WISE Financial Literacy
Certification Test 2026 Expert
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Earned Income - 🧠ANSWER ✔✔Income derived from active participation
in a trade or business, including wages, salary, tips,
commissions and bonuses.
Unearned Income - 🧠ANSWER ✔✔Any income that comes from
investments and other sources unrelated to employment services.
,Examples: interest from a savings account, bond interest, alimony, and
dividends from stock
Exemptions (aka allowance) and how they work - 🧠ANSWER ✔✔If you are
not claimed as a dependent on another
taxpayer's return, then you can claim one personal tax
exemption. The exemption reduces your taxable income just like a
deduction does, but has fewer restrictions to claiming it. If you are married
and file a joint tax return, both you and your spouse each get an exemption.
Exemptions (aka allowance) and how they work PART 2 - 🧠ANSWER
✔✔The IRS allows you to take additional exemptions for each dependent
you claim. Frequently, the source of these exemptions are the children who
live with you for more than half the year, are under 19 years old (or under
24 if a full-time student) and who don't provide more than half of their own
financial support during the tax year.
Liquidity - what does it mean? - 🧠ANSWER ✔✔The ability to convert an
asset to cash quickly and with
minimal impact to the price.
, Liquidity - what financial products are liquid? - 🧠ANSWER ✔✔Examples:
Cash, Most stocks, money market instruments and government bonds.
Gift cards - how do they work? - 🧠ANSWER ✔✔A gift card is a restricted
monetary equivalent is issued by retailers or banks to be used as an
alternative to a non-monetary gift.
Gift cards - how do they work - fees? - 🧠ANSWER ✔✔Prepaid cards, gift
cards, and gift certificates cannot expire within five years of activation or
unless the terms of the expiration are clearly disclosed. The law bans
dormancy fees, inactivity fees or service fees on gift cards unless there has
been no activity in a 12-month period and the issuer clearly discloses all
fees before the gift card is purchased.
Gift cards - how do they work - fees? (Exclusions) - 🧠ANSWER ✔✔Prepaid
phone cards , re-loadable cards, loyalty
or rewards cards, cards issued for admission to special
events or venues and certificates issued in paper form only are exempt.
Discretionary income and budget surplus - 🧠ANSWER ✔✔The amount of
an individual's income that is left for
spending, investing or saving after taxes and personal
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Certification Test 2026 Expert
Verified | Ace the Test
Earned Income - 🧠ANSWER ✔✔Income derived from active participation
in a trade or business, including wages, salary, tips,
commissions and bonuses.
Unearned Income - 🧠ANSWER ✔✔Any income that comes from
investments and other sources unrelated to employment services.
,Examples: interest from a savings account, bond interest, alimony, and
dividends from stock
Exemptions (aka allowance) and how they work - 🧠ANSWER ✔✔If you are
not claimed as a dependent on another
taxpayer's return, then you can claim one personal tax
exemption. The exemption reduces your taxable income just like a
deduction does, but has fewer restrictions to claiming it. If you are married
and file a joint tax return, both you and your spouse each get an exemption.
Exemptions (aka allowance) and how they work PART 2 - 🧠ANSWER
✔✔The IRS allows you to take additional exemptions for each dependent
you claim. Frequently, the source of these exemptions are the children who
live with you for more than half the year, are under 19 years old (or under
24 if a full-time student) and who don't provide more than half of their own
financial support during the tax year.
Liquidity - what does it mean? - 🧠ANSWER ✔✔The ability to convert an
asset to cash quickly and with
minimal impact to the price.
, Liquidity - what financial products are liquid? - 🧠ANSWER ✔✔Examples:
Cash, Most stocks, money market instruments and government bonds.
Gift cards - how do they work? - 🧠ANSWER ✔✔A gift card is a restricted
monetary equivalent is issued by retailers or banks to be used as an
alternative to a non-monetary gift.
Gift cards - how do they work - fees? - 🧠ANSWER ✔✔Prepaid cards, gift
cards, and gift certificates cannot expire within five years of activation or
unless the terms of the expiration are clearly disclosed. The law bans
dormancy fees, inactivity fees or service fees on gift cards unless there has
been no activity in a 12-month period and the issuer clearly discloses all
fees before the gift card is purchased.
Gift cards - how do they work - fees? (Exclusions) - 🧠ANSWER ✔✔Prepaid
phone cards , re-loadable cards, loyalty
or rewards cards, cards issued for admission to special
events or venues and certificates issued in paper form only are exempt.
Discretionary income and budget surplus - 🧠ANSWER ✔✔The amount of
an individual's income that is left for
spending, investing or saving after taxes and personal
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
