WorksheetsUnderstanding Credit Cards and Budgeting
Total questions: 14
Worksheet time: 7mins
Which of the following is a benefit of using a credit card responsibly?
It always increases your debt
It can help build a good credit score
It guarantees you will never pay interest
It allows unlimited spending without consequences
What is a credit score?
The amount of money in your bank account
A number that represents your trustworthiness to borrow money
The number of credit cards you own
The interest rate on your credit card
Which of the following is NOT a factor that affects your credit score in Canada?
Payment history
Amount of debt owed
The colour of your credit card
Length of credit history
Which Canadian financial institution is NOT a bank?
Royal Bank of Canada (RBC)
Toronto-Dominion Bank (TD)
Canada Post
Bank of Montreal (BMO)
What is the main purpose of creating a budget?
To spend as much as possible
To track and control your income and expenses
To avoid paying taxes
To increase your credit card limit
Which of the following is a good reason to compare different banks before opening an account?
To find the best interest rates and lowest fees
To get the fanciest debit card design
To avoid having to remember your PIN
To get free coffee
If you only make the minimum payment on your credit card each month, what will likely happen?
Your balance will decrease quickly
You will pay more interest over time
Your credit score will automatically increase
Your card will be cancelled
Which of the following is an example of a fixed expense in a budget?
Groceries
Rent or mortgage payment
Entertainment
Clothing
What is the legal age to apply for a credit card in most provinces in Canada?
14 years old
16 years old
18 years old
21 years old
Which of the following actions can help improve your credit score?
Missing payments regularly
Keeping your credit card balance low
Applying for many credit cards at once
Ignoring your credit report
What is an advantage of using a debit card instead of a credit card?
You can spend more than you have in your account
You avoid paying interest on purchases
It helps you build your credit score
It always comes with rewards
Which of the following is a good budgeting tip for students?
Spend first, save later
Track your expenses regularly
Ignore small purchases
Never review your bank statements
If you want to avoid paying interest on your credit card, what should you do?
Only use your card for emergencies
Pay the minimum payment each month
Pay your balance in full every month
Never use your credit card
Which of the following is a sign of a responsible bank or credit union?
They clearly explain their fees and services
They hide important information in fine print
They encourage you to take on as much debt as possible
They never answer your questions
