Financial Literacy Quiz

Being on a budget means...

• You pay bills every month on the due date.

• You made a plan of your expenses to be less than or equal to your income.

• You are earning enough money to be able to live well.

• Your bills are generally paid by every due date.

How often can you get a free credit report?

• once every 2 years

• once every 6 months

• once a year

• You can get a free credit report.

Where could you get a free credit report with no annual fees?

• www.annualcreditreport.com

• www.freecreditreport.com

• from the US Department of Finance

• You can't get a free credit report.

What is considered an EXCELLENT credit score?

• 700 to 850

• 500 to 560

• 561 to 600

• 1000 to 1500

What is NOT a method to improve your credit score?

• Pay all your bills on time.

• Maintain your older credit cards.

• Keep your credit card balances under 30% of your credit limit.

• Always pay in cash and do not get any credit cards.

Your credit score is important because...

• It can affect your interest rate if you finance a car or home.

• It can have an impact on whether you can finance major purchases.

• It can determine whether you can get credit cards.

• All of the above.

Which of the following is a method to fund your college education?

• Apply for financial aid using the FAFSA application.

• Seek out less expensive college alternatives.

• Seek out college scholarships.

• All of the above.

An example of a need is...

• a Florida vacation

• a car

• room and board

• a laptop

Scenario: I bought my first car and got a loan to pay for it. If I default on my loan, only this lender will know about it, and if I need another loan, I'll be able to get one from another lender.

• True

• False

It is OK to skip payments on your bills some months, as long as you pay the next month.

• True

• False