LUOA Personal Finance Module 1

If this person is paying $140 a month for a car loan, based on the budget how much is allocated for maintenance?

$20

To help you make sure reoccurring bills are paid on time what kind of bills can usually be set up to draft off of your bank account so they will be paid every month on time? Choose all that apply.

-Credit card bills -Cable services monthly charges -car loan -cell phone bills -utility bills like electricity -Insurance premiums -loans and mortgages

Choose all jobs that do not require a college education

-baker -cashier -plumber -pet groomer -taxi driver

For keeping up with your money in your bank, what is the best way to organize your accounts?

-consolidate your accounts with separate allocations going to checking and savings

Choose all of the listed ideas that are helpful for making a large purchase.

-wait for sales or rebates -ignore peer pressure to overspend or buy something you don't need -save ahead so lack of money will not be a pressure to buy on impulse and incur debt -make a spending plan outlining purchasing options -use the best alternative to pay without adding any fees or high interest

As technology changes, job opportunities change. In the 1960's and 1970's there were television repair shops in every town and city. Nowadays, there are few or none of these shops around now. Which of the following factors could have led to this present situation?

All other answers are valid reasons.

If you are not satisfied with the service you receive from the same merchant over and over again, you can always report them to the...

Better Business Bureau

Stephen wanted to buy a used car when he started his new job. Which of the following ideas would NOT help him make the best decision?

Consider only cars that were his favorite color.

Different geographic locations offer different employment opportunities. Match each job to a suitable geographic location.

Deep sea fisherman: gulf of mexico or atlantic ocean Coal miner: mountains of Virginia or West Virginia Park Ranger: Yellowstone or Yosemite National Park Taxi Driver: metropolitan or urban area White water rafting guide: Nolichicky river or colorado river Large scale wheat/corn farmer: the great plains of the United States Teacher: any populated area: rural, urban, or suburban

Do the number of allowances a person claims on the W-4 form have to match the number of exemptions that are claimed on their 1040 tax return form?

No, this is simply information your employer needs for withholding purposes.

Not all community or local jobs can be filled by volunteers because...

Not all people are qualified for all service opportunities such as police work.

Some merchants will match the prices of their competitors to get your business.

True

income tax

a government tax based on a person's personal income

If she worked 3 hours overtime one week, how much pay would that be?

about $68

Associate's degree

air traffic controller, dental hygienist, nuclear technician, paralegal

Since the home mortgage and car loan are separate line items, what kinds of expenses might go under "Debt"?

all of the other answers

One strategy for keeping up with important financial and personal information is to store that information on a secure web site on in a safe deposit box. This would be important in case of...

all of the other answers are good reasons

Less than high school

baker/cook, cashier, manual labor, taxi driver

Postsecondary non-degree award

commercial diver, dental assistant, firefighter, insurance appraiser

Another way to make sure you know what is happening with your money and financial obligations is to use...

computer software or intenet services offered by your banking institution to track deposits and payments

What three basic factors do employers consider when they are hiring a new employee for a position.

education, skills, experience

electric outage due to storms or bad weather

electric utility provider

Both budgets have the exact same spending categories.

false

Government budget categories are both less than 2%.

false

If you have to drive a long ways to save a few cents it's still worth it.

false

To determine net pay, take the ______________ and subtract the ___________.

gross pay total deductions

What line item is the most expensive category?

housing

Don't buy on ____________ or when you are _______________ . Carefully check _______________ for the best deal, and never ____________ to save a few pennies. You can shop ______________ for items when local stores no longer have them in stock.

impuse under stress ads and prices travel far online

With education taking up only 2% of federal budget and 29% of local government, you can conclude that education spending would be more of a politically important issue at the ____________ level.

local

milk that is sour with a stamped date that is in the future

local grocery store where you buy groceries

car running rough just after a tune up

local mechanic used for servicing your car

High School diploma or equivalent

mechanic, electrician, fashion designer, office clerk

overtime pay

pay received by a person for work done past their required schedule-usually paid at a higher rate

regular earnings

pay received for a person's regular scheduled hours

When you are looking for or considering a job, what are some of the factors you should know about the job?

pay, education, training

To make sure a building contractor can be expected to do a good job for you, be sure to check...

personal references and the Better Business Bureau

Because consumers have a right to choose among competing services instead of being forced to accept one company's service, what are some services that have been made available from more than one company? Choose the best answer.

phone service, television service, health insurance

If you look at the expenditures for a local government, the largest recipient of tax dollar funding goes to which area?

public education

A consumer is anyone who...

purchases products or services for personal use or possession

poor satellite television reception

satellite service provider

Before buying an item you might not need or you are not sure the size is right for someone else, make sure you know...

the store's return policy

How many exemptions does this person claim for federal withholding?

three

bad tread wear on some new tires

tire store or manufacturer

YTD (year to date)

totals for earnings and deductions for the year

Sam moved to another city with his parents. Sam is in high school and wanted to volunteer at some organization. Which of the following would be his best opportunity since he is NOT 18 years old?

yard work for neighbors and his church

poor cell phone reception

your cell phone service provider

errors in your bank statement

your local bank customer service

Direct deposit is one way to keep your personal finances in order. Direct deposit means...

your payroll check is deposited into your bank account on your regularly scheduled payday

people smoking in the break room at work

your supervisor or human resources

Choose all possible sources of income.

-pay from a full time job -interest from a savings account -stock dividents -tips as a waitress or waiter -commission from sales

Which of the following items are typical expenses that someone would have on a regular basis?

-rent or mortgage payment -groceries -car maintenance -utilities such as electricity or water -cell phone bill

Choose all legitimate consumer rights that are generally accepted by most people.

-right to fair compensation -right to choose -right to be informed -right to be heard -right to safety -right to a healthy environment

Choose all products listed that are known for causing hazardous conditions or accidents if used improperly.

-skateboards -three wheeled ATV's (All Terrain Vehicles) -electric or propane space heaters -flammable aerosol sprays -toys with sharp edges or small parts

Why is it important for everyone who has monetary and other assets to have a will? Choose all that apply.

-so others won't have to decide what is best for your possesions and money to be used for -to make sure all possessions and assets will go to those who have been specifically chosen to receive them -so loved ones and family will know what you want to do with any of your possessions and money once you have died -it relieves loved ones of added responsibility at your death -it benefits those who you wish to bless after you are no longer able to help them after your death -so the state won't be in control of your estate

Stephanie wanted to work as a lifeguard at the community pool during the summer. What are some things she might be required to do or have before being approved for the job?

-take classes in water safety -be certified in CPR -have a background check to make sure she can work with young children -be a certified lifeguard through the Red Cross

You should not buy products when you ___________.

feel pressured or are tempted to buy on impulse

-firemen: either paid staff OR volunteer workers -police officers: salaries paid for by tax money -disaster relief: either paid staff OR volunteer workers -library workers: either paid staff OR volunteer workers -trash collectors: salaries paid for by tax money -teachers: salaries paid for by tax money -prison warders: salaries paid for by tax money -emergency medical services: either paid staff OR volunteer workers -local transit or school bus drivers: salaries paid for by tax money -church leaders other than pastors: volunteers do the work

--

Match professions or jobs to the necessary training or education needed to be proficient in the particular area. You may check the Bureau of Labor Statistics if you need help. Use the following website: (please contact your teacher if the website has an error or doesn't load) <Link>

-Diesel Mechanic: trade or technical school specialiazing in diesel engines -Doctor: undergraduate degree and medical school -Teacher: undergraduate degree in the area of educational specialization -Pastor: undergraduate degree plus seminary or graduate degree in religious studies -Electrician: trade or techncal school and apprenticeship under master electrician -Lawyer: undergraduate degree and law school -Truck driver: trade school and/or CDL certification

In considering purchasing products, what are some good guidelines to follow. Choose all that apply.

-Get opinions from friends and relatives who have bought similar products. -Carefully read and make sure you understand any contract you sign. -Don't travel far to save a few cents on the exact same product. -Shop around comparing different deals for the same item. -Make sure you know the policies for returns and refunds. -Make sure you know what the final price will be including any extended warranty plans and fees.

Choose all possible reasons for shopping online.

-If you are using the same product model number, it will be the same item as in retail stores. -Many online merchants give free shipping on orders. -You don't have to fight the crowds on busy shopping days -It is easy to compare the same item on different websites. -You can check inventory to see if the item is in stock

Consumers have a right to a healthy environment. As a result there have been new laws and regulations enforced that strive to make this a safer and healthier environment for all consumers. Choose any of the statements below that support this effort.

-No smoking in restaurants. -Strict emissions laws on coal burning manufacturing plants. -Stricter pollutant emissions ratings on automobiles. -No smoking in public areas such as hotel lobbies and businesses. -No smoking on airplane -exercise rooms and equipment at businesses for employee use

Choose all items that are possible deductions from a payroll check.

-Social Security taxes -Medicare taxes -federal income taxes -state income taxes -health insurance

According to the percentages of spending by the United States federal government what on what three areas does the federal government spend the most money?

-Social Security, unemployment and labor -Medicare and health -military and related expenses

Tom interviewed several of his neighbors and asked them to fill out an anonymous survey about their jobs. He found out that while one person's salary was $24,000 a year, another person's salary was $98,000. What are some factors that would make such a difference? Choose all that could apply.

-The person who had a lower salary was working part time. -One person owns his own business and the other works at a convenience store. -One person is a highly skilled technician and the other performs manual labor. -One person was in management, while the other was an entry level position. -One person has more years of experience than the other. -The person with a higher salary had a higher level of responsibility

Consumers have rights related to the products they buy and the services they receive. Select all rights that are recognized as rights that consumers have in the marketplace.

-The right to an explanation of all guarantees and warranty information about a product before purchasing. -The right to choose and not forced to accept just one company's product. -The right to be informed about products and any potential hazards involved with the use of the product if there are any. -The right to be heard and voice opinions about products and services. -The right to be safe, and for all products and services to be safe.

Choose all the valid reasons why a product may be recalled.

-airbags in certain car models fail to work properly in accidents -small parts of a game break easily and become a choking hazard for children playing the game -a toy has sharp plastic edges that can cut toddlers when they play with it -a child's car seat breaks lose from the latch that holds it in place -a riding lawn mower has been reported to slip into a higher gear without the owner moving the shift lever

Why is it a good idea that consumers know what is in the food and products they buy? Choose all correct answers.

-because some people are on special diets and need to know specific percentages of certain items -because some people cannot have foods produced in plants that use peanuts in processing food -because some people are allergic to some foods such as peanuts -because some people need low salt products -because calorie intake for some people is important

Choose all professions that require a college education.

-dentist -lawyer -medical doctor -school teacher

Based on the budget spending for a city, What are the three top categories for funding?

-education -human services -safety

Choose the budget item categories that are less than 5% of the budget allocation.

-education -transportation -food and agriculture -government -science

What three basic factors do employers look for when hiring people for their company or organization? Choose the three best answers.

-experience -education -skills

What kind of items should be filed and organized in a central location at your home in a special drawer or file cabinet? Choose all that apply.

-financial records -bank statements -statements of bills paid and to be paid -wills and health directives -tax information and forms

The federal government will often give a tax credit for what kind of consumer action? Choose all that apply.

-installing solar panels to heat your home and hot water -installing energy efficient replacement windows -buying a vehicle that uses alternate sources of fuels/fuel efficient vehicles

Before buying an expensive item, what are some things you could do to make an informed decision?

-make sure it is something you need or want -decide in advance what you are willing to spend -ask those you trust to make wise financial decisions -research online -review available product tests and performance records

Match the profession to either education needed or geographic location.

-neurosurgeon: "correct answer bachelor's degree, medical degree, residency at hospital" -taxi driver: "correct answer city with many people needing transportation" -teacher: "correct answer bachelor's degree, student teaching" -coal miner: "correct answer mountain areas in West Virginia" -park ranger: "correct answer yellowstone or yosemite national park"

How many did this person choose to claim on this form? (Line 5)

2

How many total number of allowances did this person list? (Line H)

4

Why is using a credit card a good idea when making a purchase? Chose the best answer.

It makes it easy to return the product and it is easy to dispute a sale that is questionable.

What withholding status did this person choose?

Married, but withhold at a higher single rate.

What is the purpose of the W-4 form?

So the employer can withhold the correct income tax from the employee's salary.

Why does an employee fill out a W-4 IRS tax form?

So the employer will know hoe much to deduct from an employee's earnings to pay taxes to the IRS.

Based on this pie chart of budget expenditures, what is the largest category that tax money and other revenues be used to pay?

Social Security, Unemployment and Labor

What is gross pay?

Total amount of earned income before any taxes or other deductions have been taken out.

social security tax

a government tax used to help fund retirement benefits and disability payments

Based on the regular pay rate, what would be her gross pay for 20 hours?

a little over $300

Based on vacation pay, how many hours of vacation has she been paid for, year to date?

about 62 hours

Bachelor's degree

accountant, computer programmer, teacher, personal financial adviser

Master's Degree

achaeologist, librarian, physicians assistant, sociologist

Some college, no degree

actor, computer support specialist, private investigator, resident advisor

Rebates are incentives to buy that are often used in connection to what products?

automobiles

Doctoral or professional degree

biochemist, judge, orthodontist, veterinarian

What type of expenses might go under miscellaneous?

emergency car repairs

Military spending is generally a ______________ budget item.

federal

Although average salaries for teachers in Georgia are $3,000 less than the salaries for teachers in Hawaii, based on the cost of living index, teachers in Georgia rank 4th in the nation compared to Hawaii ranking 50th. What might cause this to happen?

geography, tourism, climate

Something very important is missing from this budget based on biblical standards. What would that line item be? What kind of adjustments could be made to the budget in order to fit that category back into the budget?

tithe or charitable giving adjust the percentages to allow for giving

Social security and health services is a big part of both budgets.

true