Financial Literacy

Gross pay is...

• The amount of pay you receive before taxes

• The amount of pay you receive after taxes

• The amount of pay you receive if you are a part time employee

• The amount of pay you receive if you are a full time employee

Oh no! You broke your arm. Before you can see a doctor you have to pay your copay. What is a copay?

• It is when you turn your money over to a financial institution for safekeeping.

• It is the amount you have to pay on a loan.

• A percentage charged when you borrow money.

• The amount of money you pay to a healthcare provider before your insurance takes the claim.

True or False: Interest can both cost you money and/or earn you money

• True

• False

A type of auto insurance that protects against damages that aren't caused by a collision or crash is...

• Comprehensive Coverage

• Collision Coverage

• Deductible Coverage

• Liability Coverage

Your credit score is important because...

• It is the number assigned to an individual that calculates your ability to use and pay back credit.

• It is a contract that lets you use someone else's property for a specified rate and length of time.

• It is the amount you own in assets minus the amount you owe in liabilities

• It is a document that details the amount of coverage your insurance offers

Taxes are important because...

• Contributions made to state and federal government pay for things like public services and infrastructure

• It provides Medicare or medical services to Americans after they retire.

• By participating in Social Security, we receive benefits that help support us after we retire.

• All of the above

Personal Injury Protection is a type of add-on insurance that protects you in case...

• You have medical costs or lost wages after an accident because you are hurt

• You get sued if you're at fault for personal or property damage

• You have a collision with an uninsured driver who is at fault

Your minimum payment on a credit card is...

• Typically assessed monthly, the minimum amount you need to pay on a loan to keep it current and avoid negative effects on your credit report.

• The amount that you own in assets minus the amount you owe in liabilities

• An inquiry into your credit history

• A deduction that legally allows you to lower the amount of taxable income you made in a year

A hard inquiry looks at your credit history, typically in advance of applying for a loan. Which of the following is not true of a hard inquiry?

• They can negatively impact your credit for 12 months

• They remain on your credit history for two years

• They can help your credit score

A 401(k) is...

• An employer-sponsored savings and investment plan that allows you to contribute some of your earnings to keep for retirement. Contributions are tax-deferred and your employer might choose to match contributions as a benefit of employment.

• A budgeting method where you record your earnings twice; once in your account and once in your budget.