Financial Literacy Flashcard

Front

Magda is going to finance her car purchase using an auto loan. Which statement below is accurate? Her principal is the cost of the car, minus any down payment she makes, Her interest rate is the total cost she'll pay after making all of her principal and interest payments, Choosing a shorter term means it will take her longer to repay the loan, It’s likely that her monthly payment will be between 4-5% of the cost of the car

Back

Her principal is the cost of the car, minus any down payment she makes

Front

Jaime is creating a budget for the first time and doesn’t know which to use - NET PAY or GROSS PAY. What do you tell him?

Back

Use net pay, because it’s the total amount you’ve earned minus taxes and other deductions.

Front

Jennifer is trying to save up for an emergency fund of $3000. Which saving strategy would likely be most effective in helping her meet her goal? Options: At the end of the month put any leftover money from her checking account into her savings instead, Set up a direct deposit of $75 from each paycheck to automatically get put into her savings account instead of her checking account, Wait until she's paid off all of her credit card and student loan debt, and then start saving for an emergency fund, Every month, after she's paid for rent, student loan and credit card debt, utilities, and groceries, put $50 or $100 into savings.

Back

Set up a direct deposit of $75 from each paycheck to automatically get put into her savings account instead of her checking account.

Front

How much will Kyle pay to attend Super Smarts University, which has a sticker price of $45,000 per year and a net price of $38,000 calculated by the online net price calculator?

Back

The exact net price

Front

Look at this image: Diagram showing the relationship between insurance premiums and deductibles. Which of these statements is TRUE regarding the relationship between insurance premiums and deductibles? The higher the premium the higher the deductible, The lower the premium the lower the deductible, The higher the premium the lower the deductible, The price of premiums has no relationship to the price of deductibles

Back

The higher the premium the lower the deductible

Front

Which of the following would have the most positive impact on your credit score?
Options:
Close any credit cards you're no longer using
Spend more money on each of your credit cards
Take out a car loan for $18,000 or more
Make all payments on time, and focus on paying down any credit cards that are close to their credit limits

Back

Make all payments on time, and focus on paying down any credit cards that are close to their credit limits

Front

Zoe buys three new lipsticks from a store at the mall. Which payment method would reduce the amount of money in her checking account? Options: Pays with a prepaid card she loaded earlier in the month, Uses her credit card and says, "Credit" when the cashier asks, "Credit or debit?", Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?", Pays with cash she had in her purse

Back

Uses her debit card and says, "Credit" when the cashier asks, "Credit or debit?"

Front

StayWell Health Insurance is offering a plan with a monthly premium of $250, a deductible of $3500, and maximum out-of-pocket expenses of $6000. If Sheldon chooses this insurance, what is the MOST he should pay in one calendar year?

Back

$6,000

Front

Which statement BEST describes how wants and needs vary from each other? Options: Your wants may be someone else's needs and the other way around. Wants are things you can live without whereas needs are things you must have.

Back

Both A and C

Front

Which definition best describes the FAFSA?

Back

The application you complete in order to determine eligibility for federal student aid.