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NGPF Answers – All Semester Course Topics Covered
Below, we will be covering all quiz answer keys for NGPF important topics related to the semester course.
In case any topics are missing kindly let us know through the comment box below:
NGPF Taxes Answers
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NGPF Behavioral Economics Answers
Q. Behavioral economics
Ans: The subfield of economics that applies psychological insights into human behavior and explains economic decision-making.
Q. Cognitive bias
Ans: A subconscious error in thinking that leads to irrational decision-making.
Q. Loss aversion
Ans: The tendency to regard losses as considerably more important than gains of comparable magnitude.
Q. Sunk cost fallacy
Ans: The tendency to make decisions about a current situation based on what resources you have already invested in the situation.
Q. Endowment effect
Ans: The tendency to put more value on things you already own.
Q. FOMO (fear of missing out)
Ans: The tendency to feel anxiety/fear that an exciting or interesting event may currently be happening elsewhere, often aroused by posts seen on a social media website.
Q. Herd mentality
Ans: The tendency to conform to the behaviors and beliefs of the people around you.
Q. Confirmation bias
Ans: The tendency to search for information that supports our preconceptions and to ignore or distort contradictory evidence.
Q. Overconfidence bias
Ans: The tendency people have to be more confident in their own abilities.
Q. Hedonic adaptation
Ans: The tendency to return to a baseline level of happiness regardless of whether you go through a positive or negative experience or event.
Q. Overnight test
Ans: A strategy used to combat loss aversion by imagining that overnight something you own has been replaced with cash, then determining whether you would prefer to keep the cash or buy the item back.
Q. Sunk costs
Ans: Costs that have already been incurred and cannot be recovered.
Ans: When a person mistakenly believes they are better than others.
Ans: When a person believes they are better at something than they actually are.
Ans: When a person has an exaggerated certainty that an answer is correct.
Q. Social media marketing
Ans: The use of social media platforms and websites to promote a product or service.
NGPF Types Of Credit Answers (Basic Q&A)
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NGPF Managing Credit Answer (Basic Q&A)
Q. Annual Percentage Rate (APR)
Ans: The interest rate at which a credit card user will be charged on the unpaid portion of their balance.
Ans: A legal process that relieves debtors of the responsibility of paying their debts or protects them while they try to repay.
Ans: Attempted recovery of a past-due credit obligation or debt by a collection department or agency.
Ans: An agreement in which a borrower receives something of value now and agrees to repay the lender in the future, generally with interest.
Q. Credit Bureau
Ans: A company that collects and sells information about how individual people manage their credit (e.g. Equifax).
Q. Credit Counselor
Ans: A certified financial advisor who works for an accredited nonprofit specializing in helping consumers repay debt in a responsible manner.
Q. Credit History
Ans: A record of a person’s use of credit over time; your credit history plays an important role in determining your credit score.
Q. Credit Report
Ans: A document containing an individual’s financial information focusing on payment of their credit obligations over time.
Q. Credit Score
Ans: A three-digit number (ranging from 300-850) based on an individual’s credit history detailed in a credit report.
Q. Credit Utilization Rate
Ans: A measurement of your outstanding debt divided by your total available credit.
Q. Debt Snowball Method
Ans: A method of debt repayment whereby the borrower prioritizes paying down debts with the smallest balances first.
Ans: Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower’s credit score.
Q. FICO Score
Ans: The most commonly used credit score.
Q. High Rate Method
Ans: A method of debt repayment whereby the borrower prioritizes paying down debts with the highest interest rates first.
Q. Net Worth
Ans: A measurement of your assets (money you’ve saved or things of value you own) minus your liabilities (money you owe others); also called wealth.
Q. Thin File
Ans: A term used to describe someone with little to no credit history.
NGPF Investing Answers (Basic Q & A)
Ans: The process of setting money aside to increase wealth over time for long-term financial goals such as retirement
Ans: money put aside for future use; growing your money is not the top objective
Q. compound interest
Ans: interest earned on both the principal amount and any interest already earned
Q. simple interest
Ans: interest paid on the principal alone
Q. reasons to put money in a savings account
Ans: low risk & emergency fund
Q. tips for first-time investors
-> keep investments diverse
-> don’t be too risky
-> keep money invested for a long period of time
Q. stock exchange
Ans: a market for buying and selling stock
Q. two ways to profit from owning stocks
-> capital gains
Q. capital gains
Ans: The positive difference between the purchase price of a stock and its sale price.
Ans: payments of cash from a corporation to its stockholders
Ans: an owner of shares in a company
Q. risk of purchasing stocks
Ans: stock prices may drop
Ans: securities that represent part ownership or equity in a corporation
Ans: a certificate issued by a government or private company which promises to pay back a loan with interest the money borrowed from the buyer of the certificate
Q. what a bondholder receives
Q. asset allocation
Ans: the process of spreading your assets among several different types of investments to lessen the risk
Q. mutual funds
Ans: an investment program funded by shareholders that trade in diversified holdings and is professionally managed.
Ans: A collection of financial assets
Q. index fund
Ans: A mutual fund that tries to match the performance of a particular index by investing in the companies included in that index.
Q. S&P 500
Ans: market index of U.S. equities based on the performance of 500 large-cap stocks representing various sectors of the overall equities market
Q. financial planner
Ans: a professional consultant who provides financial advice for a fee or commission
Q. things to consider when picking a financial planner
-> history of success
Q. target-date fund
Ans: A mutual fund that automatically resets the asset mix of stocks, bonds, & cash equivalents in its portfolio according to a selected time frame that is appropriate for a particular investor
Q. factors to consider when picking a target-date fund
-> retirement date
-> investment preferences-risky or conservative
Q. retirement adjustments when getting close to retirement
-> decrease stocks
-> increase bonds
Ans: A retirement account is offered through an employer, where an employee can contribute money from his or her paycheck before or after taxes.
Q. vesting period
Ans: required length of employment to be eligible to receive company-paid pension benefits
Ans: a sum paid regularly to a person, usually after retirement
Q. 401 K matching
Ans: company will contribute money into a retirement account depending on how much the employee puts in
Q. profit sharing
Ans: incentive pay in which payments are a percentage of the organization’s income and do not become part of the employees’ base salary
Ans: income that is not subject to taxes immediately but that will later be subject to taxes.
Q. reasons why a person would pass on a 401K
-> company does not match contributions
-> you can not commit to keeping your contributions in the 401K until 59.5
Q. Roth IRA
Ans: an individual retirement account allowing a person to set aside after-tax income up to a specified amount each year. Both earnings on the account and withdrawals after age 59½ are tax-free.
Ans: a computer-based software wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners
Q. Exchange-Traded Funds
Ans: collections of stocks, bonds, and other investments that are traded on exchanges but are traded more like individual stocks than like mutual funds
Q. risk and return relationship
Ans: the higher the risk, the higher the return & the lower the risk, the lower the return
Ans: a person who is paid to buy and sell for someone else
Q. discount broker
Ans: a broker with low overhead who charges low commissions and offers little or no services to investors
Q. mutual fund manager
Ans: the person in charge of a pool of shareholders’ money invested in an assortment of different securities
Q. brokerage account
Ans: An account that lets individual investors trade stocks, bonds, mutual funds, etc.
Q. risk tolerance
Ans: how comfortable you are with the ups and downs of investing
Q. Traditional IRA
Ans: Individual Retirement Account – A personal qualified retirement account through which eligible individuals accumulate tax-deferred income up to a certain amount each year. Withdrawals are taxed
Q. factors that impact stock prices
-> news and anticipated news about a company
NGPF Insurance Answer
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NGPF Budget Answers (Basic Q&A)
Q. What role does a budget play in managing your personal finances?
Ans: Allows you to keep track of what money you have and where it is going. Goals!
Q. What type of expenses would be the MOST difficult to adjust?
Ans: FIXED Expenses
Q. Cheerios is $2.50 for a 10 oz. box. What is the price per ounce?
Ans: 25 cents
Q. True or False? A lease is an agreement between you and your roommates that you submit to the apartment owner.
Q. What is the difference between gross pay and net pay?
Ans: Gross is before payroll tax, the net is take-home pay
Q. Your budget for a new car includes your loan, gas, and insurance. List any other costs to budget?
Ans: Maintenance, Repairs, Tires, Oil Changes, Etc.
Q. Your salary= $40,000 You save 20% of gross. How long will it take for you save $8,000?
Ans: 1 year
Q. What does PYF stand for?
Ans: Pay Yourself First
Q. Why is PYF important? Give me an example.
Ans: Reach your financial goals. Save for a trip.
Q. What are 4 steps to creating a budget?
4.Save or Invest
Q. You have a budget deficit, what do you do first?
Ans: Look at the largest variable expense to cut costs
Q. Your summer job pays a $3000 salary. Is your net pay (higher, lower, or same) as $3,000?
Q. True or False? Preparing a grocery list is a good budgeting strategy.
Q. Having a budget can help you create an emergency fund. True or False?
Q. What is a pre-qualified loan?
Ans: A lender approves you for a loan up to a certain amount based on creditworthiness
Q. You are a new college grad moving to a new city. What are some expense factors you should consider?
Ans: Rent, grocery, travel
Q. What one expense would likely decrease by having roommates?
Q. What is the 50-20-30 rule?
Q. What is a question to determine if something is a need or a want?
Ans: Can I function without it?
Q. Explain how setting financial goals can help create a budget.
Ans: Helps you determine priorities, needs, and wants
Q. Anna’s salary is $50,000, while Emily’s is $30,000. However, Emily is wealthier, explain.
Ans: It depends on debt (Net Worth = Assets – Liabilities)
Q. How can unit price help you save money on groceries? Explain/Give an example
Ans: Cost per unit i.e. Cost per ounce
About Next Gen Personal Finance (NGPF)
Next Gen Personal Finance (NGPF) is a nonprofit organization that provides free, high-quality personal finance education to students and educators. It was founded in 2008 by Debra Schneider and Lowell Steiger. Both Schneider and Steiger have extensive backgrounds in personal finance education. Schneider spent over 20 years teaching high school math and economics, while Steiger has been working in the personal finance industry for over 30 years.
NGPF is a movement to make personal finance more accessible and user-friendly for everyone. It’s aimed at empowering people to make better financial decisions through education, tools, and community support. They also offer paid courses and community support.
Too many people struggle with their finances because they don’t have the right information or resources. NGPF is working to change that by providing easy-to-use tools and resources that anyone can access.
NGPF is a grassroots movement made up of educators, entrepreneurs, and everyday people who want to make a difference in their communities
They believe that everyone has the potential to be financially successful, and we’re working hard to make sure that everyone has access to the information they need and should have the opportunity to learn about personal finance, regardless of age, income, or education level.
There are many ways to get involved with NGPF. You can watch our free videos, read our articles, and use our tools. They also offer paid courses and community support. If you’re interested in getting more involved, please contact them.
How NGPF Shows Answers [Video Tutorial]
Benefits Of NGPF
There are many benefits of NGPF, including:
- Improved financial literacy
- Increased understanding of personal finance concepts
- Better money management skills
- More confidence in making financial decisions
- Reduced stress about money
- Improved overall financial wellbeing
The team at NGPF believes that all young people should have access to quality personal finance education. They offer educator resources, student materials, and teacher training programs to make this a reality.
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