Personal Finance Flashcards
What two things are required to determine your net worth?
Assets and liabilities
What should a consumer pay most attention to when shopping for a savings account?
How frequently the interest is compounded
Which of the following answer choices are true about federal Stanford loans?
- They are the most common type of federal education loans.
- They come either subsided or unsubsidized.
What does it mean to reconcile a checking account?
To balance your checkbook with your bank statement
The federal Perkins loan is designed to benefit whom?
Students with financial need
Which one of the following is not a major type of loan available for post-secondary education?
Direct buy loans
What is withheld to pay for the payroll tax on your paycheck?
Social security and Medicare
What is the total amount of money an employee brings home after deductions in a pay period?
Net pay
What is the most important factor that affects your credit score?
Your payment history
When creating a household budget, which of the following would be considered a variable expense?
Entertainment
Mortgage payment
Car loan
College loan
Entertainment
A student is charged an extra 9% on their sales receipt at a local store. What is the reason?
Sales tax
What is the purpose of the w-4 form?
Allow the employer to withhold federal income taxes from an employee’s wage
Which of the following budget categories will be the largest percentage of a budget for most families?
Transportation
Insurance
Entertainment
Housing
Housing
The opportunity cost if a purchase tells you the cost of the purchase plus ______.
The cost of not doing or purchasing something else
It’s suggested to have _____ of living expenses in an emergency fund.
3 to 6 months
