Personal Financial Literacy

Attending a state university will cost $17,300 for the first year. A student’s parents will pay half of the cost. The student received a $1,500 scholarship from a local charity and a grant for $3,000 from the university. What is the minimum amount that the student will need to save each month for the next 12 months to pay off the remaining cost of attending the university for one year?

• A. $4,150

• B. $345.83

• C. $290.75

• D. $510.49

Which situation best represents a financially responsible decision?

• Getting a loan to purchase a new 65-inch television and video game console

• Using a credit card to pay utility bills

• Borrowing money from your parents to purchase the newly released smartphone

• Saving $50 from each paycheck until enough money has been saved to purchase a new laptop computer

Gerald is buying a new pair of shoes. He uses a form of payment to pay for the shoes. Gerald will make small monthly payments to the financial institution that provided him with the form of payment until he has fully repaid the amount of the purchase. The longer it takes for him to pay it off, the more interest he will pay. What method of payment did Gerald use to buy the shoes?

• Cash

• Gift card

• Debit card

• Credit card

The cost of attending a community college is $5,600 per year. Simone is a student entering the 9th grade who plans to attend the community college for 2 years after she graduates from high school. Her parents have agreed to pay $1,500 each year that she attends. Which plan shows the minimum amount that Simone needs to save each month while in high school to have enough money to pay for the remaining cost of attending community college?

• $170.83 per month for the next 4 years

• $202.03 per month for the next 4 years

• $85.42 per month for the next 4 years

• $54.17 per month for the next 4 years

What is an advantage of making online payments?

• Identity theft can occur.

• Service or processing fees may be added to the payment.

• Payments can be made from a smartphone, tablet, or computer as long as internet service is available.

• Personal information must be entered into a website to complete payment.

Calvin wants to buy a new home entertainment system for his living room. He has enough money in his checking account to pay all of his monthly bills. He has just enough money in his savings account to buy it without affecting his monthly budget. Which decision should Calvin make to be financially responsible?

• Calvin should use the money in his savings account to buy the home entertainment system.

• Calvin should wait until he has saved more money before buying the home entertainment system.

• Calvin should get a credit card and use it to buy the home entertainment system.

• Calvin should get a loan so he can buy the home entertainment center without using the money he already has.

The cost of attending a private university is $15,000 per year. Teresa and her parents are discussing how they will pay for her first year of college. What is the minimum amount they must save each month?

• $933

• $813

• $500

• $125

What is a disadvantage of using a credit card to make payments?

• There does not need to be enough money in your bank account to make the payment.

• You may have to pay interest on the balance if it is not paid off in full.

It is the beginning of the month, and Daniel’s rent is due. He also needs to make his car payment and buy groceries. Daniel was invited to go to dinner and a movie with his friends. He does not have enough money in his budget to pay his bills and go out with his friends. What decision should Daniel make to show that he is financially responsible?

•  Daniel should pay his bills and buy groceries, and then he should invite his friends over to his house to enjoy an evening with friends. 

• Daniel should pay his rent now and wait to make his car payment and buy groceries so he can go out with his friends.

• Daniel should pay his bills and get an easy-access loan so he can have money to go out with his friends. 

• Daniel should pay his rent and make his car payment, and then he should use the remaining money to enjoy a night out with his friends. He can borrow money from his parents for groceries.   

Dayanara plans to attend a state university after she graduates from high school and will stay on campus. The table shows the costs of attending the university for one year. Tuition is $6,800, Room and Board is $9,200, and Books and Supplies are $1,120. Dayanara has received a scholarship of $7,500 for each year she attends school. Her grandparents will contribute $2,000 toward her first year. Which savings plan shows the minimum amount that Dayanara and her family must save each month in order to have enough money for the first year at the university?

• $400.83 per month for 2 years

• $317.50 per month for 2 years

• $330.00 per month for 2 years

• $635.75 per month for 2 years