Virtual SC Personal Finance final exam 2025

Sneak Into Basket

Somewhere in making an online purchase, a site sneaks an additional item into your basket, often through the use of an opt-out radio button or checkbox on a prior webpage.

Hidden Fees

In the last step of the checkout process, you discover some unexpected charges have appeared (e.g., delivery charges, tax).

Roach Motel

You can easily sign up for a subscription or get product emails, but then you find it hard to cancel or get out of it.

Confirmshaming

The option to decline is worded to shame the user into compliance.

Friend Spam

The product asks for your email or social media permissions and then sends messages to all of your contacts pretending to be you.

How many minors (under 18 years of age) have had their identity stolen?

1 in 50

Medical Identity Theft

Your medical bill is stolen from your mailbox, and your information is used to purchase a prescription

Tax Identity Theft

A hacker extracts information from websites and then uses it to file government documents and collect government refunds

Criminal Identity Theft

A person steals a driver's license and uses it to shift the blame for a citation using the stolen license.

Child Identity Theft

Someone uses a child's Social Security number to open a credit card account.

Employment Identity Theft

You find out your Social Security number has been used on a work application that isn't yours.

Which of the following is NOT true about comparison shopping?

It should focus on price

Which of the following is a non-monetary reason to prevent identity theft?

It can take a lot of time for victims to prove their real identity and straighten out fraudulent charges.

When shopping online, how does checking what is in your cart help you to avoid the "sneak into basket" scam?

It can help you catch retailers automatically signing you up for additional items.

Why do companies sometimes add extra fees at the end of the buying process?

People are likely to pay the fees anyway at that point.

Why is it important for people to check their free credit reports at least once each year?

To check for any mistakes, fraudulent accounts, etc. so that they can catch errors early on.

In which of the following scenarios does it make the MOST sense for the person to comparison shop?

Esperanza's old phone broke and she is looking to buy a new one.

Sean wants to buy a bookshelf for his room. Which of the following factors should he be LEAST concerned about when comparison shopping?

When the bookshelf was made.

Three days ago, Niko used his credit card to buy a new jacket he found through a social media ad. He still has not gotten a receipt of payment or confirmation email regarding the purchase and he's starting to suspect he was scammed. What is the next BEST thing Niko should do?

Report the fraudulent charge to his bank and ask them to reverse the transaction.

Bella is comparison-shopping boxes of granola bars. She notices the price per granola bar is cheaper if she buys the box of 48 for $8, instead of the box of 24 for $5. What factor is she comparing?

Quanity

Which of the following is an example of the Roach Motel dark pattern?

A website automatically signs you up for a paid subscription when you create an account but there is no easy way to cancel it.

Which of the following is NOT a likely result of a product going viral on TikTok?

Sellers begin offering huge price discounts.

According to a 2021 Ad Week survey, what percentage of TikTok users said they bought something because of seeing an advertisement on the app?

49%

Which of the following is TRUE about scams?

There are a number of red flags you can be aware of that can help you avoid being scammed.

Which statement is TRUE about child identity theft?

Child identity theft often goes undiscovered for many years

Sofia receives a text message from her bank. All of the following indicate that the text may actually be a scam EXCEPT...

The text message asks her to call the number that is on the back of her debit card.

What is the 50/30/20 rule

50% = essentials 20% = financial goals 30% = flexible spending

Fixed

occur monthly on a specific day for the same amount. Examples: rent payment, car loan payment, subscription services

Recurring

occur repeatedly throughout a month, on different days and for different amounts. Examples: groceries, gas, dining out

Non-recurring

occur repeatedly throughout a month, on different days and for different amounts. Examples: groceries, gas, dining out

Whammy

An unexpected cost. Hospital stay

Gross pay

the amount of money an employee earns before any deductions have been made

Net pay

the amount of money available to you each pay period after deductions

Pay Yourself First

you pay every month is to your savings account. Transfer a pre-determined amount into savings at the beginning of the month. After you pay yourself, you should pay your bills, then use the rest however you please.

Which of these boxes of cereal has the LOWEST unit price?

$5.00 for a 32 oz. box.

Direct costs

are those paid directly to the college and include tuition and fees, housing, and meal plan.

Indirect costs

are educational costs not paid directly to the college. They can include textbooks, transportation, dorm furnishings, and other personal expenses.

Institutional health insurance

may be required depending on the college. If it's required, it will be automatically billed to you and can cost several thousand dollars. If you have a comparable health insurance plan, you can submit proof of your plan to waive this charge from your bill.

529 Plan

It is an investment vehicle designed to help families pay for future expenses associated with college or other qualified post-secondary training.

Coverdell ESA

A Coverdell Education Savings Account (ESA) is a tax-advantaged savings plan designed to help families save for future education expenses. It allows you to invest money that can be used for qualified education expenses, such as tuition, books, and other related costs.

Difference between Coverdell ESA and 529

Unlike ESAs, 529 plans don't have age restrictions. The beneficiary of a 529 plan can be any age when the account is established, and there is no limit on when the funds can be used.

529 pre-paid plan

Using a 529 prepaid plan means the adult will agree to pay over time for tuition at the cost of x amount a year, and the school will honor that rate when the child enrolls.

FAFSA

stands for Free Application for Student Aid; it is the only way to apply for federal aid on your college applications.

EFC

It is a calculation based on the financial information provided in the FAFSA, including income, assets, and household size.

Work Study

A job gives you the opportunity to earn money to help pay for your eductional expenses.

Subsidized Loan

You pay back the loan but the government pays interest

Unsubsidized loan

You pay both the loan and interest.

Promissory notes

A written promise to repay what you borrowed

estate tax

A tax on the value of property you own at your death. It considers everything you own or have certain interests in at the date of death. There is a federal estate tax, and some states have their own estate taxes.

income tax

Federal, state, and local taxes on income, both earned (salaries, wages, tips, commissions) and unearned (interest, dividends). Includes both personal and business or corporate income taxes. Not all states and localities have income taxes.

property tax

Taxes on property, especially real estate, but also can be on boats, automobiles (often paid along with license fees), recreational vehicles, and business inventories.

sales tax

A tax on retail products based on a set percentage of the retail price.

tariff

A tax on products imported from foreign countries. This tax can increase the costs of those products, which ultimately can be passed on to consumers as higher prices

Tax Credit

A dollar-for-dollar reduction in a tax. It can be deducted directly from taxes owed. Tax credits can reduce the amount of tax you owe or increase your tax refund, and some credits may result in a refund even if you don't owe any tax.

Tax reduction

An amount (often a personal or business expense) that reduces income subject to tax.

Taxes

Required payments of money to governments, which use the funds to provide public goods and services for the benefit of the community as a whole.

trust fund

legal arrangements that allow individuals to place assets in a special account to benefit another person

discretionary spending

government spending that is subject to the annual appropriations process, meaning it's determined by Congress each year through the budget process.

mandatory spending

government spending that is required by existing law, rather than being subject to annual appropriations bills

FICA

Taken out of your paycheck, which pays for Social Security and Medicare for older people

I-9

Proves that you can legally work in the U.S

W-2

A form given to you during tax season details what has already happened (how much was and earnt and withheld.

W-4

A form for you to complete when you start. You usually receive this from your employer. It controls how much tax is withheld from your income.

1040

What's used to file your federal income tax return

1099

Income that is not earned from a regular job where tax is withheld. like construction jobs or babysitting

Credit Union

A non-profit financial institution with less locations, but may be part of a broader network

certificate of deposit

a type of savings account that holds a fixed amount of money for a fixed period, typically ranging from a few months to several years. In exchange for committing to not withdrawing the money during that period

passbook savings

a passport-sized booklet that contains all the information related to your savings account. It records your savings activity, such as deposits, withdrawals, the interest you've earned and your account balance.

money market account

a type of savings account that typically offers higher interest rates than traditional savings accounts and may also provide limited check-writing or debit card access. It combines features of both savings and checking accounts, allowing for easy access to funds while also earning interest.

unsecured loan

secured loan