FR 7th Grade: Personal Finance Review

Front

When you use a debit card you

Back

pull money directly from your bank account

Front

True or False? If you have a $100 balance on your credit card and stop using your credit card for purchases, you won’t ever have to pay interest again.

Back

True

Front

A budget is a.

Back

A plan for managing your money, including income and expenses.

Front

Which response describes responsible use of credit cards? Options: Using a credit card to buy anything you want, even if you can’t afford it right now. Paying only the minimum amount due each month so you can spend more money elsewhere. Using a credit card for purchases you can afford to pay off in full each month. Borrowing as much as possible to take advantage of the credit limit.

Back

Using a credit card for purchases you can afford to pay off in full each month.

Front

What is the main advantage of paying off your credit card balance in full each month?

Back

You avoid paying interest charges.

Front

Which of the following is a consequence of missing a credit card payment?
Options:
Your interest rate will be reduced.
You will receive a reward from the credit card company.
Your credit limit will automatically increase.
Your credit score may decrease.

Back

Your credit score may decrease.

Front

What is a key difference between a credit card and a debit card?

Back

Credit cards offer a line of credit, while debit cards use your own funds.

Front

What happens if you exceed your credit card limit?

Back

You may incur an over-limit fee.

Front

Which of the following is a benefit of having a good credit score? Fewer credit card offers. Higher interest rates on loans. Lower insurance premiums. Increased monthly expenses.

Back

Lower insurance premiums.

Front

What is the purpose of a credit card statement?

Back

To provide a summary of your account activity and balance.