Financial Literacy

Tina wants to start saving for college. She heard about CDs and mutual funds, but doesn’t know which is best for her. What should Tina do?

• set aside $100 per month to save

• she should become more knowledgeable by talking to a financial advisor or taking a class

• spend less and put aside what she can

• she should just take out a student loan or multiple student loans if necessary

Drew wants to ask his uncle to help him invest money in the stock market. He scanned the paper and picked a company he had heard about. What should Drew do?

• He should put his money in a checking account.

• He should become more knowledgeable about his options for savings accounts.

• He should avoid buying stocks--too risky!

• He should read a good book about investing in stocks.

Sandy has had a job for a few months now. It will soon be time to complete her first tax return. What should Sandy do? (Choose all that apply)

• Obtain the tax brochure from the IRS and read it.

• Wait until she gets billed from the IRS.

• Ask her parents about how to fill out tax forms.

• Set aside some time to complete the forms well before the deadline.

Choose reasons for becoming financially literate.

• So you can become a good steward of God's resources.

• It reduces your stress.

• So you can choose high risk investments

• It helps you save money and keeps you from losing money.

• It helps you reach your goals and make smart decisions.

Find the 3 misconceptions from the following list:

• Buy stock before you have a steady income.

• After high school, there is no need for further education.

• In high school you are too young to budget.

• Save your money before you have a full time job.

• A bank isn't a safe place to keep your money.

A misconception is a . . .

• notion that is true

• bad habit

• misunderstanding

• lie

Choose an example of financial irresponsibility.

• driving a car without insurance

• clipping coupons to use when shopping

• paying your bills when they are due

• organizing your financial documents

Financial literacy is

• being able to read what is on the dollar bill

• knowledge about money or what you do with money

• a class you can take

A good steward

(Choose all that apply)

• is careful with God's money

• spends money on whatever they want

• is responsible with God's money

• tithes 10% of their earnings