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WorksheetsFinancial Literacy Quiz
Total questions: 20
Worksheet time: 10mins
Sylvester is taking out a loan and is confused by the jargon. Which of the following explanations might help him?
TERM is the length of the loan, and INTEREST RATE is how much total money he will pay
PRINCIPAL is how much he owes per month, and TERM is how much he owes overall
INTEREST RATE is how much the lender charges per year for the loan, and PRINCIPAL is the initial amount Sylvester borrows
MONTHLY PAYMENT is how much interest costs him each month, and TERM is the name of his lender
Which should you use when creating a budget - your NET PAY or GROSS PAY?
Net pay, because it’s what is reported to the government by your employer for tax purposes
Gross pay, because it’s the total amount you’ve earned that month
Net pay, because it’s the total amount you’ve earned minus taxes and other deductions
Gross pay, because it’s the total amount you’ve earned minus any recurring bills you owe for the month
Which amount is found when you subtract your grants and scholarships from a college’s cost of attendance?
Sticker price
Net price
Student Aid Index
Room & board
Which of the following is a method of accessing the money in your checking account?
Buy a prepaid card using cash
Deposit a paycheck from your job
Insert your debit card at a store and sign the electronic machine or paper receipt
Take money from the ATM using your credit card
In order to qualify for financial aid, prospective college students must submit their (a) .
Which of the following best describes the amount of money you'll have if you put $1000 into a CD earning 2% annual compound interest for 10 years? You can ignore the impact of inflation in this question.
The same $1000 you started with
Exactly $1200
Slightly more than $1200
$2000
Which of the following can be found in your credit report?
Your checking and savings account balances
How long you’ve been a member of a bank or credit union
Your credit payment history
A list of items you’ve purchased using credit
When making a decision about a financial product (loan, savings account, credit card, etc.), which of these pieces of advice is LEAST valuable?
Compare products based on the factors you personally find most important
Do research to learn more about each of the options
Read the fine print of any disclosures so you understand the fees and terms of your account
Simply choose the option that your parents use
Which of the following will result in your paying the LARGEST amount of interest to the credit card company?
Paying 20% of your credit card balance every month
Making the minimum payment every month
Paying off your balance every month
Saying 'credit' every time the cashier asks 'Debit or credit?'
Which of the following is TRUE about a Target Date Fund (TDF)?
It is an actively managed fund that usually charges a 1-2% management fee
A TDF will automatically adjust your assets for you over time as you get closer to retirement
You can only sign up for the TDF that aligns with your projected retirement year
A TDF only invests in stocks and will adjust your money between different industries over time
When it comes to paying for college, the first option you should consider is...
A grant or scholarship, because you don't repay them
A Federal student loan, because they offer low, fixed interest rates
A private loan, because they are tailored specifically for you and your family
Work-study, because it comes with low, fixed interest rates
Which description of the difference between saving and investing is MOST accurate?
Saving and investing are the exact same thing
Investing is best for the short-term and for emergencies while saving is best for the long-term
If you have less than $10,000 in an account, what you are doing is saving. If you have more than $10,000 in your account, you are investing.
Savings accounts provide a stated rate of return that is less risky. On the other hand, investors do not know what their return will be, making investing riskier.
What professional document typically lists a person's education, work experience, and skills?
Job application
Resume
Cover letter
Reference letter
Anna receives her first paycheck and realizes that her take-home pay is substantially less than the rate she was offered when hired. Which of the following would help explain why this happened?
Taxes, social security, and Medicare are being deducted from her pay
Most employers charge a 'payroll fee,' which the company collects to offset the cost of preparing each employee's paycheck every pay period
Her company is downsizing and has decided to pay her less without notice
Anna's pay is smaller than she anticipated because businesses typically pay high school students less than minimum wage
Each of the following is a benefit of using online and mobile banking EXCEPT...
You can check your balances before you make a purchase
You can transfer money electronically between accounts
Online banking is the only way you can make online purchases
You can keep an ongoing record of your deposits and withdrawals
Carmen has just graduated from college and receives a bunch of paperwork from her new job's Human Resources department. Which of the following should be her first step in making sure she's paying the correct amount of taxes?
Complete a 1040 form
Buy a copy of TurboTax and file her taxes
Complete an I-9 form
Complete a W-4 form
Sam has $2500 per month to spend. He estimates his monthly costs to be: rent of $800, car expenses of $650, utilities of $200, insurance of $350, food for $200, and other expenses of $100. What is the end result?
A budget deficit of $200
A budget deficit of $4800
A budget surplus of $200
A budget surplus of $4800
Which of the following scenarios accurately demonstrates the practice of comparison shopping?
Zenya compares the price of a shirt to the price of a pair of pants that she is interested in buying
Anthony compares the quality of a backpack he bought to the quality of a backpack his friend bought
Lina compares the price, reviews, and other factors for the same product offered by different retailers
Samir compares a laptop he bought a year ago to a newer version available now
Who is taking a smart step towards protecting themselves from identity theft?
Melody, who uses a website that starts with 'http' instead of 'https'
Akshay, who checks his bank statements every month to verify all transactions are accurate
Misha, who throws their expired credit card in the trash without shredding it
Isaiah, who logs into his bank's mobile app using the public WiFi network at the local cafe
Angelo has a savings account with a balance of $1,000 that earns 2.0% interest, a student loan with a balance of $40,000 that charges 4.6% interest, and a credit card bill with a balance of $1,500 and a 23.4% APR. He has a budget surplus of $300 at the end of the month. What should he do with the extra $300?
Put it in the savings account so that if he does the same next month, he'll have more than enough to pay his credit card bill in full
Just leave it in his checking account in case he needs it next month
Pay it toward his credit card bill, because it has the highest interest rate
Pay it toward the student loan, because he owes far more there than on the credit card
