be realistic, have a target date & an associated cost

An important consideration when saving money for emergencies is

high degree of safety and liquidity

A good example of a well-stated financial goal is

Pay off $5,000 in credit card debt in two years

In terms of their finances, when a couple has a baby, they will

receive an additional tax exemption because of the baby.

U are single, a recent college graduate & just got a full-time job. Your first financial goal

establishing a fund for emergencies

When can Cathy (age 40) withdraw money from her IRA savings account?

With a 10% penalty on any money she takes out before age 59

An important consideration when saving money for emergencies is

high degree of safety and liquidity

Which of the following is necessary for successful budgeting?

The ability to adjust spending to money available

Financial plans need to

be changed during different stages in life

the basic principles that guide our actions and beliefs

Electricity and food expenditures are

variable expenses that change from one period to another

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W!SE Review - Money Management Part 2

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A review of concepts about Money Management to assist student preparing for the W!SE Financial Literacy Test

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Questions 21

Answers

1
U have a part time job delivering pizzas to raise money for college in 2 years. College is
one of your goals
one of your values
one of your hopes
one of your dreams
2
A well stated financial goal is
Realistic with a target date
A map of steps to be taken in the future
Logical and specific
Related to one's age group
3
Goals need to
be the same for all middle class families
be realistic, have a target date & an associated cost
Remain the same year after year, throughout life
Reflect current income
4
An important consideration when saving money for emergencies is
diversification
return on investment
high growth potential
high degree of safety and liquidity
5
A good example of a well-stated financial goal is
Buy a house
Become financially independent
Pay off $5,000 in credit card debt in two years
Buy a $25,000 car
6
In terms of their finances, when a couple has a baby, they will
receive an additional tax exemption because of the baby.
have to file a separate income tax form for the baby.
need to obtain a W-2 form for the baby.
automatically start paying Social Security for the baby.
7
U are single, a recent college graduate & just got a full-time job. Your first financial goal
establishing a fund for emergencies
buying a life insurance policy
buying a house
creating a stock portfolio
8
When can Cathy (age 40) withdraw money from her IRA savings account?
She made the deposits so she can withdraw it at anytime
Money cannot be withdrawn from an IRA before age 59
With a 50% penalty if she doesn't take money out at age 60
With a 10% penalty on any money she takes out before age 59
9
An important consideration when saving money for emergencies is
return on investment
high growth potential
high degree of safety and liquidity
diversification
10
Money set aside to grow is typically called
a budget
discretionary income
savings or investments
net income
11
Which of the following is necessary for successful budgeting?
The ability to adjust spending to money available
The location of your banks
A list of unexpected income
A copy of credit card report
12
Expenditures that remain constant from one time period to another are
Steady assets
Current expenses
Variable expenses
Fixed expenses
13
Financial plans need to
to be approved by an accountant
include income and eliminate risk
include income but not expenses
be changed during different stages in life
14
When deciding between two job offers with a similar salary offer, you should first consider
Reputation of the organization
Retirement and health plans
Tuition reimbursement and bonus potential
Travel time to work and the size of the organization
15
An example of a fixed expense is
Vacations
Restaurants
Entertainment
Apartment rent
16
In addition to monthly mortgage payments, each year a homeowner can expect to pay
a broker’s fee.
title insurance.
an assessment fee.
property taxes
17
Our values are
the basic principles that guide our actions and beliefs
what we want to achieve
our expectations of other people
the same as our goals
18
Ben's annual income is $30,000 & he put $3,000 in a traditional IRA. His taxable income is
$0 because he contributed to an IRA
$30,000
$27,000
$33,000
19
John's company will match his pre-tax contributions to the company's retirement plan. This is a
traditional IRA
Roth IRA
401(k)
defined benefit plan
20
Electricity and food expenditures are
personal expenses for an individual or family
variable expenses that change from one period to another
fixed expenses that remain the same from 1 period to another
discreet expenses that do not have to be paid monthly
21
Another term for the dollar amount of your paycheck after taxes and other withholdings is
Net income
Discretionary income
Gross income
Adjusted gross income

W!SE Review - Money Management Part 2 Flashcards | StudBud