ScienceEconomicsEverfi – Financial Literacy
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Everfi - Financial Literacy

Evie Wood avatar Evie Wood
25 July 2022
4.7 (114 reviews)
30 test answers

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question
W-4
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Tells your employer how much federal income tax to withhold from your paychecks to send to the IRS
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Benefits available from your employer
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Healthcare, paid time off, disability insurance, and matching contributions to a retirement account
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Gig Economy
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A flexible market that allows you to work short-term, independent jobs
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Possible tax or deduction which may show up on your paycheck
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Federal income tax, Contributions to retirement savings, FICA
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What do you need in order to fill out your 1040
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W-2, Your routing and bank number, A record of any other supplemental income
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There is no relationship between the level of education received and lifetime earnings (T/F)
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False
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W-2
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A document your employer sends you that tells you how much you've made and how much you've paid in taxes in the last year
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When considering a job offer, you should only consider how much you're being paid before you accept the offer. (T/F)
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False
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Net Pay
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The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is
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Good ways to track your budget
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Notebook and pencil, Online software app, Envelope method
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In your budgeting process, you look at recurring expenses before reviewing your wants (T/F)
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True
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Things to consider when creating a budget
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Charitable donations, entertainment expenses, and financial goals
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Bank statements, credit statements, and records of cash expenses help you to estimate your __.
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Expenses
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Rounding up your expense estimates to add a buffer with help ensure you don't go over your budget (T/F)
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True
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Benefits of using a budget
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Helps keep track of money you receive, helps to prioritize your spending, helps reach short- and long-term financial goals
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Unexpected expenses should be planned for (T/F)
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True
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Emergency Fund
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Helps you prepare for unexpected expenses
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What should you consider when setting a budget
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Needs and wants
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Going directly to a car dealer for a loan to keep things simple is a...
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Not great because they typically offer higher interest rates
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Using a loan could help you purchase a house (T/F)
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True
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What is a benefit of having a good credit score?
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When you need a loan, you'll have more loan offers to pick from
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To maintain a good credit score you must _____________.
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Manage your debt wisely
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A financial institution may offer for you to pay a little now and pay the rest after your next pay day if you are behind on loan payments (T/F)
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True
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Credit cards can help build credit history when paid off on time regularly (T/F)
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True
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If you are behind on loan payments, a realistic option is for you can ask to get out of your loan (T/F)
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False
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Access to investment advice is a common feature of a financial institution (T/F)
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False
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To avoid spending more than what is in your bank account, you should keep your own records to compare with your financial institution's records (T/F)
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True
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Stock
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A share of ownership in a corporation.
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Check cashing companies typically charge low fees (T/F)
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False
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If you pay your credit card balance in full each month, it will increase your credit score (T/F)
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True