Financial Literacy

Which situation describes a reasonable decision about donating money to a charity?

• Mr. Stephens received $4,000 on his monthly paycheck. He donated $2,000 to a local charity before he realized he would not have enough money left to pay his monthly bills.

• Natalie had $50 left after she spent her monthly earnings to pay her bills. She needed to spend the $50 to buy groceries for her family but she donated $25 to charity.

• Mildred was asked for a charitable donation of $200. Mildred made the contribution before determining if she had enough money to pay her expenses for the month.

• Mrs. Majors had $500 left over from her paycheck after paying all of her monthly bills. She put $400 of the extra money into her savings account and donated $100 to her favorite charity.

Collette researched the hourly wage for different jobs. She made a table to show the hourly wage and years of experience needed for certain jobs.

Based only on the information in the table, which of these is most likely the hourly wage of a software developer?

• $7.85, because that wage is listed below the housekeeper/cleaner’s wage in the table.

• $33.00, because being an elementary teacher requires 5 years of experience, and the experience required for a software developer is also close to 5 years.

• $45.00, because a software developer’s job is a little less important than the financial manager’s job.

• $60.00, because being a software developer requires the most years of experience.

A company needs to hire a new manager. The table shows the years of training/education and the years of experience for 5 people who applied for the manager job.

Based on the information in the table, which person is most likely to get the manager job?

• Rita, because she has the most years of experience and training/education compared to the rest of applicants.

• Daniel, because he is listed first in the table.

• Greg, because he has the fewest years of experience and training/education compared to the rest of applicants.

• Elisa, because the company might prefer to hire a woman instead of a man.

Acme Auto Sales has car sales lots in Burnet, TX and Hutto, TX. The manager compared the total sales for each of the two locations.

The manager noticed that the Burnet sales lot had greater annual sales than the Hutto sales location.

Which statement explaining why the Burnet sales lot had greater sales than the Hutto sales lot is most likely NOT true?

• The Burnet sales lot had greater annual sales because its staff had a greater average years of experience then the staff in Hutto.

• The Burnet sales lot had greater annual sales because its staff had received more customer complaints than the staff in Hutto.

• The Burnet sales lot had greater annual sales because its staff had received more training about the cars they sell than the staff in Hutto.

• The Burnet sales lot had greater annual sales because its staff had received more training about good sales techniques than the staff in Hutto.

Most of the limes that people in Texas eat come from Mexico. Last summer, a disease destroyed most of the lime crops in Mexico.

Which statement best describes the effect the destroyed lime crops will have in Texas?

• The price of limes will decrease because limes will be scarce.

• The price of limes will increase because limes will be scarce.

• The price of limes will stay the same because there will be more limes available.

• The price of limes will decrease because they will not taste the same.

Mrs. Fritz told her class that one way to save money is to buy fruit that is in season. Fruits in season are fruits that are in their natural growing season and are ready to be picked.

Which statement supports what Mrs. Fritz told her class?

• The price of fruit that is not in season is usually less because people don’t want it.

• The price of fruit that is in season is low because the fruit spoils quickly.

• The price of fruit that is in season is low because more fruit is available to buyers.

• Not here

The Franco family is planning an out-of-state trip to visit relatives. They have decided to begin looking at airfares and hotels 6 months before the trip.

Which statement does NOT describe a benefit for the Franco family by planning 6 months early?

• They will know how much money to save over the next 6 months to cover the costs of the airfare and hotel.

• They will have to make a reservation with the first airline and hotel they call.

• They will have time to comparison shop for the best prices on both hotels and airlines.

• Not here

Celia’s current headphones work well, but she really likes the headphones that are on sale at a local electronics store. Even though the headphones are expensive, Celia decides to purchase the headphones today.

Based on the information, which statement describes a cost Celia must consider before buying the headphones?

• The price of the headphones is reduced for the sale and will never be available at that price again.

• If she buys the headphones on sale today, she will be able to save enough money to take care of all future spending needs.

• If she buys the headphones today, she may not have enough money left for other necessary spending.

• The price of the headphones will go up each week.

Andy is starting a new job tomorrow that requires him to wear a white shirt. He found a white shirt at the store. He does not have enough cash to pay for the shirt and is not sure how much money is in his checking account.

Which statement describes the most reasonable choice Andy could make in order to buy the shirt today?

• He could use his credit card since he does not have the money needed with him at the time of purchase.

• He could write a check for the shirt and hope that he has enough money in his checking account.

• He could phone a friend and ask to borrow the money needed to buy the shirt.

• He could tell the sales person that he doesn’t have the cash to pay for the shirt and ask if he can take the shirt home today if he promises to come back next week with the cash.

It is winter and the heater in Joseph’s house is not working. The cost to repair the heater is more than Joseph has in his bank account.

Which statement does NOT describe why Joseph may decide to use his credit card to pay for his heater repair?

• Joseph did not plan to spend money repairing his heater.

• Joseph is not responsible for any charges he makes on his credit card.

• The temperature in the house will be too cold without a working heater.

• Joseph knows he will be able to pay the credit card balance quickly with little or no interest.