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WorksheetsFinancial Literacy Test
Total questions: 30
Worksheet time: 8hrs 30mins
What is the best way to create a budget?
Spolit your income in half: save 50% and spend 50%
Create minimum savings goals that you must reach before you can buy any "wants".
Decide a maximum amount that you can spend each week. Spend that amount however you want as long as you don't go over it.
Divide your income into categories and plan how much you'll spend on each.
How does a debit card work?
It lets you pay with the money in your checking account.
Your bank or credit union lets you borrow money that you have to pay back later.
It automatically deducts money from your savings account.
It gives you the option to choose what account you want to pay with.
Which of the following is true about credit cards?
You can't use a credit card at most stores.
If you don't pay your balance off in full each month, you will accrue interest.
Credit cards allow you to access money in your checking account.
Charging your credit card is the best way to pay for an unexpected expense.
Someone broke into your apartment and stole all of your stuff. Luckily, you have renter's insurance. How do you request that your insurance pay for the lost items?
You file a claim.
You submit a powerpoint presentation.
You prepare a lease.
You write a essay explaining why you shouldn't have to pay.
What is the name of the document that comes with your paycheck and shows you what you were paid and how much was taken for taxes?
Paystub
Payline
Pay Report
Pay Sheet
When moving to a new rental, you will likely need to pay a security deposit. How much is this often?
$500
75% of one month's rent.
First and last month's rent.
Four months of rent.
You got $200 from your grandma for your brithday. What should you do first?
Record it as income in your budget.
Stick it under your bed for safekeeping.
Deposit it all straight into your savings account.
Spend it.
What is the name of the document that tells you what you need to pay on your credit card?
Overdraft
Lease
Deposit
Statement
What happens if you go into debt?
You will need to pay back a minimum amount ever month.
You will likely pay more than you borrowed due to interest.
Your credit score can be negatively affected.
All of the answer choices you see will happen.
You charged $500 to your credit card to buy a new TV and paid it off after 6 months. With interest, you paid back a total of $600. Which of the following is the principal in this situation?
$500
6 months
$100
$600
If you decide to rent a place to live, you will need to sign a what?
Mortgage
Rental Withdrawal.
Lease
Claim
If you pay off only the amount owed on your credit card each month, but don't pay it off completely, what's that called?
Making your minimum payment.
Paying your balance.
Making your interest-avoidance payment.
Paying your dues.
Your bank account balance is -$52.79. After the $307.74 deposit from your job, what is your new account balance?
$316.95
$256.92
$265.29
$254.95
If you get charged an overdraft fee, what does that mean?
It was time for the monthly fee you pay to maintain your account.
You spent MORE than what was in your checking account.
You went over the limit of transaction per month.
You wrote three checks that month ad you have to pay $10 fee for each one.
Why wouldn't every purchase you made show up on your account statement?
Some times purchases take time to clear.
Only purchases over $100 are included on your bank statement.
Your account statement only shows withdrawals, not purchases.
Your statement only includes suspicious purchases.
How often are you required to make payments on an auto loan?
Once a week.
Every other week.
Once a month.
Every time you get a paycheck.
Your new health insurance has $4,000 deductible. What does that mean?
You will pay the insurance company $4,000 a year to cover all your medical expenses.
Your insurance will cover up to $4,000 of your medical expenses each year and then you will have to cover the rest.
You will need to pay $4,000 of your medical expenses each year before your insurance covers the rest.
Your insurance will pay up to $4,000 for each medical visit you have.
What is the difference between net and gross pay?
Gross pay is your total paycheck before taxes and deductions, and net pay is what you take home after taxes.
Net pay is your total paycheck, and gross pay is what you take home after taxes.
Gross pay is what you get from a full time job, and net pay is what you get from a part time job.
Net pay is what you deposit into an account, and gross pay is what you cash.
Your employer withholds money from each paycheck. What is the money used for?
To make up for hours of work you missed.
To pay for federal and state taxes.
To maintain your office building.
To deposit into a separate company account.
Which of the following would you include under your "UTILITIES" budget?
Your college savings fund.
Your electric and heating bills.
Your grocery budget.
Your car repairs.
What is health insurance copay?
The amount you pay when you visit the doctor.
The amount you pay for insurance each month, regardless of if you go to the doctor.
The tip you give to the doctor if you think they did a good job.
The amount your insurance will be required to pay after you visit the doctor.
There are many costs associated with owning a car. Which of these is NOT something you will need to pay for? (Hint: Which of these have we not talked about when we discuss owning a car.)
Maintenance.
Registration.
Inspection.
Arbitration.
You walk outside only to find that your car has been towed because you were parked illegally. You paid the towing company with a check and took this unexpected expense from which budget?
Entertainment
Utilities
Reserves
Rent
You decide to stop at the ATM and get money out of your account before going to the store. You're making a(n):
Claim
Credit
Expense
Withdrawal
Coach Duley buys a house on a 20 year mortgage LOAN. Ms. Scott buys a house for the same price on a 30 year mortgage LOAN. Both have the same percent interest rate. Who will pay less INTEREST?
Coach Duley
Ms. Scott
They will pay the same amount.
There is not enough information to determine the answer.
Ms. Scott asks Ms. Elder if she can borrow $100. Ms. Elder says yes, but she has to pay her back, and she charges $10 in interest each day. If Ms. Scott pays Ms. Elder in 5 days, how much will Ms. Scott pay?
$100
$175
$200
$150
Ms. Scott asks Ms. Elder if she can borrow $100. Ms. Elder says yes, but she has to pay her back, and she charges $10 in interest each day. If Ms. Scott pays Ms. Elder in 5 days, how much INTEREST will Ms. Scott pay?
$50
$100
$150
$75
Ms. Scott asks Ms. Elder if she can borrow $100. Ms. Elder says yes, but she has to pay her back, and she charges $10 in interest each day. If Ms. Scott pays Ms. Elder in 5 days, how much PRINCIPAL will Ms. Scott pay?
$100
$150
$50
$70
If you have a loan, you are in what?
Debt
Trouble
A serious relationship
Why am I learning about this unit?
Because Ms. Scott wants me to be ready to deal with financial situations in the real world.
Because Ms. Scott wants me to have a successful job one day where I have a pay stub, and I can understand how to read it.
Because Ms. Scott doesn't want me to get ripped off by loan and credit card companies one day.
All of the answer choices here are pretty darn good reasons for me to learn about personal finance!
