Using Credit Cards Wisely

Fill in the Blanks

Multiple Choice

2. What is the number one category of spending across all three populations?

• Online purchases

• Everyday purchases

• Big-Ticket Items

• Recurring Purchases

• Stores with store credit cards

Multiple Choice

2. What category of credit card spending has the greatest difference between Completers and Non-completers?

• Online purchases

• Everyday purchases

• Big-Ticket Items

• Recurring Purchases

• Stores with store credit cards

Fill in the Blanks

Open Ended

4. Compare and categorize the types of spending Completers do more on credit versus the types of spending Non-completers do more using credit.

Open Ended

Hypothesize why the category for big-ticket items is substantially smaller for the Students than for the other two groups

Multiple Choice

1. Which best describes how a credit card works?

• 1. The credit card company extends you a line of credit. You then pay a small percentage of the cost of those purchases in one annual payment.

• 1. The credit card company extends you a line of credit. You purchase "stuff"  and the purchase gets directly paid with funds in your checking account.

• 1. The credit card company extends you a line of credit. This is free money that you can use to purchase the "stuff" that you need.

• 1. The credit card company extends you a line of credit. You purchase "stuff" and then have the choice to pay the balance in full or a minimum payment each month.

Multiple Choice

2. What is the advantage of paying your credit card balance in full each month?

• 1. You will incur only a small "paid in full" fee on your next credit card statement

• 1. You pay only a small amount of interest

• 2. You have less of your credit limit available, therefore, less temptation to spend

• 3. You avoid paying any interest and fees

Multiple Choice

3. What is an outstanding balance?

• 1. The amount you paid in your minimum payment

• 1. The amount you spent in total

• 1. The amount you still owe after you have made your most recent payment

• 1. The amount you still have available in your line of credit

Multiple Choice

4. Why is it more difficult to get out of debt when only paying the minimum payment?

• 1. Your entire minimum payment goes toward principal and the interest continues to compound

• 1. The majority of your minimum payment is going toward interest and finance charges and only a small amount toward the principal

• 1. Your credit limit always resets, so you have a lot of spending power each month

Multiple Choice

5. The video advises you to "be a deadbeat.” What does that mean?

• 1. Pay your credit card bill in full and on time every single month, thus paying no interest or fees

• 1. Make the minimum payment on your credit card on time each month

• 1. Never open a line of credit so the credit card companies do not make any money