unit 4 personal finance

Which statement accurately describes how the 50/20/30 Rule would break down your take-home pay? 50% on wants, 20% on saving, and 30% on needs 50% on saving, 20% on needs, and 30% on wants 50% on needs, 20% on saving, and 30% on wants 50% on saving, 20% on wants, and 30% on needs

50% on needs, 20% on saving, and 30% on wants

You are interested in renting an apartment after graduating college. You meet with the landlord and complete the application. All of the following may need to be provided when you sign your lease EXCEPT: Proof of employment A bank account First and last month's rent A security deposit

A bank account

Danaisha does all her grocery shopping at organic markets and has a monthly grocery bill of $325. Charles says that Danaisha is wasting her money on wants instead of focusing on needs. He buys in bulk, uses coupons, and shops at Save-More for a monthly bill of $195. Who's budgeting correctly for food? Danaisha, because she is focusing on her health, which will have guaranteed payoff in the long run Charles, because he's taking efforts to save money by focusing on his needs only Both, because needs vs wants are determined on an individual basis Neither, because they should meet in the middle somewhere. Charles should focus more on health, and Danaisha should cut her spending.

Both, because needs vs wants are determined on an individual basis

Bryan is a great cook. He works as an independent contractor and books gigs cooking customers breakfast or dinner in their own homes on the app Cook For You. Who provides Byran's health insurance and retirement plan? Each family he cooks for The owners of the Cook For You app The Google and Apple app stores Bryan has to fund them himself

Bryan has to fund them himself

Which one of these expenses most likely represents a VARIABLE cost in someone's budget? Electricity bill Rent Car insurance premium Student loan payment

Electricity bill

You overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT: A budget can help you identify any bad spending habits. Using a budget can allow you to work towards your financial goals. Having a budget can help you create an emergency fund. Having a budget is a requirement for obtaining a mortgage.

Having a budget is a requirement for obtaining a mortgage.

Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct? His gross pay is $2,500 and net pay is $3,000. His gross and net pay are $3,000. His gross and net pay are $2,500. His gross pay is $3,000 and net pay is $2,5000.

His gross pay is $3,000 and net pay is $2,5000.

One way the grocery store tricks you into spending more money than you budgeted for is... Being open early in the morning and late at night Paying their cashiers and baggers more Putting high priced items at eye level and lower cost items above or below eye level Accepting digital and print coupons

Putting high priced items at eye level and lower cost items above or below eye level

You're considering moving into a 3 bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely decrease by having roommates? Groceries and eating out Rent Cell phone bill Bedroom furniture.

Rent

What action corresponds to the advice "Pay yourself first?" Wait until the end of the month to determine how much you are leftover to save Set aside a fraction of your paycheck into a savings account before you start spending Spend your regular paycheck on needs and want but funnel any extra money into saving Become self-employed so you're paying yourself instead of being paid by an employer

Set aside a fraction of your paycheck into a savings account before you start spending

Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation? There are several public transportation routes between Greg's apartment and work The cost of public transportation is less than Greg's monthly car payment Greg's company covers half the cost of his monthly public transportation pass Using public transportation, Greg's commute to work one-way is two hours.

Using public transportation, Greg's commute to work one-way is two hours.

You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How long will it take for you to achieve your goal? 6 months 1 year 2 years 3 years

2 years

Which of the following is TRUE about a lease agreement? A lease is an agreement between you and your roommates that you submit to the apartment owner. You never have to pay any fees when you sign a lease. If you do, that means it is a scam. A lease often has information about your prior housing experience; it's a record that the apartment owner can use to see if you are a good candidate. A lease is an agreement that includes details about rent, apartment policies, vacating, etc.

A lease is an agreement that includes details about rent, apartment policies, vacating, etc.

Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now? Average rent for an apartment Food and grocery store options in the area Employment opportunities Average cost of Uber, Lyft, or taxi fare

Average cost of Uber, Lyft, or taxi fare

For two months in a row, Aaron realizes he has a budget deficit of roughly $175. Which of these options make the most sense for him to fix his problem? Cancel one of his streaming video subscriptions and go out to dinner three fewer times each month with friends. Start paying just the minimum monthly payment on his student loan and credit card debt, instead of the extra he's been contributing. Contribute $100 less to savings each month and $75 less to his retirement fund Sell his current car and get a less expensive vehicle

Cancel one of his streaming video subscriptions and go out to dinner three fewer times each month with friends.

Which of these boxes of cereal has the LOWEST unit price? Cereal A, which costs $3.20 for a 16 oz. box Cereal B, which cost $5.00 for 32 oz. box Cereal C, which costs $2.50 for a 10 oz. box Cereal D, which costs $4.50 for an 8 oz. box

Cereal B, which cost $5.00 for 32 oz. box

If you are trying to substantially reduce the amount you spend on food, you should try... Cooking your own food at home for as many meals as possible Dining at restaurants more often so you don't waste water doing dishes Eating more snacks on the go and way fewer meals at home Drinking more coffee and soda so you are not as hungry for food

Cooking your own food at home for as many meals as possible

All of the following are good budgeting strategies if you want to save money at the grocery store EXCEPT: Focusing on unit price when comparing similar products Building a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat Focusing only on the price when comparing similar products Preparing a grocery list before you go to the store and avoiding buying items that aren't on the list

Focusing only on the price when comparing similar products

Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses? Dining out at local restaurants Loan payment on a new car Expenses for new clothes Postponing a purchase for a big-screen TV

Loan payment for new car

Janine is considering what auto costs she is going to have after buying a new car. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership? Yes, these are the three costs she should expect to pay once she is a car owner. No, she does not need to include the cost of auto insurance as it is included in her auto loan payment. No, she needs to factor in other costs such as maintenance, emergency repairs, etc. No, she does not need to include the cost of gas as it is covered under her auto insurance policy.

No, she needs to factor in other costs such as maintenance, emergency repairs, etc.

Sadie is a freelance social media specialist. Companies can hire her to improve their social media presence. Why is it particularly important that Sadie, and other freelancers like her, have an emergency fund? Freelancers charge a very low hourly rate, so Sadie probably doesn't get paid much Sadie doesn't have guaranteed work every day, so she needs money in case she goes a while between clients. Sadie will need a large emergency fund in order to make her monthly insurance payments Sadie's job requires a lot of expensive specialty equipment that will always need replacing

Sadie doesn't have guaranteed work every day, so she needs money in case she goes a while between clients.

Now that Sanjana is done with college, she is trying to decide whether or not she should buy a new laptop for herself. She has made a preliminary list of questions she can ask herself to determine if the new laptop is a need or a want. Which of the following questions would you ELIMINATE from this list? Can I afford this laptop right now? Is this the right time to buy this laptop or will it likely be on sale later? What model laptop is trendy right now with people my age? How am I going to pay for this laptop? If I have to charge it or take out a loan, can I afford the monthly payments?

What model laptop is trendy right now with people my age?

The defining characteristic of a job in the gig economy is... Workers are paid by the federal government Workers decide how much pay they want to pay in taxes Workers receive free phones and wifi connections Workers complete short-term work for many different clients

Workers complete short-term work for many different clients

You are putting together your first post-graduation budget. Your net pay is $2,500 per month and you estimate that your monthly expenses will be $2,625. How would you describe your budget? You have a surplus of $125 You have a deficit of $125 You have a deficit of $2,625 You have a surplus of $2,500

You have a deficit of $125

Which description is most accurate for a Zero-Based Budget? You put every dollar of your net pay into a budget category each month. You spend your checking account balance down to $0 every month You spend your saving account balance down to $0 every month You pay every one of your debts down to $0 every month

You put every dollar of your net pay into a budget category each month.