Introduction to Financial Literacy

Interest is...

• the amount earned or owed on principal amount

• late fees

• the orginal amount borrowed

A budget is...

• a plan for how you will spend your money

• a type of savings account

• the amount of money the government taxes you on

When it comes to savings, always..

• keep most of your cash hidden at home

• choose savings account with lowest interest rate

• pay yourself first

What type of bank account offers the most flexible access to your money?

• Certificate of Deposits (CDs)

• checking

• savings

Debit cards are connected to funds in your bank account.

• True

• False

Which one of these is a charge you would NOT see on a credit card.

• cash advance fee

• money order fee

• late payment fee

Best way to avoid credit card debt.

• paying in full and on time

• paying the minimum every month

• only using credit cards for things you can't afford

Making small purchases on your credit card is __________.

• good, because you don't have to pay for them

• bad, because they can pile up and end up costing you more

• bad, because they look bad on your credit report

A credit score is ___________.

• a number that represents how likely you are to pay debts

• amount of credit you get for scoring well on tests

• money you're allowed to charge to credit card

One late payment does not lower your credit score.

• True

• False