Money
You must be 21 to open your own checking account.
False. At 18 you can open one alone, and most banks offer teen accounts earlier with parents.
Renter’s insurance usually costs less than $20 a month.
True. It costs roughly $10-$20 a month for a young renter.
The IRS will never demand payment in gift cards.
True. Gift cards, wire transfers, and crypto are scam demands. The IRS will send letters first and does not threaten an arrest.
If you lease a car, you own it at the end of the lease.
False. A lease is long-term renting. You hand it back or pay a set buyout price if you want to keep it.
The FAFSA is free to file.
The first F is for Free. Any site charging a fee is not the official one.
Checking your own credit score does not lower it.
True. Only a lender’s inquiry moves your score, and only slightly.
A landlord can keep your whole security deposit for normal wear and tear.
False. Security deposits cover damage beyond normal wear.
If the caller ID shows your bank’s name, the call really is from your bank.
Caller ID is easily spoofed. Hang up and call the number on the back of your own card.
A brand new car loses thousands of dollars of its value in the first few years.
True. Depreciation is a new cars biggest cost. Buying used lets someone else absorb it.
You have to be a straight A student or an athlete to get financial aid.
False. Pell Grants go by financial need and direct loans are not grade-based.
If your bank fails, the money in your account is gone.
False. The bank’s insurance covers up to $250,000 per depositor.
Landlords commonly require your income to be about three times the monthly rent.
True. The 3-times rule is standard screening. Some may need a co-signer.
Once a deposited check shows as available, the money is definitely yours.
False. Funds automatically go into your account but a fake check can “bounce” weeks later and the money is taken back.
The loan with the lowest monthly payment is always the cheapest loan.
False. A longer term lowers the payment but adds interest. Compare the total of all payments to get the actual cost.
Moving into a higher tax bracket can mean you take home less money.
False. Only the dollars above the “line” are taxed higher, so a raise always adds
If you earned too little to owe income tax, there is no point in filing a return.
False. Filing is how withheld tax comes back, and some credits are refundable.
Your first month living on your own usually costs more than a normal month.
True. Security deposit, first month’s rent, utility setup and buying furniture make the first month the most expensive.
Your landlord’s insurance pays to replace your things if the building burns.
False. The policy covers the building, not your personal items - furniture, laptop, gaming system, etc. That’s why you need renter’s insurance.
A deductible is the amount you pay before your insurance starts paying.
True. You pay your deductible first, then your insurance starts helping.
Your take home pay is just your yearly salary divided by 12.
False. That is your Gross Pay. Income tax, social security, etc come out first and what is left is your take-home pay or Net Pay.
Social Security and Medicare take 7.65% out of your wages before you ever see them.
True. 6.2% + 1.45% are withheld from every paycheck. Your employer pays a matching 7.65%.
A common guideline is to keep an emergency fund of about three months of expenses.
True. Three months of expenses is the usual target. But any savings helps!
You still have to repay a federal student loan even if you never finish your degree.
True. You borrowed the money, you have to pay it back. Even when things don’t go to plan.
A lower monthly premium usually comes with a higher deductible.
True. Pay less monthly, pay more when you file a claim.
SURPRISE…
Free points!