FY Unit 6 Assessment

Why is it important to create a budget as a teenager?

• A budget is required to qualify for financial aid for college
• A budget makes filing your taxes faster and simpler
• A budget will help you save money and prioritize your spending
• A budget will guarantee you have enough money saved for college so you won't need loans

Net wealth is best defined as...

• The value of your home, car, and investments
• Reaching the top 10% of all households in the US
• The total of all of your assets minus the total of all of your debts
• Your monthly income minus your monthly expenses

If you are following a 50/30/20 Budget, what two items fall into the 20 category?

• Wants & needs
• Saving & debt repayment
• Income & expenses
• Fixed & variable costs

Why is it important to budget using your net pay, rather than your gross pay?

• Your net pay will be higher, giving you more spending money each month
• Your net pay will account for all the taxes and deductions that are removed each paycheck
• Net pay is better for teenagers and young adults, whereas gross pay pertains to adult earners
• Your total tax bill will be lower if you budget using your net pay

How do wages and salary differ?

• Wages describe what you earn on an annual basis
• Salary describes what you earn on an annual basis
• Wages mean you have a standard amount in each paycheck
• Salaried employees are likely to be paid for overtime

What is the purpose of an apartment lease?

• It provides insurance if any guests to your apartment are injured on the property
• It outlines the amount of rent you'll pay, when it is due, and key obligations and rights of living in the property
• It provides the budget you'll use for all of your household expenses
• It makes it illegal for your landlord to evict you from the property

Which statement about cost of living is TRUE?

• Most American cities have approximately the same cost of living
• Cost of living refers to what percentage of your city's population lives above the poverty rate
• Your life will be better if you live somewhere with a low cost of living
• Cost of living calculations take into account the prices of housing, transportation, food, and other basic needs

When selecting your car payment plan, the _____ your loan term is, the lower your monthly bill will be. However, your overall interest will be ______.

• shorter; higher
• longer; lower
• shorter; lower
• longer; higher

Which of the following package deals is a better buy according to unit price?

• $5.73 for 3 cans
• $11.44 for 8 cans
• $13.55 for 5 cans
• $14.28 for 6 cans

When creating a budget, which list below portrays expense categories in the most responsible order?

• All of your needs, high priority wants, low priority wants, savings
• All of your needs, high priority wants, savings, low priority wants
• All of your needs, savings, high priority wants, low priority wants
• Savings, high priority wants, low priority wants, all of your needs