Future Smart 3: Ways to Pay

Income earned on an hourly basis is called a 

• salary
• stipend
• wage
• benefit

Which factor has the biggest impact on a credit score?

• payment history
• type of credit
• amount owed
• length of credit

Ashley wants to use money from her checking account to make a purchase.  Which payment method should she use?

• credit card
• debit card
• direct deposit
• prepaid card

What is the best strategy for avoiding credit card interest?

• pay the full balance each month
• skip payments
• pay the minimum balance
• make payments online

______ is withheld from a paycheck and is used to fund government services such as health care, national defense, and scientific programs.

• Federal income tax
• Medicare
• Social Security
• State income tax

Which of the following is not an income?

• your annual salary
• your monthly student loan payment
• your stipend received as part of an internship
• your wages earned during a work shift

Amy's new summer job at the pool will pay her $9 per hour.  Which term describes this type of hourly income?

• salary
• stipend
• wage
• benefit

A _____ is usually paid on a biweekly or monthly basis for professional employment.

• salary
• stipend
• wage
• benefit

What is state income tax?

• the tax you pay to state or local government when purchasing an item
• the tax paid to the state government where you live or work based on your income
• the tax that pays for healthcare for people ages 65 and older
• the tax paid to the federal government based on your income

Which of the following statements is true?

• applying for several lines of credit in a short period of time can help boost a person's credit score
• none of these statements are true
• the longer you use credit responsibly, the higher your credit score
• low risk borrowers tend to have low credit scores