Banking
Credit, Debt, and Consumer Awareness
Investing
Insurance and Taxes
College and Career
100
This type of account does not accrue interest, because it is designed to be drawn from frequently.
Checking Account
100
What does it mean for a debt to be 'secured'?
The person receiving the loan has put up 'collateral' that can be seized if they default.
100
Why is it important to begin investing when you're young?
The power of compound returns!
100
in insurance terms, what is a deductible?
It is the amount you must pay for services before your insurance coverage kicks in.
100
This is the form you must fill out if you want to receive federal student aid for college.
FAFSA
200
This type of fee penalizes an individual for requesting funds beyond those available to them; you receive the funds, but you also have to pay (the CFPB was working on this until recently...)
Overdraft Fee
200
Why is taking out a 7-year auto loan a bad idea?
This creates a situation where your interest will accrue at an alarming rate, potentially putting you 'upside down' in the loan (i.e. paying more in interest than you're paying for the car itself!).
200
Rank the following in terms of risk level, most risky to least risky: bonds, individual stocks, mutual funds
individual stocks, mutual funds, bonds
200
What is an insurance premium?
It is the amount you pay to the insurance company each month, regardless of use of insurance services.
200
What is a key difference between a resume and a cover letter?
It can be less specific than a cover letter.
300
This is the budgeting percentage structure most commonly suggested by financial advisors (you are free to quibble with the categories, but you must name the percentages and what they correspond with!)
50/30/20
50 - Needs
30 - Wants
20 - Savings
300
Give one advantage and one disadvantage of a fixed-rate mortgage.
Advantage - Allows you to lock in an interest rate regardless of future fluctuations
Disadvantage - This can be frustrating if interest rates drop sharply!
300
Why do investing experts often suggest NOT looking at your investments regularly?
Because 'time in' is more important than 'timing.'
300
When you start a new job, you fill out a W-4. What does this form do?
It lets the IRS know how much you plan to withhold in taxes from each paycheck.
300
True or False: Dental insurance is included in most standard 80/20 or 70/30 health insurance plans.
False (unfortunately :( )
400
This is the fundamental difference between a private bank and a credit union.
Credit Unions are not-for-profit, and private banks are some of the most profitable institutions in the world. (The implications of this are manifold!)
400
Name TWO of the factors that comprise your credit score.
400
Name one reason cryptocurrency is a volatile investment, and one that should be approached with caution?
Where do we start?
400
What is 'tax day' in the U.S. ?
April 15th
400
What is the key difference between a traditional IRA and a ROTH IRA?
A traditional IRA is taxed when retirement is drawn upon later in life, while a ROTH is taxed before it enters a retirement account.
500
This type of savings account is most often available online rather than from brick-and-mortar banks. Name the account type AND explain why it's offered online.
High-Yield Savings Account
Online companies can avoid the costs of brick-and-mortar institutions
500
Name TWO ways young people can build credit from scratch (i.e. when they don't yet have a credit score)
- Open a secured credit card
- Become an authorized user on a parent or guardian's card
500
Explain how the interest rates of newly-issued bonds affects the prices of bonds already being traded on the secondary bond marked.
When a new bond is issued, it will be more desirable than existing bonds if the interest rate is higher that existing bonds, and less desirable if the interest rates are lower than existing bonds.
500
Which type of life insurance is often considered to be a scam, and why?
Whole Life Insurance, because it requires huge premiums with the promise of an investment of those funds--but fees eat away at any benefit of this.
500
What is a key difference between a pension and a 401k?
A pension is a 'defined benefit' program, where you receive a set amount after many years of service. 401ks must be contributed to over the course of a career, and are only worth as much as they grow in value over that time.