Identity and Consumer Protection
Someone steals your personal information and opens accounts in your name. What type of crime is this?
Identity theft
Which financial institution is owned by members rather than shareholders?
Credit union
What do we call the amount of money earned before taxes and deductions
Gross pay
Money awarded to students that usually does not need repayment is called what?
Scholarship
Which financial tool helps people organize income and spending?
Budget
A person notices suspicious activity on a credit report and wants to prevent new accounts from being opened. What action should they take
Place a security freeze/fraud alert on their credit report
Jordan has enough money in his checking account and wants to avoid paying interest on a purchase. What payment choice makes the most sense?
Debit card or credit card paid in full immediately
A computer costs $500 and sales tax is 8%. What is the total purchase price?
$540
Which college payment option requires repayment with interest later?
Student loan
Why does compound interest help savers build wealth faster than simple interest?
Interest earns interest over time)
A landlord checks an applicant's credit history before renting an apartment. Why would they do this?
To predict whether the applicant is financially responsible
Someone pays only the minimum amount due on a credit card every month. What long-term effect could occur?
Lower credit score and difficulty getting favorable loan rates
Emma earned $800 this week but only takes home $620 after deductions. What is the $620 called?
Net pay
A student enjoys working with tools, repairing equipment, and hands-on projects. Which pathway would likely fit best?
Technical/trade career path
Insurance primarily protects consumers from what?
Unexpected financial losses
A person creates a password using letters, numbers, and symbols instead of a birthday. Why is this a stronger choice?
It makes the password harder to predict and reduces risk of identity theft
Why might an adjustable-rate mortgage become risky over time?
Interest rates could rise and increase monthly payments
Why does increasing the number of withholding allowances often increase take-home pay?
Less money is withheld from each paycheck
Why might a worker choose a job with a lower salary but strong retirement benefits?
Long-term financial value may outweigh short-term income
An investor buys stock after prices fall sharply. What strategy are they likely using?
Buy low, sell high
Compare these choices: using the same password everywhere vs. creating unique passwords for each account. Which strategy better protects financial information and why?
Unique passwords because one stolen password will not expose every account
A person needs emergency car repairs but uses a payday loan with large fees. Explain why this could create long-term financial problems.
High fees and APR can trap borrowers in debt cycles
Explain how taxes, Social Security, and Medicare affect the difference between gross pay and net pay.
These deductions reduce take-home income
Compare grants and student loans. Why might one option be financially better in the long run?
Grants do not require repayment while loans create future debt
A student starts saving at age 18 instead of waiting until age 30. Explain why starting earlier often creates larger retirement savings.
More time for compound interest growth