Next Gen Personal Finance Pre-Test

Which of the following best describes the amount of money you’ll have if you put $1000 into a savings account earning 2% annual compound interest for 10 years? You can ignore the impact of inflation in this question.

• The same $1000 you started with

• Exactly $1200

• Slightly more than $1200

• $2000

• Exactly $20,000

You have a credit card that charges a 20% APR, has a monthly minimum payment of approximately 3%, and has a credit limit of $5000. Choose all true answers. (You may pick more than one)

• Your bill will increase by 20% every month if you do not pay your balance in full

• If you have a $3000 balance and pay the monthly minimum each month, you’ll have the debt paid off in less than 2 years

• If you pay the entire bill in full, every month, you will not pay any interest

• Your APR will remain 20% as long as you have the card ope

• If you make the minimum monthly payment, on-time every month, your credit report will be positively impacted

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CCSS.HSF.BF.A.2

In order to qualify for financial aid, prospective college students must file their _____________.

• Financial aid letter

• FAFSA

• PSAT, SAT, or ACT scores

• Parent’s credit score

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CCSS.RI.7.5

CCSS.RI.8.3

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5

How can you improve your credit score?

• Pay all of your bills on time

• Spend more money on each of your credit cards

• Pay off and then close all of your credit cards

• When merchants ask, “Credit or debit?” always choose credit

One of the benefits of buying car insurance is…

• If you have insurance and are pulled over for speeding, you won’t get “points” on your license

• If you pay your premium on-time every month, you won’t have to pay anything extra if you are in an accident

• If you are in an accident, the other driver cannot sue you if you have car insurance

• If you are in an accident and another driver is injured, your insurance will cover portions of his/her medical bills

Which of the following is the most valid argument a teen could make to his/her parents to convince them to cosign a credit card application?

• Getting a credit card will allow me to begin establishing a credit history of on-time payments that will improve my credit score

• Getting a credit card will make me spend less, because research shows people spend less with credit cards than they do with cash

• Even if I miss a payment or am late occasionally, don’t worry -- it will only affect my credit score, not yours

• Paying my tuition on a credit card will be cheaper for me, in the long run, than taking out student loans

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CCSS.RI.7.8

CCSS.RI.8.1

CCSS.RI.8.8

CCSS.RL.7.1

CCSS.RL.8.1

TRUE OR FALSE: Lots of people make financial mistakes in their early 20s. Declaring bankruptcy, offloading all of your debt, and then starting over will reset your credit score so you can start with a clean slate.

• True

• False

• I'm not trying

Which one of these statements about overdraft protection is TRUE?

• The average overdraft fee is over $25

• If you have overdraft protection, you don't ever have to worry about whether you're spending more money than you have

• All checking accounts must have overdraft protection in order to be insured by the FDIC

• You only get charged an overdraft fee once per month, so it doesn’t matter how much you go over your account or how many times you overdraw

When you move into an apartment, if you buy renter’s insurance, you will

• Pay roughly $150 per month

• Be able to hire a cleaning service if you throw monthly parties and need help cleaning up

• Reduce your rent by the cost of the insurance payments

• Be able to file a claim if your laptop and stereo are stolen during a break-in

Which of the following options at the grocery store has the lowest unit price? a

• 1 box of cereal for $3.25

• 3 boxes of cereal for $9.99

• 5 boxes of cereal for $15

• You can’t tell without knowing the tax rate at that grocery store

• It depends how many boxes of cereal you need at the time

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CCSS.6.RP.A.3B