Personal Finance Quizzes
Youtube: First time home buyer mistakes: One of the first things you should do when ready to shop for a house is
Get pre qualified for a loan
Which of the following is not mentioned as something ancillary
Getting into grad school
Youtube: Brian Tracy: How to Choose a Career. Brian Tracy says "_____ is one of the great wastes of times in life and can rob you of some of your most productive years." (which encompasses the overall theme of his video).
Getting into or staying in your job for which you are not ideally suited
In class and in the youtube video (on paying off student loans) it is recommended to
Pay above the minimum payment on student loans starting with the highest interest rate
Credit Score White Paper: Which of the following is not a category that impacts your credit score?
Payment Amount
Web article: Smart about money: Net pay (take-home) is your gross pay less which of the following
Payroll taxes, group health insurance, and 401k contribution
When you own a sued var, it would be prudent to leave room in your budget for increased
Repair Costs
Youtube: HR basics: Employee Benefits: Which of the following is NOT a mandatory (required) employee benefit?
Retirement Plan
A practical definition of creating a budget is "telling your money where you want it to go in the future.
Rrye
Credit Karma Leasing Article: When you lease a vehicle your monthly payments are mainly based on the depreciation costs calculated of the vehicle
True
Interest is not charged by the credit card company if you pay your balance in full
True
On your paycheck, net pay is lower than gross pay due to taxes and other deductions such as retirement plans contributions and health insurance premiums
True
Principal is the money that the consumer pays back to the financial institution
True
Refinancing to reduce your interest rate on a current loan only makes sense when the upfront costs
True
Siegel describes the main two reasons for buying a home on a 15 yr mortgage (vs a 30 yr mortgage) as 1) assures that you're not buying more house than you can afford 2) saves you tens of thousands of dollars in interest
True
The majority of Americans take our 30yr mortgages.
True
The overall focus on the personal stories from the youtube videos is to reduce expenses and tuition costs through spending/savings habits and taking maximum advantage of student aid programs
True
True/False: Leasing a vehicle is typically the lowest cost way to afford a new vehicle every 1-3 years (vs buying/trading)
True
Utility describes that amount of satisfaction received from purchasing/utilizing goods or services
True
Web article; Smart about Money. After-tax benefits will now lower your tax liability, they are deducted after taxes and have been withheld
True
When determining your estimated family contribution (EFC), a student's assets will count more than the parent's assets.
True
YouTube: Alexa Von Tobel TED Talk: Alexa talks about the "domino effect" where our financial decisions (good or bad) trickle down and affects future generation
True
Internet Article: You Are Responsible for your Worldview. Which phrase best sums up the article?
We view the world differently which in turn impacts our perceptions and beliefs
The debt service ratio is solved by taking _____ and should ideally be under ____%
total monthly loan payments divided by gross monthly income, 35%
What can be found in your credit report?
Date of Birth
Siegel: Develop a written budget and evaluate it... Siegel says its important to do 3 things with your budget
Develop, Track, Analyze
Book: Siegel Principle 13 Develop a written budget and evaluate it: Siegel says it is important to do 3 things with your budget
Develop, track, and analyze
The SMART goals is an acronym for setting quality goals. What does the "A" stand for?
Attainable
Which of the following is NOT an example of revolving credit?
Auto Loan
How much of your student loan interest can you deduct yearly as an adjustment to your income?
$2,500
Joe made $80,000 last year. He paid off $5,000 in credit card debt. He put $4,000 in his 401k retirement plan, his employer put in a 50% match on his contributions, he also saved $3,000 to his Roth IRA. What is Joe's savings rate?
11.25%
Joe made $80,000 last year. He paid off 5,000 in credit card debt. He out $4000 in his retirement plan, his employer put in a 50% match on his contributions, he also saved $3,000 to his Roth IRA. What is Joe's savings ratio?
11.25%
How old do you have to be to start your own credit card?
18
There is a general rule of thumb that your total monthly debt payments
20%
If a new car is $25,000 and it depreciates 20% the first year, what will the value be at the end of the first year
20,000
If a car new is $40,000 and it depreciates 24% the first year and 20% the second year, what will the valye be at the end of the 2nd year
24,320
Lecture: Homeowners likely need ____ years to recoup their transactions costs on purchasing/selling a home
5 years
YouTube: Alexa Von Tobel TED Talk: What percentage of Americans live "paycheck to paycheck"?
61%
Credit Score White Paper: According to the White Paper, what is the minimum FICO score to be approved for a mortgage?
620
White Paper: Most lenders require a credit score of at least ____ to secure a home loan
620
A _____ records your "cash flow" (money "in" and "out") and ultimately either a cash surplus or a cash deficit
?
We discussed "good debt" vs "bad debt" and some characteristics that define both. Which of the following would be the best "good debt" based on the debt characteristics (and any correlated asset- if one)?
?
If your net worth is $50,000 and you pay off your student loan from your savings account, how will your net worth statement be affected?
??
Donald wanted to buy a house in the country, so he sought advice from his cousin Evan. Evan explained the advantages and disadvantages of home ownerships however, he had some information incorrect. Which of the following is incorrect?
An advantage is that the down payment required in less than the security deposit for a rental
Based on such advantage as high contribution limits (with no high income earning limitations), tax deferrer growth, and tax-free distributions for qualified education expenses; investing for your future kid's college is likely best done through
An in-state 529 education plan
Your net worth statement measures your _______, based on ______
Assets and liabilities, a specific point in time
Your net worth statement measures your ______ based on ______
Assets and liabilities, and overall net worth won't change
Book: Siegel, Principle 23: Siegel says what will be the "scorecard" for your financial achievement?
Budgeting and net worth statements
YouTube: Young Guys Finance: Budgeting: He says in the video that he believes that budgeting has a negative connotation but we should approach with a different viewpoint that
Budgeting should be about awareness, so you can spend your money where you want
Budgeting has a negative connotation but we should approach with a different viewpoint that
Budgeting should be about awareness.. so you can spend your money where you want
Siegel recommends a few things you should do to get out of debt quickly. Which is not something he recommends?
Consolidate loans so you can make lower payments for longer
Book: Siegel Principle 44: If you are in debt, get out of it quickly. He recommends a few things you should do. Which of these is NOT something you he recommends
Consolidate your loans so you can make a lower payment for longer
Lecture: An individual wants to purchase a larger house. However she has not sold her current home. She may want to include an ______ in her offer
Contingency Clause
White Paper: When you make an initial offer on a home, you submit ____ along with your offer to display your serious intent on purchasing the home
Earnest Money
What is one way you can reduce total tuition cost
Enroll in 15-18 credits each semester
Being added on as an additional user to your parents credit cars for small business cards wont directly affect your credit score?
False
Blog. MMM Commuting. True or False? MMM discussed the downsides of commuting (lost time and money) but at the end of the comments that it may be a necessity if you live in a harsh climate where you can't walk, bike, or access public transportation.
False
If enough expenses are paid, both education tax credits can be taken for the same student in a given year.
False
If you believe that interest rates will be going up, an ARM (adjustable rate mortgage) would be a better solution that a fixed mortgage
False
Lecture: Certain locales are better markets for renting (vs buying) such as lower cost of living areas in the midwest like Cedar Falls or Des Moines compared to New York or Los Angeles
False
Most federal grants, work-study programs, and subsidized loans are merit based.
False
Social Media has little effect on potential job or career offers
False
The average propensity to consume is defined at the necessities, comforts, and luxuries enjoyed or desired by an individual or family.
False
The big difference between a subsidized and unsubsidized loan is that your interest is paid (by the gov't) while in a the deferral period on an unsubsidized loan.
False
Youtube. Forbes. Employee Benefits. Your employer may offer an additional third party insurance or benefits (pet insurance, legal services, auto insurance)and it is always going to be the best, most affordable option.
False
Blog: MMM: According to MMM, "these machines" make people what every time they use them?
Fatter and Poorer
When you start paying back your federal loans after graduation, the default repayment option is
Fixed payments over 10 years
If you want to buy a vehicle and take $5,000 from your savings account and purchase a $20,000 vehicle (financing the difference), how will your assets on net worth statement change?
Increase $15,000
If you want to buy a vehicle and take $5,000 from your savings to purchase a $20,000 vehicle, how will your assets on net worth statement change?
Increase $15,000
Lecture: Majority of each monthly payment at the beginning of a 30 year fixed loan goes to pay
Interest
For a subsidized loan, your interest while you are in school full time
Is paid by the federal government
In class we discussed saving for future education goals. Which of the following most accurately describes the conversation
It depends on family dynamics and goals whether or not kid's college education is a savings priority
Book: Siegel. Which of the following should be the top two considerations when buying a home
Location and price
YouTube: 10 Things the Rich do That the Poor Do Not: The rich focus on _____, not on _____
Net Worth, Income
YouTube: Young Guys Finance: How to set Financial Goals: While I didn't agree with everything in this video, my favorite quire from this video is regarding the nature of personal finance. He states ________. (Also summarizes the overall theme of the video.)
Personal finance is more personal than finance
Our federal income tax system is
Progressive
Blog: MMM: What is MMM overall strategy that he preaches (paraphrased)?
Stop spending so much money and save the majority of your income
When you graduate you are able to consolidate your federal student loans. Per class discussion and the online material, what is the most efficient way (generally) to do this?
Through the federal website directly
Based on Siegel's recommendation you will save money on overall cost of ownership by paying attention to
Tire Pressure
The debt service ration is solved by taking _______ and should ideally be under _______%.
Total monthly loan payments divided by gross monthly income, 35%
A disadvantage of buying a Certified Pre-Owned car is the minimal warranty that will be provided on the vehicle
True
A practical definition of creating a budget is "telling your money where you want it to go in the future" (usually in a monthly or yearly format).
True
APR is a more effective way of comparing loan details
True
Benefits are equally important to everyone so everyone will judge different job opportunities (Job A vs Job B) in the same light
True
Blog: MMM: The premise of the article is that is it ridiculous to use a 4,000 pound machine capable of hauling thousands of people/cargo when all you need to do is take yourself to the store for a single item (when you could walk or bike)
True
Book. Siegel P17. Based on this reading you'd assume it is the employees responsibility to make sure one understands their benefits and makes the best personal choice
True
Book; Siegel P: Siegel would say that it is important to put your college education to use and get into your first job so you can show them your skills and contribute new ideas
True
Blog: MMM: "Joe" who is a mid 30's high income attorney. Which of these statements best sums up MMM's feelings towards Joe?
You make a huge income each year and you have a lot of debt. Stop spending all your money, pay down on your debt, and save 30-50% of your income
Blog: MMM: How Rich Are You? Find your net worth, spending, and savings rate?: In this blog post, MMM highlights Joe who is a mid-30's high income attorney ( and details out his net worth statement, cash flows, and savings rate). Which of these statements best sums up MMMs feelings towards Joe?
You make a huge income each year and you have a lot of debt. Stop spending all your money, pay down your debt, and save 30-50% of your income.
Book: Siegel, Principle 4: Always live below your means. Siegel states that "if you always live below your means, ______?"
You will always have money to save and invest
Book: Siegel, Principle 8: Spend just one hour each week learning about personal finance. What does Siegel "most importantly guarantee" will happen if you devote one hour for a week for 10 years (520 hours)?
You will have earned/saved tens of thousands of dollars through your learning
