Financial Literacy Test with Answers

How much time will you spend in the classroom between first grade and by time you graduate high school? - 15,000 and 20,000 hours The average career will last _____________hours. - 86,000 hours True - True or False? People who love their jobs tend to be much happier than people who hate their jobs, no matter how much money they make. What is "take-home pay?" - The amount of money you take home after taxes. What four items are being withheld from your paychecks? - Federal income taxes, social security taxes, Medicare taxes, and state income taxes Why are federal and state taxes withheld? - It helps pay for public schools, community and technical colleges, universities, and the teachers who work for those institutions. What does FICA stand for? - Federal Insurance Contribution Act What does OASDI stand for? - Old-Age, Survivors, and Disability Insurance What is the purpose of withholding Social Security? - To collect it all and give some of it back to us at an older age. At what age can you start collecting Social Security? - 67 or if one becomes disabled and cannot work. What is Medicare? - A health insurance program funded by some of your income taxes and it is run by the federal government. How much money do you have to make in one year in order to file a tax return? - $9,350 or more When are tax returns due? - On or before April 15th each year What does IRS stand for? - Internal Revenue Service List the four things you can do with money. - Spend it, save it, invest it, and give it away True - True or False? Most successful people worked part-time as teenagers. What is a need? - Something that is necessary to survive.