Quiz 3- The First Year

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1. A smart financial strategy is to wait until you have lived in the home for at least ______ before purchasing new furniture and other non-necessities:

a.  3 months
b. 6-12 months
c. 24 months

2. How may the use of revolving credit, such as credit cards, undermine your financial health?

a.  It can be very expensive.
b. It may cause stress in your household.
c. It may have a negative impact on your income.

3. Under which circumstance is it appropriate to put down zero for maintenance in your spending plan?

a.  If your home is brand new
b. If your home is a  condominium
c. It is not a good idea under any circumstance

4. Why is it important to set a budget for home repairs and maintenance?

a.  Unexpected expenses can be a financial burden, making it more difficult to pay the mortgage
b. So you can create your dream home in the first year of homeownership
c. It’s not important at all, you can always use the equity in the home for repairs and remodeling

5. Under what circumstances may it be appropriate to purchase a home warranty?

a.  The home is brand new
b. The furnace, roof and major appliances are over 15 years old and the warranty is reasonably priced.
c. The warranty is more expensive than the average repair

6. You should consider adjusting your exemptions after purchasing a home.

a.  True
b. False

Correct answers: 1.b, 2.a, 3.c, 4.a, 5.b, 6.a