Personal Finance Review

Front

You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck." What does Aunt Tina mean by that?

Back

Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses.

Front

Which of the following is an effective strategy for personal saving?
Save a certain percentage of each paycheck and deposit it directly into a savings account,
Wait until the end of the month and save whatever is left in your checking account,
Cover all of your wants and needs and save whatever is left over,
Take out a payday loan so you can save before you receive your paycheck

Back

Save a certain percentage of each paycheck and deposit it directly into a savings account

Front

Why is it so important to have a checking account?

Back

A checking account facilitates the rest of financial life by making your money available when and where you need it while also keeping it safe.

Front

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?

Back

You have a deficit of $125

Front

Which of the following statements is an advantage of online banking?
Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch,
Using online banking allows you to earn a higher interest rate,
Once you set up online banking, your bank will waive overdraft, ATM, and monthly fees,
You can only shop online if your bank account has online banking features

Back

Using online banking, you can request transfers, pay bills and automate your savings without visiting the bank branch.

Front

All of the following statements about bank accounts are true EXCEPT…
Historically, savings accounts earn higher returns than investments in the stock market, If the bank account is FDIC-insured, your money is safe even if the bank fails, Many banks pay interest on the money you deposit into your savings account, Money in a checking account is usually easy to access via ATM, debit card or check

Back

Historically, savings accounts earn higher returns than investments in the stock market

Front

Which of the following is a good reason to start saving for retirement in your early 20s? You might have student loan debt to pay off as well, You'll benefit substantially from compounding interest over all those years , Banks typically offer young people higher interest rates, so you'll earn more interest, Banks typically offer young people lower interest rates, so you'll pay less in interest

Back

You'll benefit substantially from compounding interest over all those years

Front

You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for… A new cell phone, college tuition, a house down payment

Back

A new cell phone, college tuition, a house down payment

Front

The defining characteristic of a job in the gig economy is...

Back

Workers complete short-term work for many different clients

Front

Which represents the BEST time to start saving for your retirement? Options: As soon as you have your first full-time job, Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage, Right after you pay off your student loans, At age 45, so you have exactly 20 years until retirement

Back

As soon as you have your first full-time job