Student Application

1. Being on a budget means:
 

• a. You pay bills every month at the due date.
• b. You made a plan of your expenses to be less or equal to your income.
• c. You are earning enough money to be able to live well
• d. Your bills are generally paid
• e. Your bills

2. How often can you get a free credit report?
 

• a. Once a year
• b. Once every 6 months
• c. Once every 2 years
• d. Twice a year
• e. You can’t get a free credit report

3. Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?
 

• a. When you’re going out on a Saturday with friends
• b. When you need a vacation  
• c. When some clothes you like go on sale
• d. When you want to invest the money and feel you could make more than the interest you are paying
• e. When you need to buy a car to get a much better paying job

4. What is the difference between a job and a career?
 

• a. A job is in a for-profit business; a career is in a not-for-profit business.
• b. A job is always 8 a.m. to 5 p.m.; in a career, you are not on a time clock.
• c. A job is work for you to earn money; a career is a commitment to work in a field or industry
• d. A job is 40 hours a week; a career may exceed 40 hours/week.
• e. A job is temporary; a career is permanent.

5. What is an advantage of enrolling in your employer’s 401(k) or 403(b) plan?
 

• a. The amount you choose to contribute is automatically deducted from your paycheck and deposited in your employee credit union account.
• b. The amount you choose to contribute is automatically deducted from your paycheck and deposited in your savings account.
• c. The amount you choose to contribute is automatically deducted from your paycheck and is sent to the Internal Revenue Service (IRS) to apply to your taxes for that year.
• d. The amount you choose to contribute is automatically deducted from your paycheck and is not subject to tax until it is withdrawn--usually at retirement age.

6. Robbie buys a bottle of water from the vending machine for $1.25 and a candy bar for $1.35 every day he arrives at his after-school job. Robbie makes $6.50 per hour and works for four hours each day. What percentage of his after-school gross pay is he spending for bottled water and candy?
 

• a. 2.6%
• b. 5%
• c. 10%
• d. 12.6%

7. What does “pay yourself first” mean?

• a. Setting aside a fixed amount as savings before spending income on other items.
• b. Paying your bills before loaning money to others.
• c. Depositing your paycheck on the first of every month
• d. Spending money for things you want before paying for monthly expenses.

8. What are some of the key factors in choosing a college? Check all that apply

• a. School Size
• b. Cost
• c. Location (In or out of state)
• d. Type of Degree
• e. Future Job

9. Which of the following is a liability? Check all that apply.

• a. Home mortgage
• b. Credit card balance
• c. Car loan
• d. Student loan

10. Which of the following do you need to open a savings account?

• a. Birth Certificate
• b. Valid Government-issued photo ID
• c. Credit Card
• d. GPA

11. Which is NOT a factor in determining your credit score?

• a. Missing credit card payments
• b. Having too much debt
• c. Having established lines of credit
• d. The amount of money in your bank account

12. What is diversification for an investment portfolio?

• a. Having many people invest into a company
• b. Having a positive stock portfolio
• c. Investing in multiple companies in different sectors
• d. Investing more in one company, so you can a larger profit per transaction

13. What is a circle of competence?

• a. The products, companies and sectors that you know the most about
• b. The people you choose to invest with
• c. The 500 companies with the highest market value
• d. The stocks that you end up trading (buying/selling)

14. Which of the following types of loans usually have the lowest interest rates?

• a. Subsidized Federal Loans
• b. Unsubidized Federal Loans
• c. Private Loans
• d. Credit Cards