WorksheetsCycle #3 - Financial Life Skills
Total questions: 21
Worksheet time: 22mins
Money that is backed by the government and is legal tender to spend is called what?
Reserve Money
Fiat Money
Cyber Currency
Bit Coin
Banks give out loans to people. Where do banks get the money to loan to people?
They print it from a machine.
They lend out money from savings and checking accounts
They don't loan money out, its all on a computer and not real
They steal if from another bank and give it out.
Organize these options into the right categories (financial Institutions)
Offer lowest interest rate to their members
They will help you, but they want profits.
Insured by the FDIC
Insured by the NCUA
Loan for your paycheck
Debt Trap
Use Collateral to get a loan.
Banks are _____________ businesses that offer a variety of services to the public
For profit
Non profit
Public
Private
Organize these options into the right categories
Least Risky Investment
This is a need you must have one.
Easy access with a Debit Card
Medium Risk
One from an employer is called 401K
Roth and Traditional are two types
Interest earned on deposits
FDIC insured up to a certain limit
Can't withdraw until 59 1/2 years old
Medium - High Risk Investment
A company takes your investment and spreads it over low risk stocks
High Risk
Purchase = part ownership in a company.
High Risk - High Reward
The 50-30-20 rule. 50% of your income should be spend on your (a) , 30% of your income should be spend on (b) spending and 20% should be spend on (c)
Match the following with the different ways to pay for goods and services.
Cash
Bills, Coins, universally accepted.
Check
Best way to send money in the mail.
Debit Card
quickly deducted from bank account
Credit Card
Safe, but the banks money
Phone App
Safe, quick, but need a charger
Match the following income types
Hourly Wages
Paid for each hour of work you complete
Tips
Extra money given as reward for service
Salary
Guaranteed money for a job - not hours
Capital Gain
profit made from the sale of a good
Contractor
Sign a contract for a specific job
Which answer below is NOT one of the 3 C's of Credit Worthiness?
Collateral
Capacity
Certificate of Deposit
Character
Detailed summary of your entire credit history. Includes where you lived, where you worked, and every loan you have ever received.
Credit Worthiness
Credit Report
Credit Score
Credit Karma
Your credit score is a numeric score of your credit worthiness. It consists of Credit History which is (a) , your Amount of Debt you owe which is (b) , your credit history which is (c) the amount of (d) credit you have recently received which is 10% and the types of credit you have which is also (e)
How many credit agencies are there that track your credit? Its a number 1 to 9
(a)
Which answer below is NOT a credit agency that tracks your credit score and rating?
Experian
Trans Union
Equifax
Credit Karma
There are two types of credit you can apply for: (a) credit is when you pay a (b) payment each month and eventually the balance is paid off. (c) credit is like a credit card, you just pay a (d) payment each month and is super difficult to pay this off.
What is a 'Credit Score'?
The maximum amount of credit a borrower can use
A yearly charge for credit card usage
A measurement of someone's creditworthiness
An initial cash payment for a large purchase
The highest FICO score possible is:
1600
1000
850
700
Imagine you have a habit of paying your electricity and credit card bills on time every month. What impact does this have on your financial profile?
It decreases your credit score
It has no impact on your credit score
It significantly improves your credit score
It only affects your credit score if you are paying credit card bills
What is the purpose of a credit score?
Measure of income
Indicator of spending habits
Assess crefitworthiness
Determine investment potential
When reviewing your pay stub from your jobs pay check, what percentage of your check should deduct social security payments?
6.2%
2.9%
0$
25%
Your pay before taxes and other deductions are removed is called (a) pay
Which answer below is NOT a standard deduction from your paycheck?
Federal Income Tax
State Income Tax
Social Security
Medicare
Health Insurance
