Financial Literacy Test

Front

What is the best way to create a budget?

Back

Divide your income into categories and plan how much you'll spend on each.

Front

How does a debit card work?

Back

It lets you pay with the money in your checking account.

Front

Which of the following is true about credit cards?
Options:
You can't use a credit card at most stores.
If you don't pay your balance off in full each month, you will accrue interest.
Credit cards allow you to access money in your checking account.
Charging your credit card is the best way to pay for an unexpected expense.

Back

If you don't pay your balance off in full each month, you will accrue interest.

Front

How do you request that your insurance pay for the lost items after a break-in?

Back

You file a claim.

Front

What is the name of the document that comes with your paycheck and shows you what you were paid and how much was taken for taxes?

Back

Paystub

Front

When moving to a new rental, you will likely need to pay a security deposit. How much is this often? Options: $500, 75% of one month's rent., First and last month's rent., Four months of rent.

Back

First and last month's rent.

Front

You got $200 from your grandma for your birthday. What should you do first?

Back

Record it as income in your budget.

Front

What is the name of the document that tells you what you need to pay on your credit card?

Back

Statement

Front

What happens if you go into debt?

Back

You will need to pay back a minimum amount every month, you will likely pay more than you borrowed due to interest, and your credit score can be negatively affected.

Front

You charged $500 to your credit card to buy a new TV and paid it off after 6 months. With interest, you paid back a total of $600. What is the principal in this situation?

Back

$500