WorksheetsFinancial Literacy Quiz
Total questions: 36
Worksheet time: 19mins
It's best to develop good ________ now instead of waiting until you're on your own to figure it all out.
Money habits
Diet and exercise plans
Real estate investments
Friendships
Renting is a great option for many people.
True
False
Your rent payment should total no more than ______% of your take-home pay.
50
15
75
25
When you're ready to buy a house, the best option is a _______________.
20-year VA loan
15-year fixed-rate conventional mortgage
30-year equity loan
30-year fixed rate mortgage
What does cost of living refer to?
How much of your monthly income is budgeted specifically for your rent or mortgage
The average cost of the basic goods and services needed to maintain a certain standard of living
The level of wealth, comfort, material goods and necessities available to a group of people
How wealthy or poor you are at the time of purchasing your first home
Making periodic payments to a landlord for the use of their property is called _____________.
Down payment
Buying
Renting or leasing
Security deposit
You should rent until you are able to ________.
Buy a home the right way
Become a landlord someday
Invest in stocks
Buy amenities
Buying a house while ________ can put your ________ at risk.
In debt; home purchase
Getting pre-approved; life
Debt-free; renter's insurance
On a budget; social life
Living on campus at college will help you ________ living on your own, while living off campus will require you to ________.
Dive into; live with your parents
Ease into; pay for rent, utilities, and groceries
Get used to; cut half of your college courses
Enjoy; find roommates
Your decision to rent or buy depends on your ________.
Feelings towards renting or buying
Friends' opinions
Income tax
Financial situation
As you shop around and compare rent prices, remember that paying extra for ________ is not worth it if it keeps you from reaching your financial goals.
Amenities
Mortgages
Tax brackets
Security deposits
A house is an asset that typically will ________ value over time.
Stay the same
Decrease in
Depreciate in
Increase in
You should buy a home, even if you cannot afford it just yet. Renting is a waste of money.
True
False
You need to be completely out of debt, have a fully funded emergency fund, and have saved enough cash for a down payment before you ________.
Buy a house
Lease a house
Rent a house
Sell a house
The only time it's okay to borrow money if you can't pay 100% in cash is . . .
Getting a car lease
For home improvement projects
Buying a home (mortgage)
Renting a home
A leasing contract . . .
Can be terminated at any time without any fees or penalties
Is a legal document that allows the renter (tenant) to use the property for a period of time
Is something a roommate owes taxes on when they move in with the current renter
Should be signed immediately, even before reading it
No matter what path you choose to take after high school, the money principles stay the same. What are they?
Live on more than you make and debt dominates all.
Only use a debit card for purchases, rent-to-own loans are king, and don't open a savings account.
Invest before anything else and budget if you have time.
Save, budget, stay out of debt, live on less than you make, and be generous.
If you look at long-term costs, _________ is usually the better deal.
Homeownership
Renting
Leasing
Maintaining
It's important to read your leasing contract, because once you sign it, is enforceable by law.
True
False
What type of interest rate is locked in and won't change for the life of the loan?
15-year
Fixed-rate
Equity
Adjustable rate
When someone spends so much of their income on the costs of homeownership that they struggle to reach their other financial goals, they are _________.
Wealthy
House poor
Wise homeowners
Rent poor
A fixed-rate mortgage has a _________ mortgage rate for _________ years.
Set; a set number of
High; a large amount of
12%; 30
Good; 15
What information should a lease contain?
The names and numbers of the closest shopping malls
Property address, rental term, security deposit terms, and pet fees
Acknowledgement clause, your name, and the local restaurants available
An agreement that your rent will only be paid on a credit card
Which type of loan is not secured by a government entity and usually has the best rate and term?
FHA loan
VA loan
Family loan
Conventional loan
Learning about the costs of living before you need to cover them and creating good money habits early are both examples of __________.
Taking personal responsibility
Poor money management
Being a consumer
Wealth building
What is your mortgage principal?
The largest amount of money you are legally allowed to borrow
The down payment needed to get a mortgage
The amount borrowed (that must be repaid) to purchase a home
The first payment you make on your new home
To make living with a roommate more peaceful while you're saving money . . .
Communicate, be respectful, and be considerate
Require your roommate to pay a larger rent check than you do
Avoid talking to them in order to avoid conflict
Assume that your best friend will make a great roommate
After you hire a real estate agent, the next step in the process is to _______________.
Close on your new home
Get a home inspection
Start looking at homes within your budget
Make an offer on a home
It is impossible to get a mortgage without a credit score.
True
False
Equity is the difference between what you still owe on your home and what it is worth.
True
False
What is one of the costs of living on your own?
Must pay your own rent
Are living with your parents
The government gives you money
You automatically get a job
What are some ways that someone can save money on their rent?
Find a roommate
Build a pool
Get a shorter lease agreement
Increase utility use
What are some good questions you could ask an adult to help you prepare to be financially independent someday?
Ask parents how they pay their bills
See how my parents budget each month
Never learn how to pay rent
Ask your roommate to pay for all of the rent
Why is a 15-year fixed-rate mortgage better than a 30-year?
It costs more overall
You spend more time in debt
You pay more per month
You pay less overall
A security deposit covers the rent for the first month when moving into an apartment.
True
False
A ___________ deposit refers to money held to cover possible damage in an apartment.
Cleaning
Security
Telephone
Utilities
