Financial Literacy SSPFL5

Not taxed until the money is withdrawn (In other words, you pay taxes on the money when it comes OUT of your account).

• Traditional IRA

• Roth IRA

A government program designed to help people who may not have access to things like a 401k at their job.

• Social Security

• Medicare

Which of these is LEAST LIKELY to determine credit worthiness?

• Age

• Income

What is an example of credit?

• Credit card

• Debit card

Creditworthiness is the ability to?

• Repay a loan

• Earn a high income

While credit is all or part of an amount a borrower may use, debt is

• The amount owed

• The amount available

A person’s reputation for paying debts based on past behavior. The best indicator of character is credit score.

• True

• False

Any time that a person defers payment, they are using

• credit

• cash

• debit

• check

Annual Income, Number of years working for same employer, Education, Debt-to-Income Ratio: Are all factors of

• Credit Score

• Loan Approval

• Job Satisfaction

• Health Insurance Premium

_______ is the ability to repay a loan.

• Capacity

• Interest

• Collateral

• Term