Personal Finance Final

Your friend, Juliana, has an informational interview next week. She asks you for advice on how to prepare for it. What would you recommend? a. Create a list of questions ahead of time that will help you get a better understanding of their job and the industry they work in b. Avoid personal questions like how those chose their career or what they like least about their job c. Send a short text to them after your meeting to say "Hey, thanks for your time. Let's do it again!" d. It's not a real interview, so don't worry about preparing any questions -- just let them do all the talking

a. Create a list of questions ahead of time that will help you get a better understanding of their job and the industry they work in

What are TWO advantages of federal student loans? I. Federal student loans do not need to be repaid II. Federal student loans generally have more flexible repayment options compared to private loans III. Federal student loans have lower credit standards (are easier to get) than private loans which may require a co-signer IV. Federal loans don't charge any interest for the entire term of the loan.

b. II & III

Geraldo is excited to practice his elevator pitch as he looks for a summer job. "I am looking for a job but don't have any experience. I want a job so I can make money for things I want, like new wheels for my car and a spring break trip that I want to take with friends. I attend NGPF High School and will graduate next year and need a schedule that works for me." What's the biggest problem with his statement? a. He's focused on what he wants more than on what he can provide for the employer b. He admits he doesn't have any experience c. He doesn't mention where he'll attend college after graduation d. He doesn't explicitly ask for a job in this 30-second pitch

a. He's focused on what he wants more than on what he can provide for the employer

Steven is taking AP courses, plays a fall varsity sport, and is a member of the student council and the chess club. Although he's busy, he also would like to get a part-time job for 8-10 hours per week to generate spending money for when he hangs out with his friends. What should his focus be when job searching? a. How flexible will the employer be with his school and extracurricular activities? b. What percentage of this business's employees go on to top universities? c. Are there enough vacancies that his friends could get jobs there, too? d. What is the pay rate offered with the position?

a. How flexible will the employer be with his school and extracurricular activities?

Which of the following documents is NOT required to file your FAFSA? a. Proof of employment b. Social Security number (or Alien Registration Card, if not US citizen) c. Recent tax return d. Bank and/or investment statements (if applicable)

a. Proof of employment

You just finished an interview for a summer internship you'd really like, and the interview seemed to go well. What would be an appropriate follow-up? a. Send a nice thank you note or email to the person you interviewed with b. Call the business every day after school to see if they've made a hiring decision yet c. Write the hiring manager an email saying you received another offer and need to know about the position urgently d. Don't reach out to them, because they'll think you're desperate for a job

a. Send a nice thank you note or email to the person you interviewed with

Which of the formulas below equate to net price? a. Sticker price minus grants and scholarships Grants and scholarships + student loans c. Sticker price + grants and scholarships d. Sticker price minus student loans

a. Sticker price minus grants and scholarships

As a result of completing the FAFSA, you get a student aid report that indicates your EFC is $10,000. What does this mean? a. The government expects that your family can contribute about $10,000 to the cost of your education b. You can expect to receive $10,000 in loans from the federal government to pay for college c. You should only apply to schools that cost $10,000 or less d. You can expect to receive $10,000 in grants from the federal government to pay for college

a. The government expects that your family can contribute about $10,000 to the cost of your education

A potential employer asks Ramon, "What is your greatest professional weakness?" Which answer would probably come across best in an interview? a. Truthfully, I'm not great at speaking up in large groups, but I'm working on it b. Honestly, my teachers get angry because I'm ALWAYS late to class c. Basically, I have no job experience whatsoever, so who knows? d. Actually, I don't think I have any

a. Truthfully, I'm not great at speaking up in large groups, but I'm working on it

Lisa, a high school student, bags groceries at the local supermarket three nights a week during the school year. She is a _________ worker and likely gets paid _________________. a. part-time, an hourly wage b. part-time, a salary c. full-time, a salary d. full-time, an hourly wage

a. part-time, an hourly wage

Order these types of financial aid from MOST attractive to LEAST attractive: 1) Private Loans 2) Work-Study 3) Grants & Scholarships 4) Federal Loans

b. 3,2,4,1

Which of the following statements is TRUE about the value of education? a. Pursuing a college degree only has quantitative benefits, such as a higher salary. b. A college graduate can expect to earn, on average, about a $1,000,000 more than a high school graduate over a career. c. Every college graduate can expect to have a starting salary over $60,000 right after college. d. A high school graduate can expect to earn about the same as a college graduate.

b. A college graduate can expect to earn, on average, about a $1,000,000 more than a high school graduate over a career.

You are trying to get an internship at a local newspaper for next summer. Who would be the best personal reference to include on your application? a. Your soccer coach from 4th and 5th grade b. A teacher whose class you've received As in the past two semesters' c. Your grandma, who knows you really well even though she lives in another state d. The journalism teacher at your school, even though you've never taken her course or written for the school paper

b. A teacher whose class you've received As in the past two semesters'

Fred is comparing different financial aid award letters he has received. He notices that some of the letters do not contain sufficient information for him to determine the net price for that school. What is the BEST course of action that Fred can take? a. Fred should talk to the guidance counselor at his school to get the most updated information for each college. b. Fred should contact the financial aid office at each school to ask for the missing information. c. Nothing - Fred can assume that he will receive the information he needs in future mail/email from the college. d. Fred should do research online to find the missing information

b. Fred should contact the financial aid office at each school to ask for the missing information.

Avery wants to apply for an internship in video game development, but she's never had a job before. What strategy should she use when crafting her resume? a. Research an impressive computer programming summer camp and include that on her resume, even though she's never attended b. Highlight other things she's done that might make her an attractive candidate -- taking a programming class in high school, being VP of the video game club, contributing to online gaming forums regularly c. Don't even apply for this type of internship until she has more work experience d. Try applying without even creating a resume, even though the job posting explicitly asks applicants to submit a resume

b. Highlight other things she's done that might make her an attractive candidate -- taking a programming class in high school, being VP of the video game club, contributing to online gaming forums regularly

Which of the following is a good strategy to use when it comes to paying for college? I. Make a financial plan to figure out how you are going to pay for 4-5 years of college BEFORE you go II. See how much you can borrow in loans before applying for scholarships III. Spend the money that you earn from your summer job so you can get more financial aid IV. Save your earnings from your summer job so that you can reduce the amount of loans you need to take

b. I & IV only

Janelle's family earns about $60,000 per year. She has been accepted to State U and Greenlawn College and is comparing their financial aid packages. State U has a sticker price of $28,000 and net price of $12,000. Greenlawn College has sticker price of $60,000 and net price of $9,000. Which statement below is FALSE? a. State U has a lower sticker price than Greenlawn College b. If making a decision strictly based on cost, Janelle's best option is State U c. Greenlawn College is providing Janelle more grants and scholarships d. One factor that impacts net price is family income

b. If making a decision strictly based on cost, Janelle's best option is State U

Your friend Daniela has prepared a list of questions to ask in her interview tomorrow at a local fast food restaurant. Which question should she NOT ask if she wants to get the job? a. Why do you think people choose to work at your restaurant rather than at a competitor's? b. What happens if there are days when I'm scheduled to work but I have a lot of homework or an after school event I want to attend? c. What is involved in a typical shift? d. What is the opportunity for advancement in a part-time role at this company?

b. What happens if there are days when I'm scheduled to work but I have a lot of homework or an after school event I want to attend?

Which of the following statements is TRUE regarding references you would include on a job application or resume? a. The more personal references you include, the better, with the optimal number being between 10 and 15 b. You should contact your personal references ahead of time to ask their permission to include them on your application c. It is OK if you do not provide any personal references, because companies typically do not contact them anyway d. You are more likely to get the job if you include fake but important-sounding personal references

b. You should contact your personal references ahead of time to ask their permission to include them on your application

Every April, businesses in your city start hiring part-time high school employees to work during the summer. You really want to secure one of these jobs. What information should you have with you to be sure you can fill out an application at any place that's hiring? a. Your GPA, your emergency contact info, your parent(s)'s current income levels b. Your work history, the proper spelling of your high school, contact info for your references c. Your report card, a list of the best vacations you've taken, contact info for your references d. A utility bill, your social security number, and a resume

b. Your work history, the proper spelling of your high school, contact info for your references

In order to qualify for financial aid, which form must you file? a. EFC b. FAFSA c. SAR d. Financial Aid Letter

b.FAFSA

Put the list of financial activities in the proper sequence from first step to last step: 1. File the FAFSA 2. Save for college and look for scholarships 3. Pay first college bill 4. Complete financial aid paperwork for college you plan to attend 5. Compare financial aid award letters from colleges that have offered you admission

c. 2, 1, 5, 4, 3

Which of the following is NOT a good strategy that a "responsible borrower" would use? a. Only accept the aid that they need. b. Research expected salaries before accepting a college's offer of admission and financial aid package. c. Consider only out-of-state schools to attend. d. Contact their loan servicer to understand their loan repayment options.

c. Consider only out-of-state schools to attend.

Which represents the most traditional sequence of events for being hired for a job? a. Write cover letter, write resume, fill out application b. Job offer, create resume, networking c. Create resume, fill out application, interview d. Interview, networking, create resume

c. Create resume, fill out application, interview

While doing online research about the colleges you're considering attending, you see an ad that says, "Enter a few vital pieces of information, pay $39.99 per month, and we guarantee to win you a scholarship. You don't even have to write an essay! Sign up today with just your name, social security number, and an email address!" How should you proceed? a. Don't sign up, unless your parent says it's OK to use their credit card for the payments b. Sign up, but use a fake email address in case it's spam c. Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites d. Sign up, because at $40 per month, it will be a bargain if they win you thousands in scholarships

c. Don't sign up, because you shouldn't pay money to win scholarships, and you shouldn't enter your SSN into unknown websites

When Emmanuel receives his Student Aid Report, it lists an Expected Family Contribution of $8000. His family had only budgeted to give him $2000, so they are $6000 short. Which of the following is not an option? a. His parents take out a Direct PLUS Loan for the other $6000 b. Emmanuel applies for additional scholarships or grants that are being offered from other organizations c. Emmanuel starts the semester, hoping the college doesn't notice the shortage, and then deals with the consequences if they catch him d. Emmanuel calls the financial aid office, explains the situation, and asks them to review his materials again

c. Emmanuel starts the semester, hoping the college doesn't notice the shortage, and then deals with the consequences if they catch him

How much does it cost to file the FAFSA? a. It is free the first time you file, but costs $9.99/year thereafter b. It is 2% of your total loan amount Selected: c. Nothing; it is free d. $50.00

c. Nothing; it is free

Which set of items would be appropriate to include on your resume during high school? a. Education, scheduling requests, personal references b. Education, computer skills, starting salary request c. Volunteer experience, sports team participation, computer skills d. Requested vacation days, education, special dietary needs

c. Volunteer experience, sports team participation, computer skills

Cover letters can be time consuming to write. Which of these is the best approach to use on this task? a. Write one general purpose cover letter, but be sure to put in the proper name and company in the introduction b. Just rewrite your resume bullet points in sentence form, and that will be a sufficient cover letter c. Write a personalized cover letter for each job you apply to, but keep it to no more than one page d. Don't bother writing one -- no recruiter reads cover letters anyway

c. Write a personalized cover letter for each job you apply to, but keep it to no more than one page

How should you think about the relationship between your resume and cover letter? a. Your cover letter does not need to be customized but your resume should be customized for each job you apply for b. There is no relationship; you should create both of them independently and there should be no overlap c. Your cover letter should highlight key elements of your resume that make you qualified for the job d. Your cover letter is optional while your resume is required for any job that you are applying for

c. Your cover letter should highlight key elements of your resume that make you qualified for the job

Which of these would most likely be classified as an internship? a. Harvey works 35-hours per week as a lifeguard during the summer so he can save for his college tuition b. Margie volunteers at a local soup kitchen because it's affiliated with her church and she likes to help out c. Jodie takes a job in a craft store because it's close to her house and doesn't require late night shifts d. Santos wants to major in marketing and applies for an unpaid job doing social media posting for a local nonprofit

d. Santos wants to major in marketing and applies for an unpaid job doing social media posting for a local nonprofit

Which of these payment terms will likely lead to you paying the LEAST interest on your student loan? a. 15 year term b. 10 year term c. 20 year term d. 5 year term

d. 5 year term

How is a LinkedIn profile similar to a resume? a. Both need to be created by a trained professional to get any attention/job offers b. Both cannot be completed until after you finish college c. Both are hosted online and accessible for anyone to access d. Both highlight the best features about you that make you "right" for a job

d. Both highlight the best features about you that make you "right" for a job

You received a call from an ice cream shop in reference to your recent application for a part-time job. They want you to come in for an interview next Thursday at 6:30pm. What will you wear? a. A business suit and polished shoes b. You're not sure, so you call and ask to speak with the manager about what they expect you to wear c. You're coming straight from a soccer game, so probably your uniform d. Business casual attire, such as non-jeans and a nice collared shirt or blouse

d. Business casual attire, such as non-jeans and a nice collared shirt or blouse

Which of the following would be a suggested action prior to a job interview? a. Stay up really late going over interview questions b. Make sure you have scheduled transportation so you arrive 60 minutes early to the interview c. Call the company at least twice to verify the date, time, and location of the interview d. Conduct online research to learn more about the person you are having the interview with

d. Conduct online research to learn more about the person you are having the interview with

How does your social media behavior influence your ability to get a job? a. It can have a positive impact as employers like fun-loving employees who know how to have a good time b. It has no impact; employers are forbidden by law from looking at your social media accounts c. Unprofessional public profiles on social media sites are generally not viewed by employers so no need to worry about those embarrassing pictures d. Having a professional LinkedIn profile is critical since almost all recruiters use it to find talent

d. Having a professional LinkedIn profile is critical since almost all recruiters use it to find talent

Your friend Jason is not planning on submitting the FAFSA, because he thinks that his parents earn too much for him to be eligible for financial aid. You tell him that this is a common misconception and that he should definitely file the FAFSA. Otherwise, he could miss out on: I. Subsidized and Unsubsidized Loans II. Work-Study III. Private Loans IV. Grants and Scholarships

d. I, II, & IV only

Which of the following is TRUE about student loan repayment? a. Most loans have a grace period of 12-18 months after you graduate college. b. If you are having a hard time making your loan payments, contacting your loan servicer is not a good idea because it will get you in more trouble. c. If your loan enters default, that means it has been forgiven by the loan servicer. d. If you miss a loan payment, there can be consequences starting as early as 15 days after your first missed loan payment.

d. If you miss a loan payment, there can be consequences starting as early as 15 days after your first missed loan payment.

Keith's tuition, room & board, and fees for freshman year total $26,000. Using scholarships, grants, and Federal student loans, his financial aid package is $26,500. What option below is both realistic and financially responsible? a. Keith should not choose this college because he cannot afford it b. Keith should use the remaining $500 to cover all other expenses during freshman year c. Keith should take out a private loan and limit himself to $8000 in other expenses freshman year d. Keith should pick up a part-time job (during the academic year or during breaks) to cover remaining expenses

d. Keith should pick up a part-time job (during the academic year or during breaks) to cover remaining expenses

Which type of financial aid am I? I have limits on the amount that you can borrow based on your year in college. The federal government makes the interest payments on me while you are in college, and you make the interest payments on me after you graduate. a. Grants b. Work-Study c. Unsubsidized federal loan d. Subsidized federal loan

d. Subsidized federal loan

What of the following is NOT a purpose of a Student Aid Report (SAR)? a. The SAR is a record of the answers you submitted on your FAFSA. b. Schools use your SAR and EFC to create a financial aid package for you. c. The SAR has your Expected Family Contribution (EFC) d. The SAR documents all scholarships you have applied for.

d. The SAR documents all scholarships you have applied for.

Which of the following statements is NOT true about the Standard Repayment plan? a. The Standard Repayment Plan is the default student loan repayment plan that you are put on if you do not choose another plan. b. The Standard Repayment Plan is often recommended because you end up paying the LEAST in total when compared to other repayment plans. c. The Standard Repayment Plan has you pay your student loans back in 10 years. d. The Standard Repayment Plan has high monthly payments, so you will end up paying MORE in total than any other repayment plan.

d. The Standard Repayment Plan has high monthly payments, so you will end up paying MORE in total than any other repayment plan.

Assuming you live on campus, which of the following is a cost that you are LEAST likely to pay? a. Tuiton b. Room and Board c. Books d. Transportation to and from school

d. Transportation to and from school

Which of the following statements about applying for grants and scholarships is FALSE? a. While some grants and scholarships are guaranteed for all four years of attendance, others expire every year and must be reapplied for b. Colleges often offer merit-based (rewarding your accomplishments) and need-based (depending on your financial situation) scholarships c. You should not have to pay money or provide sensitive information, such as your SSN, when applying for scholarships d. While the FAFSA is required for federal loans or grants, you don't need to complete it for university, community, or professionally sponsored funds

d. While the FAFSA is required for federal loans or grants, you don't need to complete it for university, community, or professionally sponsored funds

What is a good rule of thumb to consider when it comes to student loan debt? a. You should never borrow money to go to college since it is unlikely that you will be able to pay it back b. You should borrow as much money as you can through private loans and then take out federal loans c. You should borrow as much as your college says you should borrow as laid out in your financial aid award letter d. You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college

d. You should generally limit your borrowing to what you expect to earn as a starting salary when you leave college