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Keeping Your Money Safe and Living Unbanked

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which statement best explains the main role of financial institutions for your money?

a)

They set the prices for goods and services

b)

They decide your household monthly budget

c)

They help you manage and protect your money

d)

They help you earn wages at your job

2.

What does FDIC or NCUA insurance generally guarantee for deposit accounts?

a)

Protection only during bank holidays

b)

Coverage only for credit card purchases

c)

Insurance up to $250,000 per depositor

d)

Unlimited protection for any balance

3.

Which is a benefit of keeping money in a bank rather than at home?

a)

No need to track spending or saving

b)

Better access to compound interest accounts

c)

Higher fees on small balances

d)

Guaranteed approval for personal loans

4.

A household is unbanked when it:

a)

Has only a savings account

b)

Uses a credit union and a bank

c)

Has no checking or savings account

d)

Has more than one debit card

5.

Underbanked households most likely:

a)

Avoid banks and credit unions entirely

b)

Have bank accounts but rely on other services

c)

Use only cash for all purchases

d)

Hold multiple investment accounts

6.

Which barrier to banking is linked to past bad service experiences?

a)

Lack of financial literacy

b)

High interest on loans

c)

Distrust of financial institutions

d)

Unemployment and job loss

7.

Which situation best illustrates lack of financial literacy as a barrier?

a)

Moving to a new city with no branches

b)

Having too many credit cards already

c)

Feeling intimidated because you never learned banking

d)

Being denied due to low income

8.

A teen loses a part-time job and closes their account to avoid fees. Which barrier does this reflect?

a)

Distrust after poor service

b)

Lack of financial literacy

c)

Unemployment causing account abandonment

d)

Belief insurance is unnecessary

9.

Which bank fee issue is highlighted as your responsibility to understand when opening an account?

a)

Hidden and unexpected charges

b)

Free ATM reimbursements

c)

Interest rate disclosures

d)

Minimum balance rewards

10.

What does being blacklisted usually mean when trying to open a bank account?

a)

Too few deposits on record

b)

Low credit score automatically

c)

Lack of photo identification only

d)

Negative financial history blocks approval

11.

Why might people in some areas face a lack of services from banks?

a)

Only online accounts allowed

b)

Too many competing branches

c)

Fewer or more expensive options

d)

Strict dress code rules

12.

Which statement best describes predatory financial services?

a)

They provide free consumer education

b)

They lower monthly banking costs

c)

They improve long-term savings

d)

They target those with limited options

13.

What is a major risk of payday loans?

a)

Extremely high interest and fees

b)

Long repayment timelines

c)

No need for income proof

d)

Government subsidy eligibility

14.

How do car title lenders secure their loans?

a)

Place a lien on electronics

b)

Require a co-signer only

c)

Hold your vehicle title

d)

Use your paycheck stub

15.

Why do check cashing stores cost you money even when you have a paycheck?

a)

They delay funds for weeks

b)

They charge a fee to get cash

c)

They return checks unpaid

d)

They require a savings account

16.

Which statement best defines a bank?

a)

A company that manages retirement investment funds

b)

A financial institution licensed to receive deposits

c)

A business that sells loans to payday lenders

d)

A government office that collects federal taxes

17.

What does FDIC primarily do for consumers?

a)

Provides payday loans for monthly expenses

b)

Approves credit card interest rates nationwide

c)

Insures deposits in bank accounts up to $250,000

d)

Sets rules for credit unions’ membership

18.

A person with no savings or checking account is best described as:

a)

Underbanked individual using alternative products

b)

Unbanked individual without bank accounts

c)

High‑risk borrower with late payments

d)

Fully banked customer with multiple services

19.

Which agency insures deposits in credit unions up to $250,000?

a)

FDIC for banks and savings institutions

b)

NCUA for federally insured credit unions

c)

FTC for consumer protection complaints

d)

IRS for federal income tax refunds

20.

If 70% of payday loan borrowers use cash for monthly bills, what is the most likely risk highlighted?

a)

Borrowers avoid all fees through credit unions

b)

Borrowers gain free cash for basic living costs

c)

Borrowers increase insured savings automatically

d)

Borrowers may rely on high‑cost short‑term loans