FutureSmart: Ways to Pay

Elijah works at a coffee shop and earns money based on the hours he works. This type of income is called:

• Salary

• Stipend

• Wage

• Benefit

Oliver is reviewing his financial habits to improve his credit score. Which factor has the biggest impact on a credit score?

• Payment History

• Type of credit

• Amount owed

• Length of credit

Ashley wants to buy a new laptop using money from her checking account. Which payment method should she use?

• Credit card

• Debit card

• Direct Deposit

• Prepaid Card

Rohan recently received his first credit card and wants to avoid paying interest. What is the best strategy he should follow?

• Pay the full balance each month

• Skip payments

• Pay the minimum balance

• Make payments online

During payroll processing, Kai noticed that a certain amount is withheld from his paycheck. This amount is used to fund government services such as health care, national defense, and scientific programs. What is this deduction called?

• Federal Income Tax

• Medicare

• Social Security

• State Income Tax

Aria, who works as a software developer, is usually paid on a biweekly or monthly basis. This payment is known as a __________.

Imagine Elijah often uses cash for his daily purchases. Which of the following is the best reason for him to use cash?

• Getting more from the ATM is easy to do

• Keeping track of how much he has spent is simple

• Splitting bills with friends like Jackson and William is easier

• Losing it won’t be a big deal

Arjun is reviewing his credit report and wonders what factor has the biggest impact on his credit score. Can you help him identify it?

• Having a variety of types of credit

• The amount of money he owes on his credit cards

• His history of making payments on time

• The number of years that he has used credit responsibly

Elijah is reviewing his finances and wants to avoid paying interest on his credit cards. What is the best strategy for him?

• Pay the minimum balance each month

• Pay the full balance each month

• Have credit cards from two different banks

• Make payments online

James is reviewing his finances. Which of the following is not a source of income?

• His annual salary for doing his job

• His monthly student loan payment

• The stipend he receives for doing an internship

• The wages he receives after a work shift