pf exam
For students under 18, a fully funded emergency fund should be what?
$500
a savings account sold by an insurance company designed to provide payments to the holder at specified intervals usually after retirement
Annuity
Renters insurance is required for all renters
false
Teens have cited "friends" as the strongest influence over their purchase decisions.
true
The academic and financial choices you make in the next few years will affect the next 40 years of your life.
true
The average millionaire reads one nonfiction book a month.
true
The envelope system works great for managing spending on things that don't normally have a fixed monthly expense
true
The number one cause of divorce is North America today is stress and disagreements over money.
true
There are 3 credit bureaus: experian, transunion, and equifax
true
Those that succeed at the career of financial planning are usually very skilled communicators who care about helping people
true
Tips at work should be counted as income when you are doing your taxes. They are considered to be "earned" income.
true
True financial security is achieved when your money begins to generate an income-your money starts working for you.
true
Using cash can give you more barganing power than using credit
true
When money is taken out of a 401(k), 403(b) or a Traditional IRA account in retirement it is taxes as ordinary income
true
When you're older and out of school, you'll need to grow your emergency fund into a full three to six months' worth of expenses.
true
You can and should obtain a free copy of our credit report annually in order to check for suspicious activity
true
You must have earned income to contribute to a roth IRA account
true
budgeting is crucial to your financial success
true
A program in higher education that allows student to work part time while continuing their studies
work study
what are some signs that your identity may have been stolen
you're alerted to a credit card charge you didn't make. ... Your loan or credit card application was denied. ... There's a change to your credit score. ... There's a new account you didn't open under your name. ... Your information was part of a data breach. ANSWER ON TEST (ALL OF THE ABOVE)
Savings accounts and money market accounts are most appropriate for...
Emergency funds and short-term goals
The knowledge and skill set necessary to be an informed consumer and manage finances effectively
Financial Literacy.
Which of the following statements best explains why income alone does not determine wealth
How much money a person makes does not dictate his or her spending and saving behavior
Car repairs are an...
Intermittent expense
what is NOT a benefit of understanding your own money personality
Knowing your money personality allows you to excuse excessive spending
quality of an asset that permits it to be converted quickly into cash without loss of value
Liquidity
To ensure that some of your retirement savings will not be subjected to income tax upon withdrawal, you should contribute to...
Roth IRA
Which of the following steps is the first foundation
Save $500 for an emergency fund
What best summarizes how the use of a credit card for purchases instead of cash can change ones spending behavior
Studies show that consumers typically spend mroe when using credit as opposed to cash purchases
The five steps to financial success
The Five Foundations
The zero based budget is the best method of budgeting because...
The Zero-based budget ensures that every dollar you make is assigned a specific purpose.
In the state of WI, you can re-register your UGMA/UTMA account at the age of 21 without your parents permission
True
a detailed report of an individual's credit history
a credit report
Brad has a piece of paper that guarantees the conditions under which he can return, replace, or repair an item that he has purchased. What is this...
a warranty
what account records would have the most current balance
account balance statement from the ATM typically reflects the most up-to-date balance
A written budget, if written and followed, removed the following from your finances...
all of the above
You should visit your colleges financial aid office if...
all of the above
Key components of financial planning do NOT include what
allow your financial planner to make all of your major money decisions
A yearly fee thats charged by the credit card company for the convenience of the credit cars
annual fee
Which of the following is not a good option when it comes to paying for your education
ask your parents to take out a loan
The next door neighbor twins, Johnny and Tommy, are playing hockey in their driveway. Johnny sends a slapshot past Tommys head and the puck goes through your cars window. What type of insurance is used for this claim
comprehensive
Which of the following is not needed
dining out
Americans typically maintain a very high savings rate.
false
Co-signing a loan is a good way to help a friend or relative.
false
Contributions can be taken out of a Roth IRA account at any age without penalty or taxes due
false
Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone.
false
Good investment portfolios are extremely complex
false
Having more than one bank account is never a good idea since it can complicate money management.
false
If you get into financial trouble, borrowing against your retirement plan is a good option.
false
If you take money out of your traditional IRA before age 65, there is a 10% penalty and the withdrawal is taxable
false
If you were to get married on January 1, 2024, you should be eligible for a married status for the tax year 2023
false
If you write a zero-based budget every month, it is not necessary to reconcile your account.
false
In the state of Wisconsin, you can re-register your UGMA/UTMA account at 18 without your parents permission
false
Inflation has no effect on your buying power.
false
Money in a UGMA/UTMA account is owned by the custodian until the minor is age 21 in WI
false
Most Americans today are wealthy and will have financial security when they retire
false
Once you declare a major, you must commit to that major for your entire college career
false
Prior to the FCRA, consumers were unable to challenge errors in their credit reports
false
Roth IRA accounts are never appropriate for individuals in their 20s
false
Savings accounts usually have a high interest rate compared to other financial products
false
Single stocks and mutual funds carry the same amount of risk.
false
Students rarely drop out of college due to financial trouble
false
The best quality colleges are always the most expensive.
false
The first thing you should save for is your retirement fund according to Dave Ramsey
false
Under the Fair Credit Reporting Act (FCRA), individuals are rejected for insurance due to information contained in a consumer report.
false
When it comes to saving money, the amount you save is determined by how much you have left at the end of the month once all of you spending is done
false
You must be at least 10 years old to have a UGMA/UTMA account
false
You must go to a prestigious school in order for employers to recognize your talents and strengths.
false
You should keep your emergency fund in the same account as your spending money.
false
You'll only need to complete the FAFSA once during your college education.
false
a four-year degree is necessary regardless of which career your entering
false
expensive houses and new cars are a true indication of wealth
false
there is no limit to how much money can be saved in a Roth IRA
false
who you are in a relationship with someday is not a major factor in your success with money
false
Rent is a
fixed expense
A long term rental agreement on a car; a form of secured long term debt
lease
what concept is best explained by the statement ʺmoney spent here cannot be spent thereʺ
opportunity cost
what is NOT recommended in the debt snowball method
paying higher interest accounts off first
A listing of your investments
portfolio
the benefit of diversification in your investments is
reduced risk
A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic, or other achievements
scholarship
Securities that represent part ownership or equity in a corporation
stocks
"pay yourself first" means you should assign a portion of your income to savings and investing every months
true
Being married (or emotionally attached) to a purchase will cause you to lose bargaining power.
true
From Dave Ramsey's point of view, it is very difficult to become successful if you don't make a commitment to give.
true
If you leave a job and have money saved in your employer's retirement plan, always roll that money into an IRA using a direct rollover, which allows you to avoid taxes and penalties.
true
If you plan to attend a community college for your first two years, youʹll want to work closely with your advisor to make sure that the classes you take will transfer to your four-year school of choice.
true
Learning to be quiet is actually a powerful tool in negotiation.
true
Making informed choices as a consumer will usually yield savings.
true
Money in a traditional IRA must begin to be taken out when you are 73. This is called a "required minimum distribution"
true
Money markets are great for your emergency fund due to their liquidity and stability.
true
Never buy something you do not fully understand.
true
Our culture thinks student loan debt is normal and that itʹs an acceptable way to pay for college.
true
Setting up automatic account transfers is the easiest way to build your savings for your emergency fund or large purchases.
true
Shopping for bargains is part of a healthy financial plan because it makes your hard -earned money go further.
true
You must shop for the best price for your education in the same way you comparison shop for any large purchase.
true
Zero percent financing is nothing more than a really good marketing tool
true
having debt keeps you from building wealth
true
if you leave a company after 1 year and your company has a 5 year vesting schedule, you'll be able to take 20% of the company match with you.
true
you may have limitations to what you can invest in when investing in a company sponsored 401k plan.
true
