Personal Finance Starters

2nd 9 Weeks Starters:

Monday November 3, 2014

7. Lora is a high school computer and technology teacher. She enrolls in a computer class at least

twice per year to stay current on recent technology changes and updates. By continuing her

education, Lora is investing in her:

a. salary

b. human capital

c. family

d. interest inventory

8. Individuals with more formal educational training usually have:

a. higher estimated lifetime earnings

b. lower personal satisfaction

c. greater amounts of leisure time

d. more comfortable work environments.

  1. Tuesday, November 4, 2014
    The level of material comfort as measured by the goods, services, and luxuries you are able
    to purchase
  2. career cluster transferable skills standard of living human capital
  1. The skills, knowledge, and experiences possessed by an individual
  2. occupation career cluster human capital industry
  1. An activity through which an individual can earn money
  2. job industry career lifestyle
  1. Grouping of jobs that perform similar tasks
  2. occupation industry career lifestyle

Wednesday November 5, 2014
9. Zoe has been assigned by her school counselor to complete a career assessment. Which statement

BEST describes why her counselor has suggested she do this?

a. Her counselor wants Zoe to find a career that will provide a high level of income to support Zoe’s lifestyle and wellbeing.

b. Her counselor wants Zoe to match her skills, abilities, interests and values with a list of specific occupations.

c. Her counselor wants Zoe to conduct interviews with people in her area of interest to determine if she truly enjoys the career she wants to prepare for.

d. Her counselor wants Zoe to search for a career that will allow occupational flexibility and provide for possible career advancement as she gains more experience working in her selected career.

10. Joanna has arranged to complete a job shadow with a physical therapist to decide if this is a career

she wants to pursue. Which of her concerns is she MOST LIKELY to have answered as a result of her

job shadow?

a. The future outlook for physical therapy jobs

b. The amount of money physical therapists earn

c. Common tasks and typical daily activities

d. Opportunities for advancement in the career

Thursday November 6, 2014
11. Which statement WOULD NOT be true about the value of career research?

a. Everyone values different aspects of an occupation. One person might value the flexible

schedule a particular job offers and another might care more about the amount of training

that career might require.

b. Current job availability and the outlook for future employment are as essential to consider

as whether you have the skills, interest and abilities to pursue a particular career.

c. Opinions from different people working in the occupation should be considered before

ruling out a particular career.

d. There are many careers that would support your well‐being. Career exploration allows you

to find the one that pays the most so your well‐being is enhanced to the highest degree.

12. Career assessments help to identify:

a. the job an individual should have if he/she wants high well‐being

b. positions available in a particular occupation

c. fastest and slowest growing careers in a particular occupation

d. possible career areas related to one’s interests

13. In order to make an informed career decision, a high school student will want to:

a. commit to a profession that requires a college degree

b. choose a career that offers the amount of money desired

c. develop personal goals, complete a career assessment, and research careers

d. choose a training program that will guarantee employment after the course work is

completed

Monday November 10, 2014
Things you can do now to help you prepare for higher education.

What habits and skills will help you be more successful in higher

education?

Tuesday November 12, 2014
14. When Charles received his college placement test results, he is informed that he will need

remediation in math. Which situation IS NOT TRUE of Charles’ situation?

a. Charles will need to take at least one course because he is not college‐ready.

b. Since the remedial courses Charles must take will not count toward his degree , he needs to

take the courses but tuition is not charged.

c. Charles should have taken a placement test earlier in high school so he could strengthen his

academic skills before heading for college.

d. Remediation courses do not count toward his degree program so he may need to take

extra credits and his college degree may take longer to complete.

15. Which statement is TRUE regarding college‐level expectations for studying and completing

projects?

a. It is best to study alone in a quiet environment.

b. Plan backwards from major deadlines.

c. Multi‐tasking during study time develops the important skill of working while being

distracted, so it is okay to message with friends or watch TV while studying.

d. The busier your schedule gets, the more important it is to write down only the most critical

tasks to be done. Wasting time writing down smaller details is not recommended.

Thursday November 13, 2014
16. Erin has been in college for 2 years and has decided that the major she has been studying isn’t for

her. Changing her major and/or her college could result in:

a. a well‐rounded college degree.

b. the need for backwards planning.

c. losing credits for classes she has already taken.

d. remediation courses to make up for the change in majors.

17. David plans to apply for college in 2 years. His guidance counselor suggested that he begin adding

items to a ‘college/training application’ folder. Which items WOULD NOT be helpful as additions to

this folder?

a. copies of awards and achievements he earns

b. a list of all the extracurricular activities he gets involved in

c. a resume of all community service and volunteer work he is actively involved in

d. copies of his elementary and middle school report cards

Friday November 14, 2014
Sequences of increasingly advanced courses designed to bring academically underprepared students to the academic skill level expected when entering higher education

  1. grant grace period remediation net price

Monday November 17, 2014

18. As Jonah plans for his future, his family has challenged him to create a SMART goal for his career

education and training. Which question is the LEAST IMPORTANT one to consider at this point?

a. What kind of training and education do I need and how much will it cost?

b. Is there a career pathway available if I continue my education and training?

c. Can I get the education and training I need near where I currently live?

d. Will a job be available and will I earn enough in my career to pay for the education and

training it requires?

19. Mallory has set a career goal of becoming a veterinarian but does not have the money to complete

this goal without taking out very large student loans. She decides to attend a 2‐year program in to

become a veterinary technician, and then work for 3 years in that field while she saves money for

her remaining 2 years of college and veterinary school. Mallory’s plan is known as a/an:

a. Career pathway b. Opportunity cost c. Debt‐to‐income ratio d. SMART goal

Tuesday November 18, 2014
20. The ______of continuing your education is the money you would have earned if you

have worked instead.

a. Debt‐to‐income ratio b. Opportunity cost c. Benefit d. total estimated cost

21. It is recommended that your educational loan payments require no more than 10‐15% of your

estimated starting income. To calculate this amount, students need to calculate the ______of

their education and training.

a. Opportunity cost b. Career pathway c. Benefit d. Debt‐to‐income ratio

Wednesday November 19. 2014
A strategy in which you start with the end goal and plan backwards to determine the steps
needed to get to that end goal

backwards planning career pathway debt-to-income-ratio job outlook

career pathway → A series of connected education and training programs that allow you to secure a job and
then to advance within an industry or occupation

True False

Thursday November 20, 2014
Investing in human capital is important for career development because

• / An investment in one’s human capital lasts a lifetime.
• / A person becomes less marketable based upon continued training.
• / Only a few people can afford to spend large amounts of cash to buy a job.
• / It allows a person to have lower estimated lifetime earnings.

Which type of information found in The Occupational Outlook Handbook can be accessed through the Internet?

a.Education needed in high school b.Statistics on graduation rates c.Description of classes offered in college d.Potential earnings for a career

Friday November 21, 2014
22. Sean plans to attend college in 2 years. He and his family have saved some money to help pay for it

but he want to explore ways he can receive money he WON’T need to repay. Which set of options

below should he explore?

a. Federal Perkins Loans, PLUS and local bank loans b. Federal Student Grants, PLUS Loans, and scholarships

c. Pell Grants, Work‐study, and scholarships d. Work‐study, scholarships and PLUS Loans

23. Direct Subsidized Stafford Loans offer some features that are different when compared to

borrowing money from a bank to pay for college. Which of the following is NOT difference between

of a Direct Subsidized Stafford Loan and a typical bank loan?

a. Interest rates for Stafford loans tend to be higher because the loans are held for a relatively

long period of time.

b. Stafford Loans have deferment options. c. Stafford Loans typically have a grace period.

d. Student families must complete a FAFSA (Free Application For Federal Student Aid) in order

to apply for a Stafford Loan.

Monday November 24, 2014
24. Carson’s family has always struggled financially due to his parents’ leaving high school before

graduating and working lower paying jobs to support the family. His parents don’t want him to

make the same mistake and are encouraging him to apply for scholarships and any type of student

aid he might qualify for. Which application will determine which typed of need‐based aid he will

qualify for?

a. Perkins Federal Loan Application b. Direct Subsidized Stafford Loan Application

c. Federal Work Study Application d. Free Application for Federal Student Aid (FAFSA)

25. Jaimen is struggling to make his student loan payments after college. He is considering defaulting

on the student loan. Which is not a potential consequence if he decides to default on the student

loan?

a. He could be denied credit cards, car or home loans, or apartment leases.

b. The bank could refuse to allow him to open a checking account.

c. He may not be able to obtain a marriage license. d. His wages may be garnished.

Monday December 1, 2014
26. Sarah learned in her Financial Education class that she needs to consider the Cost of Living when

comparing job offers. Which statement is most accurate?

a. How much she will spend in moving expenses to re‐locate to the city where her new job is.

b. The average cost of basic necessities, such as housing and food in the city where her new

job is.

c. The total value of the benefits package she will be offered in her new job.

d. The total amount of her college costs compared to the salary she is being offered in her

new job.

27. The average cost of basic necessities, such as housing and food for a particular city is call the:

a. Standard of Living b. Lifestyle c. Cost of Living d. Economy of Living

Tuesday December 2, 2014
28. Steven is considering taking a job with a company that is offering gym memberships, flexible hours,

repayment of education loans, merchandise discounts, and childcare. These components of the job

offer are called:

a. employee benefits b. job perks c. work incentives d. competitive hiring practices

29. To be considered for lifelong employment a person must continually maintain their employability.

Three actions below will help to maintain employability. Which one WILL NOT?

a. Maintain high standards in honesty, reliability, and punctuality.

b. Adjust your actions to be appropriate for different situations you find yourself in, because

you realize that what is appropriate in social situations is not necessarily appropriate in the

work environment.

c. Continue to learn by taking classes and striving for continual improvement on the job.

d. Seek ways to blend your personal and professional images online to enable current and

future employers to see that you have a varied and interesting life both in and outside of

work.

Wednesday December 3, 2014
30. Susan is currently working in Kansas City, MO earning $30,000 per year. She is offered a position in

Indianapolis, IN earning $32,000 per year. If Kansas City’s Cost of Living Index is 100 and

Indianapolis’ Cost of Living Index is 125, which is true?

a. Susan will have more spending power if she moves to Indianapolis.

b. Susan will have more spending power if she stays in Kansas City.

c. Susan will have the same spending power in Indianapolis as she has in Kansas City.

d. There is not enough information to decide.

When Rob graduated from college he considered two different job offers before accepting his job as an

Accountant in the IT department of a local manufacturing plant. He loves that he can walk or ride his bike to

work each day. He also loves to travel and his job will require him to travel several times each year to

conduct audits in manufacturing plants throughout the US, Europe, and Asia. He receives a monthly salary

and his employer pays his health insurance. His employer also matches the funds he saves in his personal

retirement account. Rob has always been very healthy but he appreciates knowing that he has several days

of paid sick leave each year if he needs them, along with 1 week of paid vacation. His company is

encouraging him to complete the classes he needs to earn his CPA by paying for half of the tuition for the

classes he needs to take. Answer the following questions about Rob and his job:

31. Rob’s parents asked him what employee benefits his employer was providing. Which would be

considered

a. monthly salary b. location within walking distance of his apartment c. paid sick leave d. travel opportunities

32. When Rob compared the Cost of Living Index for the city he currently lives in with the city where

the other job was located, the index for his city was 106 and the index for the other city was 78.

Which statement is most likely to be TRUE?

a. Rob chose his current job because the Cost of Living Index indicated that it would be cheaper to live in his current city that it would have been in the other city.

b. Rob chose his current job for reasons other than a lower cost of living.

c. The cost of re‐locating to the other city increased the cost of living there so Rob chose to live in his current city.

d. Even though the job in the other city offered a higher salary, it wasn’t enough to make up the difference for that city’s higher cost of living

Thursday December 4, 2014
33. Jamie has elected to be paid by direct deposit at her new job. This means _____.

a. She will receive her paycheck mailed directly to her each pay period.

b. She will receive her pay directly into her checking account at her depository institution for

each pay period.

c. She will receive her pay automatically loaded onto her payroll card at the end of each pay

period.

d. She will receive her paycheck delivered directly to her at her place of employment at the

end of each pay period.

34. Gross income – deductions = ______

a. Social Security b. Medicare c. net income d. employee benefits

35. Shannon is reviewing her pay stub to determine how much money she earned before her

deductions were subtracted. Which column should she check to find this amount?

a. Net Income b. Hours and Earnings c. Employer Contributions d. Gross Income

36. The most secure method for an employer to pay employees is to use:

a. direct deposit b. payroll card c. printed paycheck d. in‐store credit

Friday December 5, 2014
37. Hunter has been offered a job by a local mechanic who has offered to pay him in cash rather than

by paper paycheck, direct deposit, or payroll card. Hunter is excited that the amount of money he

will take home each week will be larger since his employer won’t be deducting any taxes from it.

His employer wants to hire him for the 10 weeks of his summer break and expects to pay him $300

per week. Which statement below is most likely to be true?

a. Hunter will not need to pay taxes on the income from his summer job because the total

amount he will earn is under the amount required for federal tax deductions.

b. It is illegal for Hunter to receive payment for his work in cash. He could be fined for doing

so.

c. Hunter will need to pay his federal and state taxes on his own since his employer is not

paying these required taxes for him.

d. Hunter’s employer is doing him a favor by offering to pay him in cash. Hunter will

potentially earn more by this method of payment.

38. The regular schedule that employers pay their employees is called the ______.

a. worker’s compensation

b. pay period c. employee benefits d. employer contributions

39. Ally learned in her Personal Finance class that some paycheck deductions are required and others