You earn a salary of $40,000 per year and decide to save 20% of your gross pay. You set a goal of creating a $16,000 emergency fund. How many months will it take for you to achieve your goal?
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Which of these costs would be the MOST difficult to adjust if you were looking to reduce your expenses?
Dining out at local restaurants
Ongoing loan payment on a car
Expenses for new clothes
Postponing a purchase for a big-screen TV
If you are trying to substantially reduce the amount you spend on food, you should try...
Cooking your own food at home for as many meals as possible
Dining at restaurants more often so you don't waste water doing dishes
Eating more snacks on the go and way fewer meals at home
Drinking more coffee and soda so you are not as hungry for food
Leila just graduated from college and is comparing a few different cities to move to. Which of these factors is the LEAST important thing for her to consider right now?
Average rent for an apartment
Food and grocery store options in the area
Employment opportunities
Average cost of Uber, Lyft, or taxi fare
Greg is trying to decide whether he needs a car when he moves to the city. Which of the following would be a reason for Greg to get a car rather than use public transportation?
There are several public transportation routes between Greg's apartment and work
The cost of public transportation is less than Greg’s monthly car payment
Greg’s company covers half the cost of his monthly public transportation pass
Using public transportation, Greg’s commute to work one-way is two hours
Which of these boxes of cereal has the LOWEST unit price?
Cereal A, which costs $3.20 for a 16 oz. box
Cereal B, which costs $5.00 for a 32 oz. box
Cereal C, which costs $2.50 for a 10 oz. box
Cereal D, which costs $4.50 for an 8 oz box
Isaiah has a summer internship at a technology company and is paid $3,000. After Federal and state taxes, Social Security, and Medicare are deducted, his take-home pay is $2,500. Which of the statements below is correct?
His gross pay is $2,500 and net pay is $3,000
His gross and net pay are $3,000
His gross and net pay are $2,500
His gross pay is $3,000 and net pay is $2,500
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. Which of the following is TRUE?
You have an extra $125 each month that you can spend on a fun or leisure activity
You can invest a portion of your monthly income into a retirement fund, as your expenses are well within your budget
You need to either cut back on your spending or find an additional source of income to balance your budget
You have room in your budget to make philanthropic donations to your favorite charity
You are interested in renting an apartment after graduating college in Chicago. You meet with the landlord and complete the application. All of the following may need to be provided when you sign your lease EXCEPT
Proof of employment
An acknowledgement you will have a credit check done
First and last month's rent
A security deposit
All of the following are good budgeting strategies if you want to save money at the grocery store EXCEPT:
Focusing on unit price when comparing similar products
Building a weekly meal plan around items you already own or items that are on sale that week, rather than just choosing foods you'd like to eat
Focusing only on the price when comparing similar products
Preparing a grocery list before you go to the store and avoiding buying items that aren’t on the list
For two months in a row, Aaron realizes he has gone over budget by roughly $175. Which of these options makes the most sense for him to fix his problem?
Cancel one of his streaming video subscriptions and go out to dinner three fewer times each month with friends
Start paying just the minimum monthly payment on his student loan and credit card debt, instead of the extra he's been contributing
Contribute $100 less to savings each month and $75 less to his retirement fund
Sell his current car and get a less expensive vehicle
You're considering moving into a 3-bedroom apartment with 2 roommates, rather than living on your own post-college. Which of your expenses would likely decrease by having roommates?
Groceries and eating out
Rent
Cell phone bill
Bedroom furniture
Danaisha does all her grocery shopping at organic markets and has a monthly grocery bill of $325. Charles says that Danaisha is wasting her money on wants instead of focusing on needs. He buys in bulk, uses coupons, and shops at Save-More for a monthly bill of $195. Who's budgeting correctly for food?
a. Danaisha, because she is focusing on her health, which will have a guaranteed payoff in the long run
b. Charles, because he's taking efforts to save money by focusing on his needs only
c. Both, because needs vs wants are determined on an individual basis
d. Neither, because they should meet in the middle somewhere. Charles should focus more on health, and Danaisha should cut her spending.
When living in a rural area, you are most likely to…
a. Rely heavily on public transportation like buses and trains for daily commuting
b. Often walk or bike to most destinations due to close proximity of amenities
c. Frequently use ride-sharing services for everyday travel
d. Depend mostly on personal vehicles, such as cars or motorcycles, for transportation
You overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT:
a. A budget can help you identify any bad spending habits
b. Using a budget can allow you to work towards your financial goals
c. Having a budget can help you create an emergency fund
d. Having a budget is a requirement for obtaining a mortgage
Which one of these expenses most likely represents a VARIABLE cost in someone's budget?
a. Electricity bill
b. Rent
c. Car insurance premium
d. Student loan payment
Now that Sanjana is done with college, she is trying to decide whether or not she should buy a new laptop for herself. She has made a preliminary list of questions she can ask herself to determine if the new laptop is a need or a want. Which of the following questions would you ELIMINATE from this list?
a. Can I afford this laptop right now?
b. Is this the right time to buy this laptop or will it likely be on sale later?
c. What model laptop is trendy right now with people my age?
d. How am I going to pay for this laptop? If I have to charge it or take out a loan, can I afford the monthly payments?
Which of the following is TRUE about a lease agreement?
a. A lease is an agreement between you and your roommates that you submit to the apartment owner.
b. You never have to pay any fees when you sign a lease. If you do, that means it is a scam.
c. A lease often has information about your prior housing experience; it's a record that the apartment owner can use to see if you are a good candidate.
d. A lease is an agreement that includes details about rent, apartment policies, vacating, etc.
One way the grocery store tricks you into spending more money than you budgeted for is...
a. Being open early in the morning and late at night
b. Paying their cashiers and baggers more
c. Putting high priced items at eye level and lower cost items above or below eye level
Janine is considering what auto costs she is going to have after buying a new car. She has budgeted enough money for the monthly auto loan payment, gas, and auto insurance. Has Janine factored in all of the costs associated with car ownership?
a. Yes, these are the three costs she should expect to pay once she is a car owner.
b. No, she does not need to include the cost of auto insurance as it is included in her auto loan payment.
c. No, she needs to factor in other costs such as maintenance, emergency repairs, etc.
d. No, she does not need to include the cost of gas as it is covered under her auto insurance policy.
Which statement accurately describes how the 50/20/30 Rule would break down your take-home pay?
a. 50% on wants, 20% on saving, and 30% on needs
b. 50% on saving, 20% on needs, and 30% on wants
c. 50% on needs, 20% on saving, and 30% on wants
d. 50% on saving, 20% on wants, and 30% on needs
A good rule of thumb when budgeting for a home is to expect to make a _______ down payment.
a. 5%
b. 10%
c. 20%
d. 35%
What are the two most important factors in calculating your credit score?
Payment history and types of accounts
Amounts owed and length of credit history
Payment history and total debt
Length of credit history and new credit inquiries
All of the following would show up on a credit report, EXCEPT...
Salary of your current job
Payment history of your car loan
Credit card payment history
Student loan activity
Heather realized she has taken out too much debt and it has started to negatively impact her ability to budget. She has decided to pay off this debt in full as soon as possible. All of the following would be beneficial strategies EXCEPT:
Reducing spending by canceling some of her streaming subscriptions
Taking extra shifts at work to increase her income
Making more than the minimum required payment on her debt
Applying for another credit card to use in case she runs out of cash paying off her debt
Your friend confides in you that he has a low credit score. What is the single best way for him to improve his score?
Cancel his credit cards
Make on-time payments
Get a car loan
Check his credit score
How can debt increase a person’s net worth?
The more debt you take on, the higher your credit score.
Debt allows you to buy valuable assets, like a house.
Using debt, you can spend more than you earn.
Debt increases your liabilities, like your credit card balance.
Who tracks all of your credit information?
a. Credit reporting agencies (Equifax, Experian, and TransUnion)
b. Federal government
c. Consumer Financial Protection Board (CFPB)
d. Lenders
You find an error on your credit report: Your credit card account indicates that you are 60 days late on your payment, but you have bank records indicating that you have always made on-time payments. What should you do FIRST?
a. Contact the credit card company to have them fix it
b. Contact the credit reporting agency
c. Wait a few weeks to see if it gets resolved
d. Call the police to report the possible identity theft
Which of these represents a potential consequence of neglecting to pay your federal student loans?
a. Wages or tax refunds can be garnished
b. Passport revocation
c. Driver’s license suspension
d. Termination from your job
What benefits do you receive by taking out a loan with a cosigner?
a. You don’t get penalized for late payments
b. You get a discount on future loans after this one is paid off
c. You have a better chance of getting approved and getting a lower interest rate if the cosigner has good credit
d. You automatically get the same credit score as the cosigner once the loan is paid off
Which free credit report service is authorized by federal law but only accessible once per year?
AnnualCreditReport.com
Credit Karma
Credit Wise
Wallet Hub
How can your credit score impact your financial well-being?
Only consumers with high scores are approved for credit
Consumers with low scores get lower interest rates on loans than those with high scores
Your credit score can determine whether you are approved for a loan and what the interest rate on that loan will be
It generally has no impact on your financial situation
Your friend, Nabila, has a virtual interview tomorrow and is extremely nervous. Nabila should do all of the following things to prepare for her virtual interview EXCEPT...
Test all of her technology including internet connection and audio
Dress as comfortably as possible; since this is a virtual interview, professional dress is not necessary
Ensure she has a clutter-free background
Maintain positive body language during her interview such as good posture and eye contact with the camera
Which of the following suggestions is the BEST tip for career development?
Wait to enroll in a 401(k) for as long as possible.
Stay at each position for at least 7 years.
Continue to develop new skills throughout your career.
Only update your LinkedIn when you’re job hunting.
In the United States, why is it often considered a good financial decision to go to college, even though a college degree is expensive?
College graduates always hold higher-paying jobs than high school graduates.
College graduates have higher average lifetime earnings than high school graduates.
Most people don’t graduate with student debt.
After paying tuition, students will have a partial ownership stake in a valuable university.
Reign is a freelance personal trainer. Their work includes advertising their business, training clients, and handling billing. Reign would best be described as…
A self-employed worker
A full-time employee
An intern
A business partner
Avery is a recent college graduate with a degree in marketing. She wants to expand her professional network. All of the following strategies would help her expand her network, EXCEPT…
Attend a conference
Complete a self-assessment
Set up informational interviews
Join a professional association
All of the following are hard skills EXCEPT...
Coding
Accounting
Carpentry
Adaptability
What is the purpose of a resume?
To list all of your interests
To highlight your work experience and qualifications
To provide a list of references
To show off your social media profiles
Which of the following is a TRUE statement regarding employee benefits?
All employers offer the same employee benefits, so there is no need to review benefits when you are offered a job
Employee benefits always cost you extra money, so it is important to choose only a select few when accepting a job position
It is possible for a job with a lower salary to have a better total compensation package when employee benefits are included
Jobs offering a higher salary always offer better employee benefits
Which of the following is the best strategy when using an online job board?
a. Submit your resume to every job posting, even when you're not really interested in the job.
b. Set up a profile, set filters on which types of jobs you're looking for, and sign up for alerts.
c. Limit your activity on job boards to once or twice a month so you don't get overwhelmed.
d. Search for specific job titles you desire or specific companies you'd like to work for, but not both.
All of the following are good ways to convince your boss you deserve a raise, EXCEPT...
a. You met or exceeded all of your performance targets over the last year.
b. You’ve taken on responsibilities outside of your job description.
c. Your landlord raised your rent and you need more monthly income.
d. You played a key role in advancing a goal of your organization.
What is the purpose of a 401(k) plan?
a. To pay for medical expenses.
b. To develop new skills relevant to your job.
c. To improve your chances of getting an interview.
d. To save for retirement.
Which of the following statements about careers is generally TRUE?
Your first job determines the rest of your career path
Hard skills are more important to employers than soft skills
The same skill set can be applied to different jobs
College is the only way to learn hard skills
All of the following are advantages of using LinkedIn, EXCEPT…
You can skip attending networking events and use LinkedIn instead
You can keep up with industry trends and thought leaders on LinkedIn
You can find a job or internship on LinkedIn
You can research potential future employers on LinkedIn
Which of the following statements is generally TRUE about the gig economy?
The majority of U.S. workers are in the gig economy
App-based gig work guarantees a higher salary than median full-time employment
App-based gig work makes it easy to start working and set your own hours
Gig work is more likely to offer health insurance and 401(k) benefits than a salaried position
Why should you personalize each thank you note you send after an interview?
To show that you’re a polite person
To make a lasting impression on each interviewer
To avoid offending anyone
Because it is required for most job interviews
All of the following are common benefits included in a job offer, EXCEPT…
401(k) retirement plan
Health insurance
Paid time off
Company LinkedIn
Annie is considering leaving her full-time job to be self-employed as a freelance graphic designer. She will have to take on all of the following new responsibilities, EXCEPT: