Future Smart: Ways to Pay (Module 3)

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

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

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

• salary

• stipend

• wage

• benefit

Which of the following is the best reason to use cash for purchases?

• Getting more from the ATM is easy to do

• Keeping track of how much you have spent is simple

• Splitting bills with friends is easier

• Losing it won’t be a big deal

Which of the following is not a source of income?

• Your annual salary for doing your job

• Your monthly student loan payment

• The stipend you receive for doing an internship

• The wages you receive after a work shift

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.

• Paying off a credit card balance in full can have a negative impact on someone’s credit score.

• The longer you use credit responsibly, the higher your credit score.

• Low-risk borrowers tend to have low credit scores.

Which of the following statements is TRUE about payday loans?

• They are harder to pay back because of low fees and high-interest rates

• They are harder to pay back because of high fees and high-interest rates

• They are easier to pay back because of lower fees and higher interest rates

• They are easier to pay back because of lower fees and lower interest rates