Financial Literacy Final Assessment Review

What is the purpose of setting up and putting money into an emergency fund?

• You use that money in case an unexpected expense comes up that you must pay for.

• You invest the fund into the stock market and make a huge profit to use for emergencies.

• You use it to pay for college tuition or a major expense like a house.

• You save that money to use for common monthly expenses like your rent, insurance, and bills.

Marbella just got her first job working part-time at a department store on weekends. Before receiving her first check, her aunt says, "Be sure to pay yourself first!" What does that mean?

• Marbella should pick up her check first thing in the morning, right when banks open.

• Marbella should make sure she buys everything she needs, personally, before shopping for others.

• Marbella should save part of her paycheck first, before she buys anything with the money.

• Marbella should ask her boss for a raise, so that her paycheck is higher.

Kellen is saving for a new video game system, which costs $300. He receives an allowance of $30 per month, and he usually spends $15 and saves $15 each time. How many months will it be until Kellen has saved enough to buy the game system?

• 10 months

• 12 months

• 20 months

• 30 months

Which of these is a key benefit of having a high credit score?

• You will have an easier time getting into a good college.

• You will have more money in your checking and savings accounts.

• You will qualify for better rates on loans or credit cards.

• You will earn more money from your employer.

Ronny uses his debit card to buy new Bluetooth headphones at Audio Stop in a shopping plaza near his house. Where will the money come from for this purchase?

• The money will come straight from Ronny's checking account and go to Audio Stop's account.

• The money will come out of Ronny's savings account at the end of the month and be sent to Audio Stop.

• Ronny will take the money out of an ATM and repay Audio Stop before they close for the day.

• Ronny's credit card company will pay Audio Stop, and then Ronny will repay the credit card company later.

If you are trying to get a loan to pay for a used car, what type of interest rate should you be looking for?

• You want a low interest rate so the total you pay is less.

• You want a high interest rate so the total you pay is less.

• You want compound interest, so that the value of the car grows quickly.

• You want a high interest rate so you can afford a fancier car.

1. Which of the following will REDUCE the amount of money in your checking account?

• Deposit a check that someone gives you for your birthday

• Use your debit card to get money from an ATM (Automated teller machine)

• Buy an expensive new watch using cash

• Transfer funds from your savings account to your checking account

Complete the sentence:

A checking account statement...

• is the receipt you get from a store when purchasing something from your checking account

• tells you the bank policies on fees

• lists all the purchases and deposits you've made in the previous months

• allows you to take out a student loan for college

Which statement best describes NEEDS vs WANTS?

• NEEDS are monthly bills you must pay, while WANTS are monthly bills you are excited to pay.

• NEEDS are required expenses you cannot avoid, while WANTS are optional items you choose to buy.

• NEEDS are expenses for your entire family, while WANTS are expenses for you personally.

• NEEDS are expenses the government pays for you, while WANTS are expenses you must pay for yourself.

If John deposits this entire paycheck into his checking account, how much money will go into his account?

• $1,524.74

• $2,000.00

• $30,494.81

• $40,000.00