MOS 2277 - MIDTERM (W1- 6) Test
Questions All Answered Correct
Graded A+(2025-2026) Updated.
Money is - Answer 80% behavior
20% knowledge
Important things in life - Answer 1. Health
2. Your relationships/loved ones
3. Money
money provides freedom/choice, security, opportunity, leisure/travel, helping others, a better
world
What does the prof argue as the most rewarding thing - Answer helping people in need
In the personal finance realm a car Is/Not an asset? - Answer a car is NOT an asset in the
personal finance realm
In 2019 the median net worth of Canadian families - Answer $329,900
What was the single vs family median net worth in 2019 in Canada? - Answer single =
$109,400
family = $514,400
Goal setting acronym - Answer SMART
specific
measurable
attainable
relevant (goal should be important to yourself)
time-bound (by when?)
Short-term refers to - Answer 1 yr or less
medium term refers to - Answer 2-3 yrs
,Long-term refers to - Answer 5 years plus
Top 10 causes of relationship strain - Answer 1. Money worries
2. working long hours
3. Extramarital affairs
4. Not understanding one another
5. Family rows
6. Rows about future of relationship
7. Different interests
8. Sex
9. Alcohol
10. Household chores
Building a strong foundation for budgeting - Answer 1. Set goals + budget
2. Start an emergency fund ($1,000)
3. Pay off all debt except mortgage
4. Full funded emergency fund (3-24 months) of spendings worth
5. Invest at least 10% of every paycheck (TFSA/RRSP)
Emergency funds - Answer MUST
it is like having insurance for your life
there is a cost but you will be so happy you have one if you ever need it!
- make sure it is principle-protected
- want to have 3-24 months of spending NOT% of income
- Use a savings account over an investment account
Why do we need an emergency fund - Answer bc people lose their jobs not by the fault of
their own due to economic downturn for example
- health situation arises
How to determine how much of an emergency fund you need - Answer 1. How risky is your
job? (chance of losing it)
2. How quickly can you get a new job if you had to, making about the same or better income?
3. How volatile is your income?
,as you get older it will take you longer to get a job so want to bulk up on the emergency fund as
you get older. Or if working commission based.
What if I cannot wait long enough to build up my emergency fund before investing, paying a
mortgage? - Answer keep adding it to every month
Why is a line of credit bad to use if you don't have enough in an emergency fund? - Answer
1. If the bank finds out you have lost your job (and thus have an "emergency") they may take
your line of credit (money they give you) away and/or demand you pay back any outstanding
balances you have immediately!!!
2. In 2008 after the financial crash many banks just canceled lines of credit without warning!
3. A line of credit is NOT a substitute for an emergency fund!!!!!!
Emergencies consist of - Answer 1.Job loss (most likely use of emergency fund)
2.Major illness
3.Tax problems (you want CRA out of your life as fast as possible) → PAY IMMEDIATELY CRA
should NEVER bother you.
4.Unexpected house/car repairs not covered by insurance
5.And that's about it.... (Divorce)
Emergency funds are NOT for - Answer 1. Buying something that is on a "really good deal".
2. Going to the concert you always wanted to go to because "they may not come around again".
3.Going on vacation.
4. Investing because you are "really sure" you are going to make a bunch of money.
5.Etc....
, Leave money in bank until you need it.
After debt and paying emergency funds can do investments and - Answer 1. Start saving for
retirement - minimum 10% of your income in your 20's (we'll discuss that more later)
2. Save for other large purchases (car, house, wedding)
3. Save for any other "want/need" you have on your "goals".
What if You have money in university - Answer 1.Make sure you have enough for tuition,
books and living expenses.
2.Keep a small emergency fund above #1 just in case.
3.Keep money in savings to pay off any debt you may have when you graduate. (student loan,
car loan, etc.)
4.Think about costs you might incur when you graduate such as:
First and last month's rent
Car
New (to you) furniture
Other household goods (sheets, dishes, etc.)
New clothes for work
How long does it usually take people before their budget is fine tuned - Answer 90 days
How much should you spend on transportation/accomodation/savings etc - Answer other
than:
1. Paying off debt
2. Having an emergency fund
3. Saving enough for retirement
You get to pick how you use your money!
Most people budget in the following order - Answer 1.House/Car
2.Food/Utilities/Clothing
Questions All Answered Correct
Graded A+(2025-2026) Updated.
Money is - Answer 80% behavior
20% knowledge
Important things in life - Answer 1. Health
2. Your relationships/loved ones
3. Money
money provides freedom/choice, security, opportunity, leisure/travel, helping others, a better
world
What does the prof argue as the most rewarding thing - Answer helping people in need
In the personal finance realm a car Is/Not an asset? - Answer a car is NOT an asset in the
personal finance realm
In 2019 the median net worth of Canadian families - Answer $329,900
What was the single vs family median net worth in 2019 in Canada? - Answer single =
$109,400
family = $514,400
Goal setting acronym - Answer SMART
specific
measurable
attainable
relevant (goal should be important to yourself)
time-bound (by when?)
Short-term refers to - Answer 1 yr or less
medium term refers to - Answer 2-3 yrs
,Long-term refers to - Answer 5 years plus
Top 10 causes of relationship strain - Answer 1. Money worries
2. working long hours
3. Extramarital affairs
4. Not understanding one another
5. Family rows
6. Rows about future of relationship
7. Different interests
8. Sex
9. Alcohol
10. Household chores
Building a strong foundation for budgeting - Answer 1. Set goals + budget
2. Start an emergency fund ($1,000)
3. Pay off all debt except mortgage
4. Full funded emergency fund (3-24 months) of spendings worth
5. Invest at least 10% of every paycheck (TFSA/RRSP)
Emergency funds - Answer MUST
it is like having insurance for your life
there is a cost but you will be so happy you have one if you ever need it!
- make sure it is principle-protected
- want to have 3-24 months of spending NOT% of income
- Use a savings account over an investment account
Why do we need an emergency fund - Answer bc people lose their jobs not by the fault of
their own due to economic downturn for example
- health situation arises
How to determine how much of an emergency fund you need - Answer 1. How risky is your
job? (chance of losing it)
2. How quickly can you get a new job if you had to, making about the same or better income?
3. How volatile is your income?
,as you get older it will take you longer to get a job so want to bulk up on the emergency fund as
you get older. Or if working commission based.
What if I cannot wait long enough to build up my emergency fund before investing, paying a
mortgage? - Answer keep adding it to every month
Why is a line of credit bad to use if you don't have enough in an emergency fund? - Answer
1. If the bank finds out you have lost your job (and thus have an "emergency") they may take
your line of credit (money they give you) away and/or demand you pay back any outstanding
balances you have immediately!!!
2. In 2008 after the financial crash many banks just canceled lines of credit without warning!
3. A line of credit is NOT a substitute for an emergency fund!!!!!!
Emergencies consist of - Answer 1.Job loss (most likely use of emergency fund)
2.Major illness
3.Tax problems (you want CRA out of your life as fast as possible) → PAY IMMEDIATELY CRA
should NEVER bother you.
4.Unexpected house/car repairs not covered by insurance
5.And that's about it.... (Divorce)
Emergency funds are NOT for - Answer 1. Buying something that is on a "really good deal".
2. Going to the concert you always wanted to go to because "they may not come around again".
3.Going on vacation.
4. Investing because you are "really sure" you are going to make a bunch of money.
5.Etc....
, Leave money in bank until you need it.
After debt and paying emergency funds can do investments and - Answer 1. Start saving for
retirement - minimum 10% of your income in your 20's (we'll discuss that more later)
2. Save for other large purchases (car, house, wedding)
3. Save for any other "want/need" you have on your "goals".
What if You have money in university - Answer 1.Make sure you have enough for tuition,
books and living expenses.
2.Keep a small emergency fund above #1 just in case.
3.Keep money in savings to pay off any debt you may have when you graduate. (student loan,
car loan, etc.)
4.Think about costs you might incur when you graduate such as:
First and last month's rent
Car
New (to you) furniture
Other household goods (sheets, dishes, etc.)
New clothes for work
How long does it usually take people before their budget is fine tuned - Answer 90 days
How much should you spend on transportation/accomodation/savings etc - Answer other
than:
1. Paying off debt
2. Having an emergency fund
3. Saving enough for retirement
You get to pick how you use your money!
Most people budget in the following order - Answer 1.House/Car
2.Food/Utilities/Clothing
