Credit Cards: Smart Choices for Kids

What is one benefit of using a credit card?

• It helps you avoid paying taxes.

• It allows you to build a credit score.

• It gives you unlimited spending power.

• It automatically saves money for you.

Which of the following is a risk of using a credit card?

• You can earn rewards points.

• You might spend more than you can afford.

• You can pay for things online.

• You can track your spending easily.

What is a good strategy for budgeting with a credit card?

• Spend as much as you want and pay the minimum balance.

• Only use the card for emergencies.

• Keep track of your spending and pay the full balance each month.

• Use the card to buy things you don't need.

How can you compare different payment methods?

• By looking at the colour of the card.

• By comparing fees, interest rates, and rewards.

• By choosing the one your friends use.

• By picking the one with the coolest design.

What should you consider when picking a good credit card?

• The card's annual fee and rewards program.

• The card's colour and design.

• The card's popularity among your friends.

• The card's ability to make you look rich.

How can you assess if the rewards are worth the annual fee on a credit card?

• By ignoring the annual fee.

• By calculating if the rewards you earn exceed the annual fee.

• By choosing the card with the highest annual fee.

• By asking your friends which card they like.

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What is a credit score?

• A number that shows how much money you have in your bank account.

• A number that represents your creditworthiness.

• A number that shows how many credit cards you own.

• A number that indicates your age.

Which payment method is best for small, everyday purchases?

• Credit card

• Debit card

• Cheque

• Cash

What is one way to improve your credit score?

• Max out your credit card limit.

• Pay your credit card bills on time.

• Apply for multiple credit cards at once.

• Avoid using credit cards altogether.

Which of the following is NOT a benefit of using a credit card?

• Earning rewards points.

• Building a credit history.

• Paying interest on unpaid balances.

• Fraud protection.