which of the following is NOT a common feature of a financial institution?
access to investment products, investment trading, access to investment advice
which of the following statements about check cashing companies is TRUE?
they charge high fees
which of the following financial institutions typically have the highest fees?
check cashing and payday loan companies
which of the following statements about check cashing companies is FALSE?
they charge low fees
which type of bank account typically offers the least (if any) interest?
checking account
savings accounts typically offer more interest than what type of account?
checking account
which type of bank account is best for everyday transactions?
checking account
t/f: a savings account that compounds interest daily will earn a higher return than a savings account that pays simple interest daily
true
which savings account will earn you the least money?
one that earns simple interest monthly
which savings account will earn you the most money?
one that compounds interest daily
why is it important to reconcile your bank statements?
to avoid spending more than what is in your account, to detect any errors in your account, and to determine if you were charged any fees
how can you avoid spending more than what is in your bank account?
keep your own records to compare with your financial institution's records
how would you reconcile your bank account to avoid spending more than you have?
compare your own records of your spending with your financial institution's records
what should you do before you withdraw money from the ATM?
inspect the ATM to make sure it wasn't tampered with
what should you do before you approach an ATM?
check for any suspicious people lurking nearby
what should you do before you use an ATM?
inspect the ATM and its surroundings to make sure it is safe to use
which of the following statements about savings account is FALSE?
savings accounts allow an unlimited amount of withdrawals each month
which of the following statements about savings accounts is FALSE?
savings accounts don't usually require a minimum balance, savings accounts don't usually pay interest on the money you deposit
which of the following statements is TRUE?
if there is a mistake on your bank account, you should contact your financial institution immediately
if there is a mistake with one of your bank accounts, who should you contact to resolve the issue?
your financial institution
if there is an issue with your bank statement or account balance, who should you contact to resolve the issue?
your bank
t/f: your financial institution can't help you if there is a mistake on your bank account statement
false
which of the following statements about investing is TRUE?
investing is riskier than putting money in a savings accounts
investing is best for...
long term financial goals like paying for retirement
which of the following statements about investing is FALSE?
investing is a guaranteed way to grow your money
a stock is...
a share of ownership in a company
a mutual fund is...
a type of investment that invests in a mix of different types of investments
which of the following statements about stocks is TRUE?
a stock is a share of ownership in a company
t/f: generally, the more education you receive, the higher your lifetime earnings will be
true
t/f: there is no relationship between the level of education received and lifetime earnings
false
for most careers, which degree will most likely result in the highest lifetime earnings?
bachelor's degree
what is net pay?
the amount of money you're paid after all taxes and deductions are taken out of your paycheck
net pay is NOT...
your gross pay plus any bonuses
which of the following is a possible tax or deduction that they may show up on your paycheck?
federal income tax, contributions to retirement savings, and FICA
which of the following is NOT a possible tax or deduction that could show up on your paycheck?
sales tax
which of the following is NOT a possible tax or deduction that could come out of your paycheck?
overtime pay
what is the purpose of the W-4 form?
to inform your employer of how much federal income tax to withhold from your paychecks to send to the IRS
when you start a new job, you fill out a W-4 form to...
to determine how much federal income tax your employer should withhold from your paychecks
your employer sends you a ___ form that tells you how much you've made and how much you've paid in taxes in the last year
W-2
which of the following statements is true about taxes?
they pay for schools and government departments, for roads and emergency services, and are often used at the federal, state, and local levels
how does the government pay for roads, schools, and emergency services?
they are funded through taxes
the ___ is a flexible market that allows you to work short-term, independent jobs
gig economy
what do you need in order to fill our your 1040?
your W-2, your routing and bank account number, and a record of any other supplemental income
what do you NOT need in order to fill out your 1040?
your employer benefits documentation
t/f: when considering a job offer, you should only consider how much you're being paid before you accept the offer
false
t/f: when considering a job offer, you should consider how much you're being paid and any other employee benefits before you accept the offer
true
t/f: how much you're being paid is the only thing you need to consider when considering a job offer
false
which of the following is NOT considered part of your benefits package available from your employer?
free technology equipment
all of the following may be a part of your benefits package available from your employer, except:
FICA
healthcare, paid time off, disability insurance, and matching contributions to a retirement account are all types of ___ available from your employer
benefits
which of the following is a benefit of using a budget?
helps to keep track of the money you receive, prioritize your spending, and reach short and long term financial goals
which of the following is NOT a benefit of using a budget?
it can help you purchase anything you want
which of the following should NOT be considered when setting current budget?
future income
which of the following should you consider when setting a budget?
your financial goals, needs and wants, and savings
___ are good places to look to find your current expenses when building your budget
bank and credit statements
in addition to needs, what should you plan for first when creating a budget?
recurring expenses
the envelope method, notebook and pencil, and online software are all methods of ___
tracking your spending
what is NOT true about emergency funds?
they are used for anything listed on the budget
which of the following is TRUE regarding unexpected expenses?
they should be planned for
how can you ensure you don't go over your budget?
round up our expense estimates to add a buffer
using a loan could help with the purchase of which of the following?
a house
which item is important to consider when selecting a credit card?
both APR and fees
what is a benefit of having a good credit score?
when you need a loan, you'll have more loan offers to pick from
secured loans are less costly than unsecured loans because ___
they usually have a lower interest rate, require collateral, and they are less risky for the financial institution
to maintain a good credit score you must ___
manage your debt wisely
recommended methods to protect yourself from identity theft and fraud include ___
placing a credit freeze with the credit bureaus
which of the following will help you protect yourself from identity theft and fraud?
regularly monitor your credit report, contact lenders and credit bureaus to address incorrect information, and freeze your credit
what is NOT a recommended method to protect you form identity theft?
expensive specialty locking or monitoring service
paying only the minimum balance on your credit card can lead to...
paying more interest
when looking for pre-approval on a car loan you should...
compare pre-approval offers and select the one that is best for you
what option will NOT be available if you are behind on loan payments?
you can ask to get out of your loan
what could be a good option available to you if you are behind on loan payments?
a financial institution may offer for you to pay a little now and pay the rest after your next pay day
what is a positive reason for using a credit card to finance purchases?
paying it off on time can help build your credit history
what is the best option for affording a BachelorÅ› degree?
attend a local community college whose courses transfer to the public four-year college
what is NOT considered an additional cost beyond tuition for higher education?
academic counseling
textbooks, transportation and room and board are all...
additional costs for attending a college or university
preparing to pay for higher education can start in 9th grade or earlier by...
opening a 529 plan
a 529 plan can help you ave more money than a traditional savings account because...
it is a tax free
what is NOT true about the Free Application for Federal Student Aid (FASFA)?
the earliest you can submit your FASFA is January 1st of each year
what is true about the FASFA?
you can submit it at the earliest of October 1 each year, the form is available online or paper, and sates may have different deadlines for applying state aid
list the 4 year colleges from least to most expensive...
in-state public university, out-of-state public univerisity, private university
what can affect whether a public or private university is affordable
the amount of financial aid that the university offers
what type of federal funding is free money, but is based on financial need only?
federal grants
everyone interested in post secondary education should complete the FASFA because...
it allows you to be eligible for federal student aid and other scholarships and grants
what is NOT a reason to complete the FASFA?
it allows you to be eligible for early admission
