Financial Literacy Quiz

Sylvester just got approved for a loan but isn’t sure about some of the terms. Which explanation best helps him understand?

• The length of the loan is called the TERM, and INTEREST RATE determines how much extra he’ll pay back in total.

• PRINCIPAL refers to monthly payments, and TERM is the total loan amount.

• INTEREST RATE tells him what percentage the lender charges annually, and PRINCIPAL is the original amount borrowed.

• MONTHLY PAYMENT is the cost of interest alone, and TERM refers to the lender’s name.

Erin, along with her friends Kai, Zoe, and Ava, is on a quest to find the most budget-friendly college. What should be her main focus to uncover the best deal?

• The listed cost on the college’s website

• The amount she’ll pay after financial aid is applied

• Completing the FAFSA application

• The cost of housing and meals at the college

Elijah wants to become a credit score superstar! Which action should he take to boost his score?

• Consistently pay his bills by their due date

• Spend more money each month using credit cards

• Close all his credit accounts once they’re paid off

• Always select 'credit' instead of 'debit' when using his card

Casey is on a fun grocery shopping adventure and needs to access her checking account funds. What exciting way can she do this?

• Buy a prepaid card with cash and feel like a secret agent

• Deposit a paycheck into her account and wait for the magic to happen

• Swipe her debit card at the register and watch the transaction dance

• Withdraw money from an ATM using her credit card and play the waiting game

Imagine Aiden, Benjamin, and William are planning their college journey. What crucial form must they fill out to unlock the treasure chest of financial aid?

• Financial aid application letter

• FAFSA application

• SAT or ACT scores submission

• A parent’s credit score report

Your friends, Hannah, Ethan, and Nora, are having a lively debate about how credit works. Which statement is hilariously inaccurate?

• A closed credit card will still appear on your credit report for years.

• Building a credit history early can help with major purchases later.

• Turning 18 guarantees you’ll qualify for a high-limit credit card.

• Using credit cards monthly and paying them off in full is good for your credit score.

Imagine you're in a game show with Aria and David, and you have to pick the best financial product like a loan or credit card. What's the least helpful advice you could follow?

• Choose products based on what matters most to you.

• Research all your options thoroughly.

• Review the details of terms, fees, and disclosures.

• Go with whatever your parents use.

Imagine Aria is on a shopping spree! How can she end up paying the most interest on her credit card over time?

• By paying 20% of her balance each month

• By making only the minimum required payment

• By paying off her balance every month

• By choosing 'credit' over 'debit' when asked by a cashier

Imagine you're helping Sophia, Isla, and Abigail plan their college journey. What type of financial aid would be the most magical choice to cover their college expenses?

• Grants or scholarships that don’t need repayment

• Federal student loans with low, fixed rates

• Private loans tailored to your needs

• Work-study programs with low interest

In the bustling world of cyber adventures, who among the following is most likely to fall into the trap of identity theft?

• Scarlett, who uses unique, strong passwords for each account

• Sophia, who checks her bank account using public WiFi at a café

• Maya, who shreds personal documents before discarding them

• Abby, who avoids posting personal details online