Simplified Guide to Financial
Life Skills
Final Test
Guidelines
To complete your test, please fill out the name, client #, and date fields. You must answer all questions. There is only one correct answer per question, so please check only one box per question. When you are done answering all questions please click the submit button at the bottom of this page. There will be a completion certificate mailed to you upon successful completion of the final test.Name: Client ID# Date: Phone Number:
1. When setting financial goals for your family, they should include which of the 3:
a. Immediate Goals
b. Short Term Goals
c. Long Term Goals
d. None of the above
e. All of the above2. When trying to determine whether or not you need financial counseling, you should ask yourself:
a. Am I saving on a regular basis.
b. I am borrowing money to pay bills.
c. I am not paying my bills on time.
d. All of the above3. When trying to increase your income, you should try one of the following:
a. Using a budget. b. Working extra hours.
c. Answers 'a' & 'b' are correct. d. None of the above4. Why is a budget important?
a. It is a tool to help manage your family's money.
b. It will keep you in control of your spending, instead of letting your spending control how you live.
c. Answers 'a' & 'b' are correct.
d. None of the above5. When working on the monthly "Budget Worksheet" within the Life Skills Book, the Fixed Expenses include the following types of bills:
a. Mortgage/Rent b. Telephone
c. Recreation/Entertainment d. Answers 'a' & 'b' are correct6. Goals should be a part of setting up your budget?
a. True b. False7. Based on the "Family Income Percentage Guide" within the Life Skills Book, what percentage of Savings should go towards your Net Income if income is close to $24,000 per year?
a. 2% b. 5% c. 10%8. When should you start preparing for your financial future?
a. When you turn 30.
b. When you turn 40.
c. When you start a family.
d. Everyone should start now, no matter what your age.9. Four things in which you should identify in your will are 1-Executor 2-List of your property 3-List of your beneficiaries and 4-Choose a guardian which will care for your children.
a. True b. False10. The 3 C's of Credit are, Character-Do you pay your bills on time?, Capacity-What is your ability to pay back the loan?, Collateral-What is the security to back up the loan?
a. True b. False11. A Credit Report can be used for the following:
a. When trying to rent a new place. b. When applying for a new job.
c. When trying to purchase a new home. d. All of the above.12. When looking to borrow money, you should do the following:
a. Shop around for good interest rates.
b. Rates will vary from place to place depending on your credit.
c. You should look at a bank or credit union where you already have an account.
d. All of the above13. When working on a budget, you should:
a. Have one record keeper. b. Do it a certain time of each month.
c. Make it a joint family affair. d. All of the above14. There are two basic types of debt:
a. Unsecured b. Secured
c. Neither of the above d. Answer 'a' & 'b' are correct.15. When working with creditors, you should:
a. Only promise a payment of what you can send and then send it.
b. Call your creditor if you will be late or have to miss a payment.
c. Answer 'a' & 'b' are correct.16. You can receive information on your credit from:
a. TransUnion b. Experian
c. Equifax d. All of the above.17. A Net Worth Statement, of which there is one for reference in the Life Skills Workbook, should contain the following items:
a. Assets b. Liabilities c. Both 'a' & 'b' are correct.18. What are your payment options on a credit card account:
a. Pay the total amount you owe.
b. Pay the minimum monthly payment required.
c. Pay more than the minimum monthly payment required.
d. All of the above.19. Credit Cards should be used with the intention of:
a. Paying them back within a short period of time.
b. Paying them back by the end of the month.
c. Knowing you will be charged interest if you do not pay in full by the end of the month.
d. All of the above.20. Per the "Rule of 72" within the Life Skills workbook, if you were to earn 10% interest on an investment of your money, according to the chart, it would take you how many years before it doubled?
a. 72 years b. 7.2 years c. 4 years21. Gross Income is the amount that you take home after deductions are made by your employer.
a. True b. False22. Periodic expense can include:
a. Homeowner's Insurance b. Car Insurance
c. Taxes d. All of the above23. A Savings account could include which of the following:
a. Credit card b. CD
c. Bank loan d. None of the above24. The largest factor that is calculated into a credit score (35%) is:
a. Payment history b. New credit
c. Collection accounts d. None of the above25. What credit score is the cut off point for high risk?
a. 350 b. 620
c. 700 d. 50026. State law requires that you carry car insurance.
a. True b. False27. The health insurance plan that allows you to choose your own doctors within a network of healthcare providers is a:
a. HMO b. PPO
c. Reimbursement d. None of the above28. Which of the following factors could affect how much you pay for Life Insurance?
a. Tobacco use b. Weight
c. Poor Medical History d. All of the above29. Renter's Insurance will cover damages if:
a. Property is stolen
b. Property is damaged
c. You break an item
d. Answers 'a' & 'b' are correct30. Disability Insurance will cover:
a. Missing a significant amount of work
b. A totaled car
c. A fire at your home
d. Expenses incurred because of a death