1. Financial Literacy Test

2. List the 5 steps in the Decision Making Process
Identity the problem
Gather information and list possible alternatives
Consider consequences of each alternative
Select the best course of action
Evaluate the results

3. Financial planning is a ___thinking process____________ ______________________ that helps achieve goals

4. List the five steps in creating a Financial Plan?
Determine your current financial situation
Develop your financial goals
Identify your options
Evaluate your alternatives
Create and use your financial plan of action

5. What does a SMART goal stand for?
Specific
Measurable
Attainable
Realistic
Time-Limited

6. What is Gross Income?
Hours times rate of pay

7. What is Net Income?
Gross income minus tax deduction

8. What are the four taxes employers must deduct from your paycheck?
Federal Withholding
FICA
Medicare
Utah State Withholding

9. What does FICA stand for?
Federal Insurance Contribution Act

10. What is a W-4 used for?
Used to tell employer payroll department the amount of allowances for employee.

11. What is an I-9 used for?
Evidence of illegible work status

12. What does a W-2 show?
Reports taxable income and taxes withheld

13. How is a 1040 EZ different from a 1040?
Shorter version of 1040

14. What is an Entrepreneur?
Self-employed person

15. What is a spending plan?
A tool used to record and track projected and actual income and expenses over a period of time.
Also called a budget.

16. What is a check?
Access to funds in checking account

17. What does it mean when you bounce a check?
Insufficient funds

18. What is a checking account register?
Tracks checking account transactions

19. What does ATM stand for?
Automated Transaction Machine

20. What is a Debit Card?
Checking account access using card

21. What is a PIN?
Personal Information Number

22. What is Direct Deposit?
Paycheck deposit directly from employer to employee checking account

23. What is Bankruptcy?
All debt removed

24. What is Debt?
Amount owed to company

25. What is the Time Value of Money mean?
Money value in the future

26. What is insurance?
Damage coverage

27. What is compound interest?
Interest amount growing over period of time

28. What is an insurance premium?
Amount paid for insurance coverage

29. Banks and Credit Unions are FOR PROFIT
True
False

30. Define the word Usury.
The illegal action or practice of lending money at unreasonably high rates of interest.

31. Damon Williams loved to buy New Balance basketball shoes.
True
False