Financial Literacy Test

What is the best way to create a budget?

• Spolit your income in half: save 50% and spend 50%

• Create minimum savings goals that you must reach before you can buy any "wants".

• Decide a maximum amount that you can spend each week. Spend that amount however you want as long as you don't go over it.

• Divide your income into categories and plan how much you'll spend on each.

How does a debit card work?

• It lets you pay with the money in your checking account.

• Your bank or credit union lets you borrow money that you have to pay back later.

• It automatically deducts money from your savings account.

• It gives you the option to choose what account you want to pay with.

Which of the following is true about credit cards?

• You can't use a credit card at most stores.

• If you don't pay your balance off in full each month, you will accrue interest.

• Credit cards allow you to access money in your checking account.

• Charging your credit card is the best way to pay for an unexpected expense.

Someone broke into your apartment and stole all of your stuff. Luckily, you have renter's insurance. How do you request that your insurance pay for the lost items?

• You file a claim.

• You submit a powerpoint presentation.

• You prepare a lease.

• You write a essay explaining why you shouldn't have to pay.

What is the name of the document that comes with your paycheck and shows you what you were paid and how much was taken for taxes?

• Paystub

• Payline

• Pay Report

• Pay Sheet

When moving to a new rental, you will likely need to pay a security deposit. How much is this often?

• $500

• 75% of one month's rent.

• First and last month's rent.

• Four months of rent.

You got $200 from your grandma for your brithday. What should you do first?

• Record it as income in your budget.

• Stick it under your bed for safekeeping.

• Deposit it all straight into your savings account.

• Spend it.

What is the name of the document that tells you what you need to pay on your credit card?

• Overdraft

• Lease

• Deposit

• Statement

What happens if you go into debt?

• You will need to pay back a minimum amount ever month.

• You will likely pay more than you borrowed due to interest.

• Your credit score can be negatively affected.

• All of the answer choices you see will happen.

You charged $500 to your credit card to buy a new TV and paid it off after 6 months. With interest, you paid back a total of $600. Which of the following is the principal in this situation?

• $500

• 6 months

• $100

• $600