WK4 QUIZ
PERSONAL FINANCE
WEEK TWO QUIZ
1. Which of the following is the smartest way to handle allowance for children and teens?
a. Pay your children and teens according to the work that they do.
b. Never pay for chores of any type, since children of all ages should be expected to help out as members of the family.
c. Increase allowance annually based on the child's age.
d. Give allowance when children have performed well in school or exhibited exemplary behavior.
2. When you talk to your children about money, you should strive to:
a. protect them from knowledge of bills and other weighty financial matters
b. instill a healthy fear of spending money on anything but necessities
c. give them positive messages about the value of earning and saving money
d. let them know that you are financially secure and can provide for all of their needs and wants, even if you cannot
3. Which of the following is the best strategy for bill paying in a family?
a. The head of household or person with the highest income should be in charge of paying bills.
b. The person with the greatest understanding of finances should be in charge of paying bills.
c. Take turns paying the bills on a rotating basis.
d. Pay bills together. It should be a family affair.
4. What are the consequences of withdrawing money from a 529 plan to pay for expenses not associated with higher education?
a. You must replace any withdrawals within 60 days or pay a 25% federal penalty tax.
b. You must pay income taxes on the earnings as well as a 10% federal penalty tax.
c. You may incur a tax if you withdraw more than half of the account.
d. There are no penalties as long as your adjusted gross income is below $110,000 (for a single filer) or $220,000 (for joint filers).
5. An accurate description of a 529 plan is:
a. a retirement savings plan offered by employers that allows you to save up to $17,000 a year tax-deferred
b. a tax-advantaged plan that allows anyone, regardless of
WEEK TWO QUIZ
1. Which of the following is the smartest way to handle allowance for children and teens?
a. Pay your children and teens according to the work that they do.
b. Never pay for chores of any type, since children of all ages should be expected to help out as members of the family.
c. Increase allowance annually based on the child's age.
d. Give allowance when children have performed well in school or exhibited exemplary behavior.
2. When you talk to your children about money, you should strive to:
a. protect them from knowledge of bills and other weighty financial matters
b. instill a healthy fear of spending money on anything but necessities
c. give them positive messages about the value of earning and saving money
d. let them know that you are financially secure and can provide for all of their needs and wants, even if you cannot
3. Which of the following is the best strategy for bill paying in a family?
a. The head of household or person with the highest income should be in charge of paying bills.
b. The person with the greatest understanding of finances should be in charge of paying bills.
c. Take turns paying the bills on a rotating basis.
d. Pay bills together. It should be a family affair.
4. What are the consequences of withdrawing money from a 529 plan to pay for expenses not associated with higher education?
a. You must replace any withdrawals within 60 days or pay a 25% federal penalty tax.
b. You must pay income taxes on the earnings as well as a 10% federal penalty tax.
c. You may incur a tax if you withdraw more than half of the account.
d. There are no penalties as long as your adjusted gross income is below $110,000 (for a single filer) or $220,000 (for joint filers).
5. An accurate description of a 529 plan is:
a. a retirement savings plan offered by employers that allows you to save up to $17,000 a year tax-deferred
b. a tax-advantaged plan that allows anyone, regardless of