Consumer Education Final Exam Review

Jenna is wondering how she can improve her Financial well-being.Which of the following would contribute the most to her financial well-being?

• Take a personal finance class to learn how to mange her money
• Pay her grandma back the money she borrowed to take a school trip lats year
• Talk to her friend about how to manage her money better.
• Open another checking account to help her organize her money

Megan's mother suggested that she was experiencing the consequences of her trade off regarding a decision she made to purchase a dress for prom. Which situation does Megan most likely find herself in for her mother to have made this comment?

• Had shopped at several stores when she found the prom dress of her dreams and purchased it. She used the money she had saved for the prom dress PLUS most of the money she had saved for replacing the tires on her car. Now the tires need replacing and Megan is short on the cash needed to do the job.
• Megan has shopped at several stores when she found her prom dress of her dreams. She checked online and found a coupon that enabled her 30% when she returned to the store to purchase the dress.
• Megan had shopped in several stores and found 6 prom dresses she liked a lot. She brought 2 friends shopping with her to tell her which one looked best on her. After much deliberation, she chose the dress that was least expensive of the 3 she like the best.
• Megan had shopped in the store her mother recommended for her prom dress. She found 2 dresses she liked a lot. Megan purchased the one that was most comfortable even though it cost $28 more than the other one.

Amber's academic adviser has asked her to set 3 academic goals for this semester. These goals are MOST LIKELY to be accomplished if:

• Amber discusses her goals with her parents.
• Amber lets her friends set her goals.
• Amber writes her goals down.
• Amber think about her goals weekly

Since Taylor was a young child she has kept her savings in a piggy bank. She likes this method of saving because she can have immediate access to the money if she needs it. Recently, in a class at school, discussion focused on why depository institutions are safer than her piggy bank. Some students' comments were based on fact while others were based on myths. Which aspect of security at a depository institution is NOT TRUE?

• Depository institution have insurance protection for up to 250,00 per depositor per account type so if something happen to the money in the bank, you would get it back as long as the deposited amount was no more than insurance limit.
• All money stored at a depository institution is kept safe all times by numerous security measure.
• Information about depository and their bank accounts is kept in secure data storage.
• Depository institutions have insurance protection. Depositors can have multiple accounts insured at the same depository institution as long as each account has no more than 100,000.

Dane is researching the topic of property taxes for a presentation he is doing in his Personal Finance class. He has come across the following statements he is considering adding to his presentation. Which should he EXCLUDE from his presentation because it is not correct?

• Property taxes are assessed at the same rate for all types of property, including homes, land and building, regardless of location or whether they are used for business or personal use.
• Property taxes are usually charged by state and local governments to pay for local schools and other services and expenses incurred by these governments.
• Property taxes are commonly paid automobiles. This tax usually paid once per year when the automobile is licensed.
• Property tax homes, land and buildings are usually only paid once or twice each year.

To increase his net worth, Jackson could:

• Increase his liabilities
• Decrease his assets
• Increase his market value
• Increase his asset

Amanda and Marcus just finished their Income and Expense Statement for last month. They discovered that they have a net gain. What does this mean and what should they do?

• Amanda and Marcus are spending more money than they are earning. They need to find a way to balance their income and expenses by spending less on non-contractual expenses
• Amanda and Marcus are earning more money than they are spending. They could place additional money in savings and/or spend it on other expenses.
• Amanda and marcus are spending more money than they are earning. One of them should consider getting a second job for a time to help boost their income.
• Amanda and Marcus are earning more money than they are spending. They should increase spending for non-contractual items bring their income into balance with the expenses.

Chase has decided to work with a spending plan so he can build up an emergency fund for when he is in college. He learned in class that he could probably reduce his spending the most by looking at his non-contractual expenses. Which of his expenses best fit that category?

• Cell phone bill, gasoline, and car payment.
• Internet bill, entertainment, and clothing
• Motorcycle payment, food, and cell phone bill.
• Gasoline, food, and entertainment.

Michael wants to develop a spending plan for himself to use during his final year of high school. What will he need to do as his FIRST step?

• Decide what income and spending categories would reflect his values, needs, and wants.
• Decide how much money he can spend for each of the bills he pays each month.
• Track his current income and expenses. If he has already created an Income and Expense Statement then he has completed this step.
• Develop a control system that will work with his life style.

Eric is writing a paper on the importance of investing in yourself and he is looking for a sentence to use as the thesis statement for his paper. Which sentence below would be the best choice?

• completing a college degree is the best way to prepare for a career.
• Education pays in higher earnings and lower unemployment rates.
• Human capital and transferable skills result from formal training.
• Investing in yourself to early can lead to a lower standard of living.