Financial Literacy Review

Financial Literacy and STAAR Review

By Julianna Messineo

Open Ended

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

Multiple Choice

Mr. Lloyd wants to buy a new TV but he does not have enough money in his bank account to pay for one. Which of these is NOT an option for Mr. Lloyd?

• He can use his credit card to buy the TV now.

• He can save money and use cash to pay for the TV at a later date.

• He can use his debit card to buy the TV now.

• He can save money and use his debit card to pay for the TV at a later date.

Multiple Choice

Which statement best describes purchases made with a debit card?

• Purchases made with this card are subject to interest.

• Purchases made with this card can be paid over time.

• Purchases made with this card are drawn directly from the bank account.

• Purchases made with the card are subject to a credit limit.

​Credit Reports

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A credit report measures the amount of consumer debt and the repayment of the debt.

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​The higher the score, the more likely the lender is to lend money to the consumer.

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Information stays on your credit report for approximately 7 years. ​

Example of a credit report​

Multiple Choice

Which of these describes information that can appear in a consumer's credit report?

• The name of a store where the customer pays cash for all purchases.

• The name of a company that gave the consumer a car loan 2 years ago.

• The amount of money the consumer will need to borrow in the next 4 years.

• The amount of money that the consumer loaned to a family member.

Multiple Choice

Ms. Versini applied for a car loan from a bank. Which statement best describes the importance of Ms. Versini's credit report to the bank?

• The report that shows the likelihood that Ms. Versini will pay back the entire loan on time.

• The report shows the highest level of education Ms. Versini has reached.

• The bank gives higher interest rates to people with higher credit scores.

• The bank gives partial loans to people with strong credit.

Multiple Choice

Consumers sometimes make choices that cause negative information to be put on their credit reports. Which of the following is the most likely number of years that this information will remain on their credit reports?

• 3-6 years

• 7-10 years

• 11-14 years

• 15-18 years

Multiple Choice

• $6,916

• $74,724

• $747,240

• $69,160

Multiple Choice

• $402,500

• $126,770

• $11,500

• $4,434,500

​Balancing a check register

A withdrawal is when you take money OUT OF your bank account. (subtracting money)

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A deposit is when you (or someone else) ​deposits money INTO your bank account. (adding money)

Draw

Fill in the bubbles with your answer using the correct place value.

Multiple Choice

Riley received financial assistance to pay for his college education. After he graduates, he will have to pay back the amount of money he received plus any interest that accrues after graduation.

Which kind of financial assistance did Riley receive?

• Student Loan

• Scholarship

• Work Study

• Savings Plan