8th Grade Financial Literacy Quiz

You earn $500/month. Your rent is $300, groceries are $100, and your phone bill is $75. What’s your leftover money called?

• Net income

• Disposable income

• Gross income

• Taxes

You buy a $1,200 phone using a credit card with 20% interest and don’t pay it off for 6 months. What happens?

• The phone becomes free

• You owe less over time

• You end up paying more

• Nothing

Which investment type is typically considered the least risky?

• Stocks

• Index funds

• Lottery tickets

• Savings accounts

You’re offered a job that pays $10/hour for 10 hours or $90 flat. Which pays more and by how much?

• Hourly by $10

• Flat rate by $10

• Same

• Depends on overtime

What is the best reason to build good credit?

• So you can buy things you can’t afford

• To get lower interest rates on loans

• To show off your credit score

• To get credit card rewards

What’s one thing you’ve bought recently that you regret? Why?

Explain the difference between a debit card and a credit card.

Describe a time you made a choice and had to give up something else. What was the opportunity cost?

You earn $2,000/month and want to save 25%. How much is that?

(a)  

List 2 long-term financial goals you have and how you might reach them.