Credit
Wendy is going to finance her car purchase using an auto loan.
True or False:
Her principal is the cost of the car, plus any down payment she makes
False
Her principal is the cost of the car, MINUS any down payment she makes
True or False:
When you have liability coverage with your auto insurance policy your medical bills will be covered if you're in an accident, even if you are at fault.
False
What do you need to subtract from a college’s cost of attendance in order to find the net price?
Grants and Scholarships
Alex is creating a budget for the first time and doesn’t know which to use - NET PAY or GROSS PAY. Which do you suggest and why?
“Use net pay, because it’s the total amount you’ve earned minus taxes and other deductions.”
Rinaldy buys three new hats from a store at the mall. He uses his debit card and says, "Credit" when the cashier asks, "Credit or debit?"
True or False:
This payment method would immediately reduce the amount of money in his checking account?.
TRUE
All of the following can be found in your credit report EXCEPT…
a. Your credit payment history
b. Your checking account balance history
c. The average age of your credit accounts
d. Your total number of active credit accounts
b. Your checking account balance history
The monthly premium for Javier's renters insurance is $10, and his deductible is $750. During the month of May, someone breaks into his apartment and steals or destroys $1800 worth of his possessions. How much will Javier pay and how much will the insurance pay to replace his items?
Javier pays $750 // insurance company pays $1050
The application you submit in order to determine eligibility for federal student aid is called the ...
FAFSA
Christina is a high school student who has a part-time job at a grocery store.
True or False:
Medicare, federal taxes, social security, and overdraft fees will all be deducted from her paycheck.
False (overdraft fees)
How much money would you have if you put $2000 into a savings account earning 2% annual compound interest for 5 years?
$2,208.20
What is one step you can take to protect yourself from identity theft?
a. Check your bank statements each month to verify that all transactions are accurate
b. Log into your bank's mobile app using a public WiFi network
c. Throw away expired bank account cards and documents without shredding them
d. Use websites that start with "http" instead of "https"
a. Check your bank statements each month to verify that all transactions are accurate
Using Target Date Funds can be beneficial for beginner investors, because...
It will automatically adjust your assets for you over time
True or False:
Suppose you are trying to switch banks or open a brand new credit card. Focusing on sign-up bonuses or introductory offers is generally considered good advice when comparing options.
FALSE
Amelia has started a full-time job as an analyst at a broadcasting company. Which tax paperwork is she likely to receive during her first week on the job?
A W-4 Form
What is the best method for paying 0 interest on your credit card purchases?
Paying off your balance in full and on-time each month.
Carmine always makes the minimum monthly payments on all of his debts, on time. He receives a raise at work which gives him an extra $250 per month in take-home pay. If his primary goal is to minimize the amount of interest he'll pay over the lifetime of his debts, which debt should he pay down most quickly using his increased pay?
a. His car loan with a 6.9% interest rate
b. His credit card with a 19.7% interest rate
c. His private student loans with an 11.8% interest rate
d. His Federal student loans with a 3.76% interest rate
b. His credit card with a 19.7% interest rate
Ulises puts $750 per month into his bank account earning 1% interest and tells Brandon his money is invested. Is Ulises correct?
Incorrect. A savings account is not investing!
What is the difference between a student loan and a scholarship or grant?
Student loans need to be repaid, while scholarships and grants are both "gift aid" that don't need to be repaid
Gwenyth earns $3,300 per month. She estimates her monthly costs to be: apartment rent of $1,000, car loan and insurance of $750, groceries of $300, utilities of $250, phone/internet of $150, and other expenses of $400.
True or False
Gwenyth is spending exactly what she earns, leaving no money for savings
False:
Gwenyth has $450 left over each month that could be used to build savings or pay off debt
True or False:
One major pro of mobile banking is that they typically waive all of the normal fees like overdraft fees, ATM fees, and insufficient funds fees
False
It's convenient because you can deposit your check using your phone's camera and the bank's app.
Pretend you make $1000 worth of purchases on your credit card, your bill arrives saying your minimum payment due is $75 and you pay $200 before the due date. Describe how credit card interest works and what you can expect to happen next.
You will be in good standing with the credit card company. You will be charged interest on the balance ($800) because you did not pay it off entirely before the due date. Credit card interest is then charged on any new purchases and any balance carried unpaid from the previous month. The total amount of interest charged is based on your balance + new purchases at your credit card’s Annual Percentage Rate.
Explain the concept of “risk pooling” and how it relates to car insurance.
Insurance premiums are set based on risk factors, with riskier individuals paying more than “safer” individuals. Each person in the “pool” pays their monthly premiums, regardless of whether they file any claims that month. Those who DO have auto insurance claims that month receive payments from the insurance company toward their claims; those who don’t have any claims receive nothing. But, the concept works because EVENTUALLY you may need to draw on the benefits, and insurance should cover you according to the policy agreement.
You’ve picked out a new phone and are finally ready to get your own cell phone plan! But first, the salesperson says they need to check your credit report. Explain why a cell phone service provider would want to see your credit report.
A credit report shows your credit history, including any late or missed payments. Since getting your own cell phone plan means you’re entering into an agreement where you’ll be expected to make timely monthly payments, they’ll want to make sure you’re not at risk of failing to pay your bill.
Thomas worked a part-time job last year. It’s now January and he’s preparing to file his taxes. Briefly explain what he needs to do -- and when -- in order to file his taxes.
Being unbanked means that you lack access to (or choose not to access) the traditional banking system. What are two drawbacks to using alternative banking products instead of a traditional bank?
How many degrees does a full circle contain?
360 degrees
What is pencil lead actually made of?
Graphite
Cerulean is a shade of what color?
Blue
What were the first 2 Pokemon games released in America?
Red and Blue
Who is the mayor of Yonkers?
Mike Spano