file your federal and state taxes
Which asset is a mortgage used to purchase?
A house
Match each of the following terms with the correct explanation. Inheritance tax
A state tax on inheritance
Taxes provide revenue for which of the following governments?
All of these
Getting into debt can deny God what?
An opportunity to provide for needs that He has the supernatural ability to provide or an opportunity to work in our lives as we learn to trust Him along the way
When tax time comes, it serves us well to do which of the following?
Be well-versed in the requirements and options
If you are taking out a student loan, and you plan to graduate with a well-paying degree in a good job market, you have a high probability of which of the following?
Being able to repay the debt with the job that it will afford
Romans 12:4-5 says, "For as in one body we have many members, and the members do not all have the same function, so we, though many, are one body in _________, and individually members one of another."
Christ
Which should be at the top of the list when considering different forms of community involvement?
Church
A payday loan or cash advance loan can be very expensive. Before you get one of these loans, what should you do?
Consider other ways to borrow.
What kind of credit is the most favorable to have on your credit report?
Credit backed by assets or equity, such as a house mortgage or car loan
Which of the following are payments made by a company to the owners of a company's stock or bond?
Dividends
When choosing an organization to volunteer for, which of the following would be a good idea to do first?
Do some research on charities or volunteer groups that match your skills and interests
After taxes are collected, who determines how most of the money is spent?
Elected officials
With which of the following do taxes help?
Ensuring society runs smoothly and that we are safe
The police are NOT responsible for which of the following?
Ensuring teenagers wake up for school
Choose the three tax revenue categories that are allocated less than 5% of the budget. Please do not guess, as incorrect answers are penalized for this question type.
Excise taxes Unemployment taxes Customs and duties
What federal department is responsible for enforcing laws related to consumer credit?
Federal Trade Commission
TSP
For people employed by the federal government
IRA
For people who want to put their money into a tax-deferred account at a bank or through their employer
401(k)
For people who work for public or private for-profit companies
457
For people who work for state or local governments, schools, and universities
403(b)
For people who work for tax exempt or non-profit organizations
Which of the following is NOT a good way to research an organization?
Go to the organization's location after dark and peer into the windows
The Bible tells us that debt may violate two biblical principles: 1. Don't presume upon the future. 2. ____ is our provider
God
We are stewards of our money, but who owns it all?
God
Taxes fund programs and services that benefit individual citizens, including all of the following except:
Golf lessons
_________ wages are the amount you are paid for your work before any taxes or benefits are taken out of your paycheck. You will not receive this amount in your bank account.
Gross
Which of the following would you see on a paystub?
Gross monthly wages
If you have any question about the best way to file your taxes, which would be the best option?
Hire a tax professional, such as an accountant
A person's gross pay is subject to which of the following (i.e., which of the following will be taken out of gross pay before it is deposited)?
Income taxes and other taxes
Based on the pie chart of Federal Tax Revenue Collections pictured here, what is the largest category that is collected?
Individual income tax and tax withholdings
What is the credit utilization ratio?
It is a ratio of the amount of debt you owe to the amount of debt for which you have been approved.
In a debt situation, how does compounding of interest work?
It works against you.
Taxes are collected by which of the following agencies?
Local, state, and federal governments
Paying taxes is a biblical principle. In what book of the Bible does Jesus tell us to render to Caesar what is Caesar's?
Matthew
Do creditors always report activity on your account and all new accounts to the three credit reporting bureaus?
No, some of your credit history may be missing from one or all three.
All of the following people should receive W-2 forms EXCEPT:
Serena, who is a freelance wedding photographer
What are some types of taxes that you may pay in your lifetime? Choose all five answers that are correct. Please do not guess, as incorrect answers are penalized for this question type.
Social Security taxes Property taxes Income taxes Sales taxes Medicare taxes
Which of the following is true about deductions taken out of a person's paycheck?
Some are used to pay for government services, Social Security, and other societal needs.
Which of the following are loans offered to college students and their parents?
Student loans
_______ provide revenue for federal, local, and state governments to fund essential services, such as defense, highways, police, and a justice system.
Taxes
Which of the following does the Bible say about spending time with others?
That we need each other and are better together
Which part of the pie is arguably the most important to study because it can be the hardest for people?
The "Owe" section
On a paystub, what is net pay?
The amount you are paid after all taxes and benefits have been paid
What should you consider first when thinking about financing a purchase?
The biblical principles that guide your financial decision making
Individualism isn't part of God's design. This is one of the reasons He gave us the gift of what?
The church
What is an annual percentage rate (APR)?
The interest rate that credit card companies and other loan companies charge in interest on unpaid balances
What does the Electronic Fund Transfer Act regulate?
The rules and practices that deal with electronic transfers of money from one account to another
In education, most employees, including teachers, administrators, custodial staff, and bus drivers, are paid from money that is collected from where?
The state and local level
Being with others is part of God's design. Which of the following is true about His intention of spending time with one another?
There are many ways, including church, in our community to spend time together.
How are cashback or points rewards determined for credit cards?
They are based on your spending as a reward for your activity.
What does a bank do when they lend someone money to purchase a home?
They look at the individual's credit score.
In his video, what does Mr. Ron Blue point out as the most important thing to remember about credit cards?
To plan to pay off the balance each and every month
Which of the following is NOT a good reason to volunteer in your community?
To take pictures to post on Instagram
Which of the following is NOT found on a W-2?
Total salary bonus
What are the two types of IRAs (Individual Retirement Accounts)?
Traditional and Roth
What are examples of goods and services that are purchased by the government?
Transportation and defense
A ___ tax form shows the amount of taxes withheld from your paycheck for the year and is used to file your federal and state taxes.
W-2
Which form tells employers how much income tax to withhold from their employees' pay?
W-4
When we take on debt, what have we determined about our future?
We have determined how our future will go because we know we will owe money.
When considering the amount you currently owe, which of the following questions is NOT asked to help come up with your credit score?
Where do you spend the most money?
Do credit cards provide a grace period with no interest?
Yes - this period is generally 25 to 30 days.
When you make money by earning interest and investing, what must happen?
You have to pay any taxes on the financial rewards you gain.
Which of the following do most communities have that is funded by tax revenue?
a library
When should we be grateful for paying taxes?
always
As part of maintaining the safety of the community, most law enforcement departments include employees who deal with ________ control, which includes invasive wild animals and stray pets.
animal
The ______ is a yearly fee that some credit card companies charge simply for the privilege of having a credit card account with them.
annual fee
I am moving into my college dorm room and want to get a new TV. Myparents won't pay for it. I want to put it on my credit card and go into debt tobuy it.
bad debt
There are some instances when accruing debt is necessary, and it can actually be ______ if done wisely and with caution.
beneficial
Proverbs 22:7 says the ____ is a slave to the _____
borrower lender
Proverbs 22:7 tells us, "The rich rules over the poor, and the ____ is the slave of the ____
borrower lender
A department store-sponsored card offers special incentives to shop with the store, but it also carries higher interest rates. These cards _______________________.
cannot be used anywhere you want since they are sponsored by a specific store
Although using credit is better in some cases, paying daily expenses with ______ is usually a better idea when you are sticking to a budget.
cash or check
A ____________ is defined as a group of people living in the same place or having a particular characteristic in common.
community
People in the _____ get paid from tax revenue and fundraising on the part of the organization they serve.
community
A tax _____ is a dollar-to-dollar reduction in your actual tax bill.
credit
A tax ______ is a dollar-to-dollar reduction in your actual tax bill.
credit
Too many applications for or openings of new accounts may make credit companies wary and affect your _____ score
credit
If you have borrowed money, you owe a ____ to a lender
debt
While compounding is a tremendous tool for building wealth, it can also be a tremendous anchor for trapping a person inside of
debt
______ is simply money that is owed to someone else.
debt
Getting into debt can ________ God an opportunity to provide for our needs.
deny
When you do not pay off a credit card in full each month, you may potentially pay hundreds or thousands of dollars in ______________ fees.
financing (MCQ only)
Being a part of a community is life-______ and essential to following Christ.
giving
I am a student who wants to major in economics and get a job as a teacherafter school. I have been admitted to a school that costs $40,000 per year and will
good debt
I'm moving to a new city and want to buy a house. I want to buy a $200,000house and put $50,000 down, meaning I will be $150,000 in debt. The house is in agood part of town with historically strong real estate values.
good debt
God owns it all, and He has told us to pay to the __________ what is theirs.
government
People pay many different types of taxes, which allows the _____ to provide public goods and services.
government
Taxes shift resources from private individuals and businesses to the __________ in order to pay for public goods and services, regulate the economy, and redistribute income.
government
Depending on the lender, student loans may or may not accrue _____ over the period they are deferred.
interest
Government _____ payments are paid by the government for interest on borrowed money.
interest
Court systems include _______ (who can be elected or appointed) and court officials, such as clerks, bailiffs, security guards, and other paid staff.
judges
A tax deduction is a dollar amount that the IRS allows you to subtract from your adjusted gross income, or AGI, making your taxable income _________________.
lower
______ pay is the amount of money you actually get to take home, otherwise known as "take-home pay."
net
Romans 13:7 says, "Pay to all what is ______ to them: taxes to whom taxes are owed, revenue to whom revenue is owed, respect to whom respect is owed, honor to whom honor is owed."
owed
Every community needs a _______ or sheriff's department that is responsible for keeping order and enforcing laws of the locality.
police
Proverbs 21:5 says, "The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to _______."
poverty
When financing a purchase, do not go for what seems to be the easiest route. Instead, go for a _____ and _____ solution to your financial need.
reasonable, logical
Most people participate in tax-deferred savings and investments accounts for ______________________.
retirement and travel
Taxes are a opportunity.
stewardship
_____ wages are the wages that are considered pay for work and not benefits otherwise provided, so the taxable income is equal to or less than a person's gross pay, depending on any exempt benefits that are not taxed.
taxable
As an employee, the information on your W-2 is extremely important when preparing your tax return. Your W-2 reports the amount of federal, state and other ____ withheld from your paycheck.
taxes
Many ________ municipalities have a full-time, paid staff that runs the fire and rescue departments.
urban
God clearly instructs us to pay our taxes _____________.
when they are due
