Understanding Payment Methods and Savings

Which of the following is an example of a cash payment method?

• Credit card

• Debit card

• Physical currency

• Personal check

Tags

TEKS.8.12.E

What does the term "compound interest" mean?

• Interest earned only on the original principal

• Interest earned on both the principal and previously earned interest

• A fixed fee charged by a bank each month

• Interest paid only at the end of a loan term

Tags

TEKS.8.12.C

Which of the following best describes a financially responsible decision?

• Spending more money than you earn each month

• Saving a portion of your income regularly

• Using credit cards to pay for all daily expenses without a repayment plan

• Ignoring monthly bills until they are overdue

Tags

TEKS.8.12.F

What is one advantage of using a debit card over a credit card?

• You can spend money you do not currently have

• It builds your credit score faster

• You spend only the money available in your bank account

• It offers more fraud protection than a credit card

Tags

TEKS.8.12.E

If you invest $100 every month starting at age 13, which statement best describes what happens to that money over time due to compound interest?

• The money stays the same because you are only saving small amounts

• The money decreases because of bank fees

• The money grows faster over time as interest is earned on interest

• The money grows only if you invest large amounts at once

Tags

TEKS.8.12.C

Which of the following is a cost associated with financial irresponsibility?

• Higher credit score

• Accumulation of debt and interest payments

• Increased savings over time

• Better loan terms from banks

Tags

TEKS.8.12.F

What is tuition?

• The cost of textbooks and school supplies

• The fee charged by a college or university for instruction

• The money a student earns from a part-time job

• The cost of transportation to and from college

Tags

TEKS.8.12.G

Which of the following payment method requires you to write the amount and payee on a paper document drawn from your bank account?

• Credit card

• Mobile payment

• Personal check

• Prepaid card

Tags

TEKS.8.12.E

What is a "savings plan" in the context of college funding?

• A plan to borrow money from a bank for college

• A strategy to regularly set aside money over time to pay for college costs

• A government program that pays for all college expenses

• A plan to reduce the number of classes taken each semester

Tags

TEKS.8.12.G

Which of the following is a benefit of financial responsibility?

• Increased debt over time

• Lower credit score

• Greater financial security and reduced stress

• Higher interest rates on loans

Tags

TEKS.8.12.F