Money Basics
What is the difference between a debit card and a credit card?
A debit card uses money from your bank account; a credit card borrows money you repay.
What is phishing?
A scam that tricks people into giving away personal or financial information.
What does BOGO stand for?
Buy one, Get one.
What is a credit score used to help determine?
How likely someone is to repay borrowed money.
You get paid $300, but your paycheck is smaller than you expected because of taxes and other deductions. What is the amount you actually receive called?
Net Pay
What is the name for money you receive from your employer for working?
A paycheck (or wages).
You receive a text saying you won a free iPhone but must click a link to claim it. What should you suspect?
A scam or phishing attempt.
A pair of shoes costs $150 and is 50% off. What is the sale price?
$75 dollars
Does constantly checking your own credit score lower it?
Noooooo
You get paid $250. You want to buy a $180 pair of shoes, but you also need to pay your $60 phone bill. Can you afford both? How much would you have left?
Yes, you would have $10 left.
What does it mean to overdraft your bank account?
Spending more money than you have available in your account.
What does BOGO stand for?
Buy One, Get One.
What is it called when a company makes you feel like you need to buy something before it sells out?
FOMO Marketing,
(Scarcity marketing), as the formal definition
You use your credit card to buy something for $200. You pay back $50 before your payment deadline. What happens to the remaining $150 if you don't pay it off?
You may be charged interest on the remaining balance.
$150 -->$153, the payment will continue to increase and you will end up paying more than the original price of the item due to compounding interest.
You work part-time and your manager offers you an extra shift. You already have plans with friends, but you're saving for something expensive. What financial trade-off are you making?
A faster path to your savings goal, or the experience with your friends.
In economics this is called -Opportunity cost-
What is direct deposit?
When your paycheck is electronically deposited into your bank account.
A scholarship website guarantees you'll win $10,000 if you sign up. What's a red flag?
No legitimate scholarship can guarantee you'll win.
A store offers flat 20% off a $100 purchase. How much do you save?
$20 Dollars Duh
You have a credit card with a $1,000 limit and already used $850. How much available credit do you have left?
You buy a $100 Jacket using a Buy Now, Pay Later service like klarna or after pay. What could happen if you miss one of your scheduled payments?
You could be charged late fees, have trouble with future payments, or potentially damage your credit depending on the service.
If your a repeat offender they will ban your account or suspend you.
What is the difference between gross pay and net pay?
Gross pay is earnings before deductions (for example taxes), while net pay is what you take home.
A scholarship application asks you to pay an application fee before you can apply. Should you trust it?
No. Legitimate scholarship applications generally don't require application fees.
A product costs $80, but the store raises its price to $100 before advertising a 20% discount. How much are you actually saving compared to the original price?
Nothing! They got your ahh
What is the difference between a credit card's limit and its available credit?
The limit is the maximum amount you can borrow; Available credit is how much of that limit remains unused.
You get paid $300, but your paycheck is smaller than you expected because of taxes and other deductions. What is the amount you actually receive called?
Net pay