PFL UNIT 4 SUMMATIVE

Saving money for which of the following is a wise long-term financial goal?

• Saving for a concert ticket

• Making student loan payments on time every month

• Getting loan extensions

• Opening credit cards

What does variable expense mean?

• The amount is the same every time

• The amount is not important

• The amount changed every time

• The amount does not factor in taxes

If the emergency fund runs out, what is a recommended way to pay for medical expenses?

• Borrow heavily to pay

• Skip rent payments

• Get a second job

• Ask for a payment plan option

If you receive a bonus from work of $1,000, what should you do with that money in a “Pay Yourself First” budget?

• Put a percentage into savings

• Plan a trip

• Put it in an envelope

• Donate it to charity

What is a long term financial goal?

• A weekly goal

• A monthly goal

• A bi-weekly goal

• An annual or longer goal

Identify the positive effect of combining finances with another person?

• Negative checking account balance

• Missing rent and bills

• Taking out loans in your name

• On time bills help credit scores

How do pooled resources help people that combine finances?

• Economies of scale reduce costs

• Credit scores double up

• Car pooling costs more gas

• Combining rent increase price of mortgage loans

Which of the following are financial choices that do NOT affect another person?

• Education

• Library Card

• Insurance Benefits

• Residence

Which of the following is a motivation for donating to charity?

• Profits

• Income

• Helping oneself

• Building a network

Charities that do not have ________ should not be considered legitimate.

• Buildings

• Warehouses

• Accreditation

• Board of Trustees