Financial Literacy

What happens when you use your debit card?

• It is the same as a credit card

• Money is directly pulled out of your checking account.

• You use your checkbook.

True or False - Debit and Credit Cards work exactly the same way?

If you want a credit card before you are 21 what is a reason you may need support from your parents?

• You need a deposit for a secured credit card which would help you build credit

• parental support with a credit card could help with future planning

• You may need a cosigner

• A credit card can be useful in an emergency

• All of the above

What aspects of a credit card would not rely on the support of a parent?

• Credit card benefits and convenience of a credit card

• you may need a cosigner

• You may need a deposit

What are the benefits of early loan payments on student loans?

• Less debt

• Increase your credit score

• All of the above

How do secured credit cards work?

• You can spend unlimited money

• You put down a deposit in case you default on a payment

• You sign up online

How do payments work on a secured credit card?

• You spend whatever you want

• You pay once a year

• You are allowed to spend the amount of the deposit but must pay your monthly payment

Why are secured credit cards less risky for lenders?

• They can take from your deposit if you default on a payment.

• They just take your credit card

Why would someone want a secured credit card?

• They don't want to go through a bank

• They have bad crdit and get otherwise get a credit card

• all of the above

Why should you read through your credit card statement?

• Keep track of your balance

• keep track of monthly payments

• keep track of interest rates and make sure you aren't charged incorrectly

• All of the above