CONSUMER EDUCATION PRE-QUIZ

A SPENDING PLAN FOR MANAGING MONEY DURING A GIVEN PERIOD OF TIME IS CALLED ______________.

• INTEREST

• A BUDGET

• FIXED EXPENSES

• CREDIT

A DISADVANTAGE OF CREDIT IS _____________

• IT ALLOWS YOU A WAY TO PAY EMERGENCY EXPENSES

• IT ENCOURAGES IMPULSE SPENDING

• IT ALLOWS YOU TO ESTABLISH CREDIT

• IT ALLOWS YOU TO BUY NOW AND PAY LATER

AN EXAMPLE OF A VARIABLE EXPENSE WOULD BE

• RENT

• CAR INSURANCE

• ELECTRICITY BILLS

• SCHOOL LOAN

AN EXAMPLE OF A FIXED EXPENSE IS

• ELECTRIC BILL

• RENT

• NATURAL GAS BILL

• ALL OF THE ABOVE

WHICH OF THE FOLLOWING ACTIONS COULD PUT YOUR PERSONAL INFORMATION AT RISK?

• SHREDDING CREDIT CARD INFORMATION

• DOWNLOADING FREE SOFTWARE/APPS TO YOUR PERSONAL COMPUTER/PHONE FROM UNKNOWN STORES

• ORDERING A COPY OF YOUR CREDIT REPORT

• REGULARLY REVIEWING FINANCIAL SATEMENTS

THIS PROTECTS PERSONAL POSSESSIONS IN THE EVENT OF FIRE, FLOOD, THEFT, ETC.

• AUTOMOBILE INSURANCE

• PROPERTY/RENTERS INSURANCE

• LIFE INSURANCE

• LIABILITY INSURANCE

IF YOU DECIDE TO BUY A HOUSE, HOW MUCH OF THE TOTAL PRICE IS USUALLY RECOMMENDED YOU PUT AS A DOWN PAYMENT?

• 5%

• 10%

• 15%

• 20% OR MORE

Which is NOT a typical goal for a savings account?

• To create an emergency fund
• To pay for higher education
• To save for a new car
• To buy groceries for this week

About how much should you save in an emergency fund?

• 1-3 months of living expenses
• 3-6 months of living expenses
• 6-9 months of living expenses
• 9-12 months of living expenses

Overdraft protection...

• is a service offered only for premium checking accounts.

• brings in a few hundred dollars each year to banks.

• is a fee-free service that prevents you from overdrawing.

• can keep you from overdrawing but charges a fee.