Financial Literacy Unit Test

Front

What is the benefit of a savings account?

Back

A savings account earns interest.

Front

What is one potential disadvantage of a payday loan?

Back

They are often considered the worst due to high interest rates

Front

Why do financial institutions offer higher interest rates for Certificates of Deposit (CDs)?

Back

You must keep your money in the account for a set amount of time.

Front

Keira is new to earning money and saving. She doesn't have a lot of money to open an account. Which savings option would be best for her?

Back

Savings Account

Front

What kind of account did Sawyer open that requires a large initial deposit, pays a high interest rate, and allows easy access to his money?

Back

Money Market Account (MMA)

Front

How can a budget help you reach your financial goals?

Back

Budgeting helps track spending and increases savings.

Front

What does "pay yourself first" mean?

Back

Put money in your savings account before you pay other expenses.

Front

How should Carlos categorize paying his insurance using the 50/30/20 method?

Back

Needs

Front

What is the benefit of a checking account?

Back

It helps you spend money without carrying cash.

Front

What is the benefit of gifting money via check?

Back

It is safer because you can trace the transaction.