06. Financial Literacy 23-24 (Civics)

To take care of your finances, what should you track and what should you create?

• Track your income and create a bank account

• Track your spending and create a budget

• Track your W-2 forms and create deductibles

• Track your stocks and create a retirement plan

Which types of receipts should be saved until no longer needed?

• House/Vehicle docs
  Major Purchases
  Insurances docs

  Loan docs

• Grocery/Household item receipts
  Paycheck stubs

  Utility bills

  Credit card statements

Everyone is entitled to one of these once per year, completely free of charge:

• Credit Report

• Tax return

• 401k report

• Domingue's new mixtape

What do lenders use to decide if they trust you to pay back a debt and what your interest rate would be if they do loan money to you?

• Your street cred

• Your credit score

• Your rizz level

• Your annual net pay

What is the range that your credit score can fall between?

• 300-850

• 0-1,000

• 200-800

• 150-950

Which of these factors does NOT affect your credit score?

• Late payments

• Length of credit history

• Total debt used and available

• Length of employment

What is the best thing to do if think you will be late with any credit payments?

• Sell your house and use the money to pay off the loan

• Allow it to go to collections, they will negotiate a lower payment that you can afford.

• Contact the company and be willing to work out a payment plan to catch up.

• Declare bankruptcy so your don't have to pay it back at all

What is the best thing to do if you have not paid on a loan and it has been sent to a collection agency?

• Claim the debt as a loss when filing taxes so that you get a larger refund and can pay off the credit cards

• Declare bankruptcy so the debt is removed from your credit score

• Ignore the debt, and wait 7 years so it will be removed from your credit report

• Negotiate with the collection agency to settle the debt

What is the biggest advantage of having a high credit score when taking out a loan?

• You can receive lower interest rates

• You can take longer to pay back loans

• You receive higher tax returns

• You can take out loans from many different companies

What are the two justifiable reasons credit cards should be used? Choose two correct answers!

• To pay for emergencies that you do not have savings to pay for

• Small daily spending that you can mostly pay off by the end of the month

• To buy expensive things that will take years to pay off