Using Credit Cards Wisely

Fill in the Blanks

1. What percent of current college students use their credit cards in emergency situations, only?

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

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

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