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Worksheets06. Financial Literacy 23-24 (Civics)
Total questions: 20
Worksheet time: 10mins
To take care of your finances, what should you track and what should you create?
Track your income and create a bank account
Track your spending and create a budget
Track your W-2 forms and create deductibles
Track your stocks and create a retirement plan
Which types of receipts should be saved until no longer needed?
House/Vehicle docs
Major Purchases
Insurances docs
Loan docs
Grocery/Household item receipts
Paycheck stubs
Utility bills
Credit card statements
Everyone is entitled to one of these once per year, completely free of charge:
Credit Report
Tax return
401k report
Domingue's new mixtape
What do lenders use to decide if they trust you to pay back a debt and what your interest rate would be if they do loan money to you?
Your street cred
Your credit score
Your rizz level
Your annual net pay
What is the range that your credit score can fall between?
300-850
0-1,000
200-800
150-950
Which of these factors does NOT affect your credit score?
Late payments
Length of credit history
Total debt used and available
Length of employment
What is the best thing to do if think you will be late with any credit payments?
Sell your house and use the money to pay off the loan
Allow it to go to collections, they will negotiate a lower payment that you can afford.
Contact the company and be willing to work out a payment plan to catch up.
Declare bankruptcy so your don't have to pay it back at all
What is the best thing to do if you have not paid on a loan and it has been sent to a collection agency?
Claim the debt as a loss when filing taxes so that you get a larger refund and can pay off the credit cards
Declare bankruptcy so the debt is removed from your credit score
Ignore the debt, and wait 7 years so it will be removed from your credit report
Negotiate with the collection agency to settle the debt
What is the biggest advantage of having a high credit score when taking out a loan?
You can receive lower interest rates
You can take longer to pay back loans
You receive higher tax returns
You can take out loans from many different companies
What are the two justifiable reasons credit cards should be used? Choose two correct answers!
To pay for emergencies that you do not have savings to pay for
Small daily spending that you can mostly pay off by the end of the month
To buy expensive things that will take years to pay off
Which of these is not part of a SMART goal?
Measurable
Trackable
Specific
Acceptable
What is it called when you focus on paying off debt with the smallest balance first. Then after that is repaid, you can apply that to the next lowest balance.
Snowball
Avalanche
Compound interest
A SMART goal
What is it called when you focus on paying off debt with the highest interest rates first.
Snowball
Avalanche
Compound interest
A SMART goal
What is the main reason people claim for having to file bankruptcy?
Being involved in an accident at work and losing their settlement case
Unforeseen personal events that they do not have the savings to manage
Inflation causing unaffordable housing, transportation and food prices
Financial scams that put them into debt and ruin their credit score
What is the typical penalty you could pay in total for cashing out early from a retirement fund?
37%
10%
50%
75%
How is APR on a loan or credit card calculated and charged?
The rate is calculated depending on your credit score and you are charged a monthly statement
The Actual Pre-existing Revenue is deducted from your gross pay
The rate is divided by 365, and you are charged interest for every day a balance on a loan exist.
You are charged a 10% penalty, and may pay up to 37% in fees and interest on the loan or credit card
What advantage do you have when you pay off a loan in a shorter period of time?
You will make smaller payments
You will be able to take out more loans once you pay it off
You will pay less money overall
You can receive more deductibles when you file your taxes
What are two things that could happen if you go over your limit or make a late payment on loan or credit card? Choose two answers that are correct:
You could be charged a flat fee
Your account could be sent to a collection agency
Your credit score could be increased
Your interest rate could be increased
You may have items you bought with that credit card repossessed
What will every job send you that allows you to do your taxes, or you can bring them to a tax professional and pay them to do your taxes for you?
A W-2 form
A FAFSA form
A 401k form
A 50/30/20 form
According to the 50/30/20 rule, how should you plan your monthly budget?
50% should be spent on essentials, 30% on savings and 20% on non-essentials
50% should be spent on non-essentials, 30% on savings and 20% on essentials
50% should be spent on essentials, 30% on non-essentials and 20% on savings
It really doesn't matter how you budget because you gonna be broke anyways
