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WorksheetsFinancial Literacy Everfi 2025
Total questions: 76
Worksheet time: 39mins
Why should you work to be an informed consumer?
To stay informed about trends
To get the most value for your money
To ensure you pay the right sales tax
To spend the least amount of money
A 10-ounce bottle of your favorite lotion that you use each day costs $9.50. The 5-ounce bottle only costs $5. Which is the better deal and why?
The 5-ounce bottle is a better deal because it costs less.
The 5-ounce bottle is a better deal because you don't need that much.
The 10-ounce bottle is a better deal because the price per unit is lower.
The 10-ounce bottle is a better deal because you use it every day.
Which review of an online clothing store is more trustworthy and why? Review A states: “All 5 of the shirts were high quality but small. Order a size up” (verified purchase). Review B states: “I love everything from this site. Don’t miss out on their great sales” (sponsored review).
Review A is more trustworthy because they gave more details about their purchase.
Review A is more trustworthy because it was a verified purchase
Review B is more trustworthy because they let you know about sales that can save you money.
Review B is more trustworthy because the company spent money paying them to leave a review.
Which of the following is accurate about the benefits and risks of using credit cards to make purchases?
Credit cards come with fraud protection, but credit card numbers can be copied by identity thieves.
While credit cards are accepted almost everywhere, they put you at higher risk of being overcharged at the cash register
3 Credit cards allow you to pay for items later, but may cause you to miss out on better deals
Credit cards allow you to spend as much as you want, but are not accepted for most transactions
Which of the following are things a skilled consumer does?
Research before buying, buy only from clearance sales, avoid using credit, consider unit prices
Research before buying, buy only what you need, consider unit prices, choose the best payment method
Buy only what you need, shop locally, avoid using credit, buy only from clearance sales.
Buy only from clearance sales, pay in cash, consider unit prices, buy only local goods.
Which is a good way to make an informed decision about a purchase?
Read reviews from other consumers
Read the product descriptions online
Buy the Reviews if you'd like to review. lowest priced item
Buy the highest priced item
Are sponsored reviews or verified purchaser reviews more reliable? Why?
Verified purchaser reviews are more reliable because the reviewer knows more about the product
Verified purchaser reviews are more reliable because the reviewer isn't being paid for a positive review.
Sponsored reviewers are more reliable because the reviewers is being paid for their honest opinion of the product.
Sponsored reviews are more reliable because the reviewer is an expert in the field.
What is a risk of using cash?
Paying more for purchases
Not having fraud protection
Not being able to shop in stores
Paying interest on purchases
Alida works from home. Which item is a want for her?
Cell phone
Internet
Groceries
Streaming service
Jasmine just received her paycheck. To manage her money, she categorizes spending by needs, wants, and savings and debt. What money management strategy is Jasmine following?
the envelope method
50-30-20 rule
managing money
pay yourself first
How is money divided using the 50-30-20 Method?
Needs, wants, savings
Needs, stocks, bonds
Savings, expenses, emergencies
Wants, needs, retirement
Dominic has four unexpected expenses, including a broken TV, increased insurance costs, a broken down car, and a hole in a shoe. Which of these expenses would be considered an emergency?
television
insurance
car repairs
new shoes
Which list describes needs?
Shelter, warmth, food
Warmth, entertainment, shelter
Entertainment, electronics, food
Electronics, food, shelter
Tarik works in a restaurant and gets paid in cash. He's used to dealing in cash, but he needs a system to help him physically divide his cash each month. What money management strategy should Tarik use?
50-30-20 Method
Envelope Method
Avoiding debt
Investing in stocks
What can a budget help you do?
Prioritize expenses and track spending
Track spending and increase your income
Use credit and prioritize expenses
Increase your income and use credit
How can a budget help you reach your financial goals?
Budgeting helps track spending and increases savings.
Budgeting reduces credit card interest rates.
Budgeting can help you make smart investments
Budgeting allows you to earn more money over time.
What should be prioritized when creating a budget?
Future earnings
Career path
Credit report
Needs and wants
What does "pay yourself first" mean?
Pay down debt before doing any spending
Put money in your savings account before you pay other expenses
Split your money according to how much you want to spend on each bill or expense
Spend your money on your wants before you spend on your needs
. In the 50-30-20 Rule, 50% of your income should be spent on _____________.
Debt
Savings
Needs
Wants
Carlos wants to start a budget. He is planning on using the 50/30/20 method. He's categorizing his expenses. How should he categorize paying his insurance?
Debt
Savings
Needs
Wants
Match the following
Income
The money a person gets from a job or for performing a service
Savings
Money that is set aside for later use
Expenses
Items that use up one's income
Budget
A plan for tracking a person's income and expenses.
Which budgeting method involves the use of placing money in separate packets to meet particular expenses?
The ___________ method involves placing money in separate packets to meet particular expenses.
envious
environment
envelope
enviable
Kylie plans on using the 50/30/20 rule for budgeting. How will she split her budget?
50% needs, 30% wants, 20% savings
50% budget, 30% needs, 20% wants
50% saving, 30% needs, 20% wants
$50 needs, $30 wants, $20 savings
What is the benefit of a checking account?
It allows you to save money and earn interest.
It helps you spend money without carrying cash.
It allows you to spend money and pay the bill later
It helps you invest money and gain a greater return.
Your favorite cousin Briar's birthday is coming up, and you'd like to gift her some money from your checking account. What is the benefit of gifting money via check?
It is better because you get to earn interest.
It is safer because you can trace the transaction.
It is faster because money will be available instantly
It is cheaper because it has a flat fee per transaction.
Alejandro realized that he forgot his wallet when he was about to pay at a store. He only has his smartphone with him. How can he make a payment with money from his checking account?
He can use a mobile payment app with his phone.
He can write a check with his mobile banking app.
He can send his checking account number via text
He can show a picture of his debit card in his phone
Camilla just opened a new checking account. How can it help her better manage her money?
She can get a greater investment return.
She can earn more interest to save money
She can check her transaction history easily.
She can borrow money and pay it back over time.
Using your mobile banking app, you can .
write checks
deposit cash
withdraw cash
deposit checks
Which of the following items describe features of a checking account?
high fees
credit card
high interest
debit card
To deposit a check using a mobile banking app, you have to .
check your interest rate
have more than one account
upload pictures of your signed check
mail the check to your financial institution
Overdraft protection helps you cover a purchase in your checking account
when you lost your debit card
when you don't have enough funds
only if you are investing with your money
only if you are paying with a mobile payment app
What is the benefit of a savings account?
A savings account helps you track your spending.
A savings account creates investment opportunities.
A savings account allows you to borrow money.
A savings account earns interest.
Louie just opened his first savings account. What is one way that it can it help him manage his money?
It can give him access to a debit card.
It can help him spend money more easily.
It will keep his money safe
It can loan him money to pay back over time.
Lilly wants to save money for unexpected situations like emergencies. Which savings feature would benefit her the most?
earning the highest interest rate
easy access to her money
mobile banking alerts
no banking fees
Why do financial institutions offer you higher interest rates for Certificates of Deposit (CDs)?
They are paying you back for fees and interest that you have prepaid.
The interest you earn is only borrowed and must be repaid at the end of the term
You must keep your money in the account for a set amount of time.
You'll be required to invest your interest funds with the same institution.
Keira is new to earning money and saving. She doesn't have a lot of money to open an account. Which savings option would be best for her?
Savings Account
Money Market Account (MMA)
Certificate of Deposit (CD)
Certificate of Deposit (CD)
Sawyer just got his learner's permit and can't wait to buy his first car. He received a large sum of money for his birthday and put it in an account to help it grow. He opened an account that required a large initial deposit, but that pays a high interest rate and allows him easy access to his money. What kind of account did Sawyer open?
Savings Account
Money Market Account (MMA)
Certificate of Deposit (CD)
Checking Account
Which of the following best describes a loan?
A type of insurance coverage for unexpected losses
A borrower promises to repay money from a lender
A government grant for education
A tax deduction for mortgage interest payments
Margo wants to purchase a new car. She doesn’t have enough in savings to cover the cost. She decides to look into loans from her bank. How can taking out a loan help Margo with her car purchase?
It can help by reducing her total amount of debt
It can help by not requiring any immediate down payment
It can help by spreading out the expense over time
It can help by having no impact to her credit score
Which best describes the difference between secured and unsecured loans?
Secured loans require collateral, while unsecured loans do not
Secured loans usually have higher interest rates than unsecured loans
Secured loans do not appear on your credit report, while unsecured are reported
Secured loans have more flexible payment plans than unsecured loans
Elliott renovates his home using a loan that requires him to sign over the title to his car if he doesn't pay as promised. What type of loan does Elliott have?
Education loan
Interest-free loan
Secured loan
Unsecured loan
How do loan terms affect the cost of credit?
Longer loan terms have lower monthly payments and lower interest
Shorter loan terms have higher monthly payments and lower overall interest
Loan terms are based on your pay schedule and how often you get paychecks
Loan terms only apply to loans with collateral but do not apply to those without collateral
Aisha needs a loan to finance her latest startup. She wants a loan with the lowest overall interest costs. She’s considering a 3-year loan with an 8% fixed interest rate or a 5-year loan with a 6% fixed interest rate. Why would Aisha pick the 3-year loan?
It has a lower total cost.
It has a smaller monthly payment.
It has a lower interest rate.
It has a higher loan amount.
A lender offers Frank a high-interest loan based on how much he makes at his job. He’ll have to pay it back quickly too, within the next month. EVERFI: Financial Literacy® for High School 3 Which type of predatory loan offer did Frank experience?
Bait and switch
Payday loan
Hidden fees
Phishing scam
Emery applies for a loan online to help cover living costs while in college. Later, she notices her payments aren’t impacting the balance much. Looking closer, she finds extra fees in the agreement. Which type of predatory loan offer did Emery experience?
Bait and switch
Payday loan
Hidden fees
Phishing scam
A positive return on investment for education happens when
your earnings potential is higher than the cost of your education
you calculate earnings after working for one year after college
you attend a public university and do not take out loans
you use federal student loans to attend a private college
If your earnings potential is higher than the cost of your higher education, you will have a
negative return on investment for higher education
neutral return on investment for higher education
positive return on investment, depending on your major
positive return on investment for higher education
Which of these is something to consider when trying to get a positive return on investment for higher education?
The total cost of attendance
The cost of tuition
The cost of a meal plan
The cost of books
Jobs and careers that require degrees or certificates generally jobs that require little or no training.
pay about the same amount of money as
pay more money than
have fewer responsibilities than
earn less money than
The total cost of attending a university includes
tuition, housing, food, books, and other costs
student loans and federal grants
tuition, scholarships, grants, and loans
scholarships, grants, and other forms of financial aid
Carol became an accountant by starting her training at a community college, followed by transferring to a bachelor's degree program at her local public university. How likely is it that she will have a positive ROI?
Very likely, because attending college guarantees a job after graduation.
Not at all likely, because she did not attend a four year college for all four years.
Very likely, because she spent less money the first two years of college and is currently employed.
Not at all likely, because she is not in a profitable career field.
Which type of financial aid is considered free money?
Grants
Work-Study programs
Federal student loans
ROTC
What is the main benefit of taking out a federal student loan instead of a private loan?
You can defer paying your loan until 5 years after graduation
You may qualify for loan forgiveness after you graduate
You will have a higher interest rate for a federal student loan
You can pay the principal down faster on a federal student loan.
Which of these places would be a good place to look for a scholarship?
State capital
Court house
College website
Online job board
When do you need to apply for the Free Application for Federal Student Aid (FAFSA)?
The year before college and every year you attend
Two years before college and every year you attend
Once, after you have been accepted into college
Once, after you have completed your first semester
Rosa is getting ready to fill out the FAFSA. Which of these documents will she need to fill it out?
Individual tax returns
High school transcript
Driving record
Most recent pay slip
Marcus is a high school senior in Atlanta. He plays baseball and is president of the mock trial club. He would like to major in political science in college and become a lawyer. Which of these scholarships would he be qualified to apply for?
City of Atlanta basketball scholarship
Teach for America student scholarship
American Bar Association law scholarship
Literary Bard Society student scholarship
Health insurance, paid time off, disability, retirement plans, and tuition reimbursement are all considered
Intangible benefits
Gig economy benefits
Workplace benefits
Educational benefits
Health insurance, paid time off, disability, retirement plans, and tuition reimbursement are all considered
Intangible benefits
Gig economy benefits
Workplace benefits
Educational benefits
Which of the following is considered part of your workplace benefits?
Increased work experience
Life insurance
Your salary
A short commute
Which job would be considered gig work?
Police officer
Pet sitter
Lawyer
Nurse
Which of these things would be considered an advantage of gig employment?
Lack of benefits
Providing your own transportation
Paying for your own supplies
Having a flexible schedule
Which of these factors may make you more competitive in the job market?
Being under 18
Having a higher education degree
Living in a rural area
Living in your own apartment
Kai wants to get a gig job, but he does not have a car, a bike, or another form of transportation. Which of these jobs would be a good fit for Kai?
Neighborhood dog walker
Food delivery driver
Rideshare driver
Personal grocery shopper
What is withholding tax?
Money an employer deducts from an employee's wages to pay to the government.
Money that is used to pay for an employee's health insurance benefits
Money that is used to contribute to an employee's retirement 401(k) plan
Money that the employee receives after deductions are taken out of a paycheck.
Amla works as an administrative assistant. Her earnings before taxes are $1,840 bi-weekly. What number does $1,840 represent?
Her net pay earnings
Her gross pay earnings
The amount she pays for FICA tax
Her standard deduction
What does it mean when the money in your 401(k) is vested?
You can keep the money your employer contributed, even if you leave your job.
You will not have investment gains in your 401(k)s Work if you would like to review. employer-sponsored retirement plan.
You will never have to pay taxes on your employersponsored retirement plan.
You can withdraw your money at any time without a penalty fee from the IRS.
Which of these types of insurance is a benefit that employers may offer you when you start employment?
Renters' insurance
Auto insurance
Homeowners' insurance
Vision insurance
Josh just started a new job. He earned $1,900 for two weeks of work, but the amount on his paycheck was only for $1,100. What is the most likely reason for why this occurred?
He did not account for withholding taxes or deductions.
He chose not to fill out a W-4 form when he started his job.
He declined to participate in the company's 401(k) plan.
He declined health insurance coverage.
Why do you have to fill out a W-4 when you start a new job?
To opt in to employer-sponsored benefits like health insurance
To document what money should be withheld from your paycheck
To agree to a vesting schedule for your company's 401(k)
To determine your gross pay on your pay stub
What is the main purpose of having auto insurance?
To protect yourself against unintentional costs and financial losses
To be able to legally drive a car with other passengers across the U.S.
To get out of paying any money out of pocket in case you get in an accident
To elect a cost saving premium so you can save the most amount on your policy
What would happen if your car were stolen and you didn't have auto insurance?
Your car loan institution would be responsible for replacing your car
You would still have to pay off your car loan in full.
The car dealership where you purchased your car would replace it.
You would not be required to pay the remainder of your car loan.
Anthony caused a minor accident when he hit another car. Anthony's insurance company said that he needed to pay $500 before they could pay the claim. What does the $500 most likely refer to in this insurance policy?
His comprehensive insurance
His homeowners insurance
His health care copay
His auto insurance deductible
What type of car insurance would you need to use if you damaged part of your neighbor's house in a car accident?
Comprehensive insurance
Bodily injury liability
Property damage liability
Collision insurance
Meri's roof was recently damaged by a hurricane. Luckily, she has homeowners insurance, and files a claim that gets approved. What will this insurance help her do?
Her homeowners insurance will help her pay the costs of her roof repair.
Her homeowners insurance will help her start a neighborhood clean up project.
Her homeowners insurance will help cover any damage to her car
Her homeowners insurance will pay 70 percent of her salary for up to 6 months.
Zack is 25, lives alone in an apartment, and works as a freelance developer. Why should he consider purchasing short-term disability insurance?
So he will have monetary protection in case he is unable to work due to illness or injury
So he will not have to purchase additional health insurance for work related injuries
So he will not have to increase his life insurance coverage over the next 10 years
So he will have rental reimbursement coverage in case he can no longer afford his apartment
