Financial Literacy
You want to reduce the amount of loans you'll need to take out for college, so you want to save as much money as you can ahead of time. What's the BEST strategy?
A. Every time you receive a paycheck, spend carefully and then save any money you have left over at the end of the month.
B When you receive any income, either through gifts, allowance, or working, set a goal of saving at least half before you spend the other half.
C. Spend whatever you want during the first 2 years of high school, but then save everything you earn during the last 2 years of high school.
B. When you receive any income, either through gifts, allowance, or working, set a goal of saving at least half before you spend the other half.
Which action would REDUCE the amount of money in Kendra's checking account today?
A Using an ATM to withdraw money using her debit card
B Using a gift card she received for her birthday at her favorite store
C Using her smartphone to deposit a check from her employer
D sing an ATM to deposit a check from her employer
A Using an ATM to withdraw money using her debit card
Which of these is a way to pay for college rather than an expense of attending college?
A Grants
B Tuition
C Room and board
A Grants
What’s the best advice on how much money to borrow in student loans?
A Borrow less than you need, and just hope they don’t kick you out before graduation
B Borrow only what you need for college costs and basic needs
C Borrow the maximum amount so you have a fun, exciting time during college
D Under no circumstance should you ever borrow money for college
B Borrow only what you need for college costs and basic needs
The two main portions of a budget are…
A the money coming in (expenses) and the money you're spending (income)
B the money coming in (income) and the money you're spending (expenses)
D the cash you are spending in stores and the bills you are paying online
C the items you want to buy and the money you need to save for retirement
B the money coming in (income) and the money you're spending (expenses)
Creating a budget can make you feel powerful! Why?
A People who budget earn more money, so they can live a better life
B You can't really budget unless you have an important job, which means that other people look up to you
C People who budget earn more money, so they can live a better life
D A budget puts you in control of your spending and saving, so you make good decisions and feel more confident
D A budget puts you in control of your spending and saving, so you make good decisions and feel more confident
If you have a part-time job as a high school student, what would be the MOST common deduction from your paycheck?
A Retirement savings
B Insurance premiums
C Taxes
D
C Taxes
Which statement best describes NEEDS vs WANTS?
A NEEDS are expenses for your entire family, while WANTS are expenses for you personally.
B NEEDS are required expenses you cannot avoid, while WANTS are optional items you choose to buy.
C NEEDS are monthly bills you must pay, while WANTS are monthly bills you are excited to pay.
D NEEDS are expenses the government pays for you, while WANTS are expenses you must pay for yourself.
B NEEDS are required expenses you cannot avoid, while WANTS are optional items you choose to buy.
Which statement best describes what a budget is?
A A list of all the money you spent during the last month
B A plan for how much income you expect to have and how you want to save and spend it
C A statement from your bank that shows your ATM withdrawals
D A list for which scholarship and grants you will use to pay for college
B A plan for how much income you expect to have and how you want to save and spend it
Why should you use your NET pay when creating a budget?
A Your net pay will always be higher, so you'll have more money to spend
B Your net pay is a more accurate picture of how much money you have available to spend or save
C Your employer knows what your gross pay is, but you only know what your net pay is
D Once you have your net pay, you can figure out how much to deduct in taxes, and then you can do your budget
B Your net pay is a more accurate picture of how much money you have available to spend or save
What are the two main categories of a budget?
A Income and Expenses
B Investments and Insurance
C Taxes and Debt
D Spending and Saving
A Income and Expenses
Who has to pay taxes to the US government?
A Every person or company that earns income in the US
B Every citizen, regardless of their age or working status
C Anyone who owns a home or attends a public school
D No one has to - taxes are a voluntary program
A Every person or company that earns income in the US
What is one DOWNSIDE of using a savings account instead of a checking account?
AFar fewer banks offer savings accounts, while far more banks offer checking accounts
B Your parents need to help you open a savings account, but you can open a checking account without them
C Your savings account has high fees attached to it, while your checking account does not
D Your savings account has a limit of 6 withdrawals per month, while your checking account does not
D Your savings account has a limit of 6 withdrawals per month, while your checking account does not
Tivona is researching careers and trying to decide which one would be the best fit for her. Which is a main question she should ask herself to improve her chances of loving her career?
A Do my friends like this career choice?
B Does anyone else in my family have this career?
C Will this career make me famous?
D Am I passionate about this type of work?
D Am I passionate about this type of work?
Which of these is an example of comparison shopping?
A Buying all your clothes at the same discount outlet
B Researching which online store has the best price on a tent
C Cutting coupons before you go grocery shopping each week
D Paying for items in cash so you don't spend as much money
B Researching which online store has the best price on a tent
Susan's paycheck this month says her gross pay was $400 and net pay was $350. What's the best explanation for why those two numbers are different?
A Susan didn't work as many hours as she promised she would.
B Susan's boss wasn't pleased with her work and reduced her pay.
C Susan spent some of the money before she even got her check.
D Susan's employer deducted taxes from her paycheck.
D Susan's employer deducted taxes from her paycheck.
What is one BENEFIT of using a savings account instead of a checking account?
A Your savings account allows you to use online banking, while checking accounts require you to visit the bank branch
B Your savings account will charge lower ATM fees than your checking account
C Your savings account will earn interest, so the money in your account will grow without you doing anything
D Your savings account lets you write checks or pay bills easily, while it's more difficult to use your checking account
C Your savings account will earn interest, so the money in your account will grow without you doing anything
Scholarships are a great way to minimize the large expense of college. Which statement best describes a scholarship?
A A scholarship is a loan of money that must be paid back before graduating college.
B A scholarship is a loan of money that must be paid back after graduating college.
C A scholarship is free money that you must qualify for but do not need to pay back.
D A scholarship is free money given to every student who decides to attend college.
C A scholarship is free money that you must qualify for but do not need to pay back.
Lamar recently graduated and lives in an apartment he shares with two friends. Each of these expenses is probably a NEED in Lamar's budget EXCEPT...
A Paying his portion of the electric bill
B Going out every Friday to celebrate "Roommate Fun Night" with his friends
C Paying $600 for his monthly rent
B Going out every Friday to celebrate "Roommate Fun Night" with his friends
Ro's school offers an overnight trip to Washington DC for all 9th grade US history students. Even though the trip is 20 months in the future, she knows she wants to attend and that she should start saving now. If the trip costs $500 total, how much does she need to save per month to have enough?
A$20 per month
B $25 per month
C$480 per month
B $25 per month
All of the following are alternatives to attending a 4-year college except...
A Joining the workforce
B Enlisting in the military
C Obtaining a Bachelor's degree
D Attending a trade school
A Joining the workforce
If you have a $1000 balance on your credit card statement, which sentence below is TRUE?
A Your credit card company will take the entire $1000 from your savings account to pay that bill.
B You have already paid that $1000, and you don't owe any additional money.
C You need to make at least the minimum payment each month until the entire debt is paid off.
C You need to make at least the minimum payment each month until the entire debt is paid off.
Celia does not think she wants to attend college after high school. What is one advantage of choosing something OTHER than a 4-year college?
A She may not earn as much money over her lifetime compared to those with a college degree.
B She will likely have a higher amount of debt compared to those with a college degree.
C She will likely spend more time searching for a job and therefore, be able to live with her parents longer.
D She can enter the workforce and start earning money sooner than those obtaining a college degree.
D She can enter the workforce and start earning money sooner than those obtaining a college degree.