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Financial Literacy Baseline

Total questions: 25

Worksheet time: 13hrs 30mins

Name
Class
Date
1.

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)

A budget deficit of $200

b)

A budget surplus of $4800

c)

A budget deficit of $4800

d)

A budget surplus of $200

2.

All of the following are examples of dark patterns EXCEPT...

a)

Having customers complete a series of time-consuming steps to close an account

b)

Using colored buttons to confuse users to make an in-app purchase

c)

Having a clear "unsubscribe" link at the bottom of an email

d)

Including a countdown timer on a deal to create a sense of urgency

3.

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?

a)

Most employers charge a "payroll fee," which the company collects to offset the cost of payroll

b)

Her company is downsizing and has decided to pay her less without notice

4.

When making a decision about a financial product (loan, savings account, credit card, etc.), which of the following is the best step to take?

a)

Read the fine print of any disclosures so you understand the fees and terms of your options

b)

Do research to learn more about each of the options

c)

Compare products based on the factors you personally find most important

d)

Simply choose the option that your parents use

5.

Which should you use when creating a budget - your NET PAY or GROSS PAY?

a)

Net pay, because it’s what is reported to the government by your employer for tax purposes

b)

Gross pay, because it’s the total amount you’ve earned minus any recurring bills you owe

c)

Gross pay, because it’s the total amount you’ve earned that month

d)

Net pay, because it’s the total amount you’ve earned minus taxes and other deductions

6.

Who is taking a smart step towards protecting themselves from identity theft?

a)

Misha, who throws their expired credit card in the trash without shredding it

b)

Isaiah, who logs into his bank's mobile app using the public WiFi network at the local café

c)

Akshay, who checks his bank statements every month to verify all transactions are accurate

d)

Melody, who uses a website that starts with "http" instead of "https"

7.

Which of the following statements about car insurance is TRUE?

a)

If you pay your premium on-time every month, you won't have to pay anything extra.

b)

If you cause an accident and another driver is injured, your insurance will cover policy limits.

c)

If you have insurance and are pulled over for speeding, you won't get "points" on your license.

d)

If you are in an accident, the other driver cannot sue if you have car insurance.

8.

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?

a)

Pay it toward his credit card bill, because it has the highest interest rate

b)

Put it in the savings account so that if he does the same next month, he'll have more than $1,000

c)

Just leave it in his checking account in case he needs it next month

d)

Pay it toward the student loan, because he owes far more there than on the credit card

9.

In order to qualify for financial aid, prospective college students must submit their:

a)

PSAT, SAT, or ACT scores

b)

Financial aid letter

c)

Parent's credit score

d)

FAFSA

10.

The amount found when you subtract your grants and scholarships from a college’s cost of attendance is called:

a)

Expected Family Contribution

b)

Net Price

c)

Gross Income

d)

Loan Amount

11.

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?

a)

Complete a W-4 form

b)

Complete a 1040 form

c)

Buy a copy of TurboTax and file her taxes

d)

Complete an I-9 form

12.

Which of the following will result in your paying the LARGEST amount of interest to the credit card company?

a)

Paying off your balance every month

b)

Making the minimum payment every month

c)

Paying 20% of your credit card balance every month

d)

Saying "credit" every time the cashier asks "Debit or credit?"

13.

Which description of the difference between saving and investing is MOST accurate?

a)

Investing is best for the short-term and for emergencies while saving is best for the long-term.

b)

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.

c)

Saving and investing are the exact same thing

d)

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.

14.

Which of the following is TRUE about a Target Date Fund (TDF)?

a)

You can only sign up for the TDF that aligns with your projected retirement year

b)

It is an actively managed fund that usually charges a 1-2% management fee

c)

A TDF only invests in stocks and will adjust your money between different industries over time

d)

A TDF will automatically adjust your assets for you over time as you get closer to retirement

15.

Sylvester is taking out a loan and is confused by the jargon. Which of the following might help him?

a)

PRINCIPAL is how much he owes per month, and TERM is how much he owes overall

b)

INTEREST RATE is how much the lender charges per year for the loan, and PRINCIPAL is the amount Sylvester borrows

c)

MONTHLY PAYMENT is how much interest costs him each month, and TERM is the name of the lender

d)

TERM is the length of the loan, and INTEREST RATE is how much total money he will pay

16.

Your little sister wants to know how renters insurance works. Which description do you give her?

a)

You pay monthly premiums into a savings account, and if something goes wrong, you use the money to pay your claims

b)

Your rent payments go to the building’s owner, and that person covers your losses if something goes wrong at your apartment

17.

Which of the following is a method of accessing the money in your checking account?

a)

Buy a prepaid card using cash

b)

Deposit a paycheck from your job

c)

Insert your debit card at a store and sign the electronic machine or paper receipt

d)

Take money from the ATM using your credit card

18.

Each of the following is a benefit of using online and mobile banking EXCEPT...

a)

You can check your balances before you make a purchase

b)

You can keep an ongoing record of your deposits and withdrawals

c)

Online banking is the only way you can make online purchases

d)

You can transfer money electronically between accounts

19.

What professional document typically lists a person's education, work experience, and skills?

a)

Job application

b)

Reference letter

c)

Cover Letter

d)

Resume

20.

All the following are benefits of taking out a loan with a cosigner EXCEPT...

a)

Your credit score will be positively impacted by making timely payments

b)

You gain access to loans you might not have been approved for on your own

c)

There are no penalties for late payments

d)

Your interest rate might be lower

21.

Which of the following can be found in your credit report?

a)

Your checking and savings account balances

b)

Your credit payment history

c)

How long you’ve been a member of a bank or credit union

d)

A list of items you’ve purchased using credit

22.

Which of the following scenarios accurately demonstrates the practice of comparison shopping?

a)

Lina compares the price, reviews, and other factors for the same product offered by different retailers

b)

Zenya compares the price of a shirt to the price of a pair of pants that she is interested in

c)

Samir compares a laptop he bought a year ago to a newer version available now

d)

Anthony compares the quality of a backpack he bought to the quality of a backpack his friend bought

23.

Which of the following is a recommended way of following up with a potential employer after a job interview?

a)

Returning to the office the next day to express your continued interest in the job

b)

Buying the interviewer(s) a gift

c)

Sending a friend request to the interviewer(s) on social media

d)

Sending a personalized thank-you letter or email

24.

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.

a)

$2000

b)

Slightly more than $1200

c)

Exactly $1200

d)

The same $1000 you started with

25.

When it comes to paying for college, the first option you should consider is:

a)

Work-study, because it comes with low, fixed interest rates

b)

A grant or scholarship, because you don't repay them

c)

A private loan, because they are tailored specifically for you and your family

d)

A Federal student loan, because they offer low, fixed interest rates