If you want a low monthly payment and a lot of time to repay your student loans, you should select...
The standard repayment plan
A loan consolidation plan
A repayment plan with a short term
A repayment plan with a long term
Which statement describes a benefit of credit cards over debit cards?
Credit cards are available to teenagers while debit cards are not
Credit cards allow you to buy things now, even if you don't have the full funds to cover them
Credit cards work better for college tuition payments
Credit cards can be used for online shopping while debit cards cannot
Emily received financial aid award letters for 3 schools she has been accepted into. All of the following are true EXCEPT...
The award letters will likely be formatted differently and include varying pieces of information.
If she was awarded work-study, this is money that she doesn't have to earn or pay back.
She should be wary of Parent PLUS loans that are awarded to her because they come with significant downsides.
It may be difficult to identify which school is the best financial option.
Roxanne saved $1,000 from her summer job cleaning pools. Which of these savings vehicles would work best for her if she doesn't need access to the money for a number of years AND wanted to earn the highest interest rate?
Traditional savings account
Online savings account
Certificate of deposit
In order to qualify for financial aid, prospective college students must file their _____________.
Financial aid letter
PSAT, SAT, or ACT scores
Parent's credit score
How can you improve your credit score?
Pay all of your bills on time
Spend more money on each of your credit cards
Apply for 3 new credit cards in two month
When merchants ask, "Credit or debit?" always choose credi
Which of the following people is required to file taxes?
Brandon, who earned $600 by mowing his neighbors' lawns.
Fatima, who earned $6,200 through her own marketing business.
Troy, who earned $9,500 from his paid internship
Sonia, who earned $3,000 by babysitting her cousins every week
Every month, Tatiana's take home pay is $3200. After she does all of her spending, she's left with anywhere from $25 to $250 that she puts into her emergency fund. Her goal is to have 3 months' pay in the emergency fund as soon as possible. What "first step" would be MOST effective in reaching this goal?
Every time she is about to make a purchase, ask herself, "Is this a need or a want?
Stop making her student loan payments until she has an emergency fund built up
Try to increase her savings by at least $10 each month
Set up deposit of 250 per month from her paycheck directly into savings, and redo her budget around this savings plan
Which of the following is a method of gaining access to the money in your checking account?
Buy a prepaid card using cash
Deposit a paycheck from your job
Deposit a paycheck from your job
Take money from the ATM using your credit card
Which description of the difference between saving and investing is MOST accurate?
Saving and investing are the exact same thing
Investing occurs when you put your money in stocks; everything else is saving
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
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
Which of the following will result in your paying the LARGEST amount of interest to the credit card company?
Paying 20% of your credit card balance every month
Making the minimum payment every month
Paying off your balance every month
Saying "credit" every time the cashier asks "Debit or Credit?"
Which of the following statements about car insurance is TRUE?
If you have insurance and are pulled over for speeding, you won't get "points" on your license
If you pay your premium on-time every month, you won't have to pay anything extra if you are in an accident
If you are in an accident, the other driver cannot sue if you have car insurance
If you are in an accident and another driver is injured, your insurance will cover portions of his/her medical bills
You are budgeting your net pay of $2500 per month. You estimate your 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 budget deficit of $200
A budget deficit of $4800
A budget surplus of $200
You can't tell without knowing your gross pay
Carmen has just graduated from college and receives a bunch of paperwork from her new employer's Human Resources department. Which of the following should be her first step in making sure she's paying the correct amount of taxes?
Complete a 1040 form
Buy a copy of TurboTax and file her taxes
Complete an I-9 form
Complete a W4 form
If you want to avoid being the victim of ID theft, you should...
Only pay for things using your debit card, not a credit card.
Use the same password for all online sites, so you have only a single identity rather than multiple.
Shred all unneeded mail and financial documents that have personal or account information printed on them.
Shop only at websites starting with http:// NOT https://
StayWell Health Insurance is offering a plan with a monthly premium of $240, a deductible of $6500, and maximum out-of-pocket expenses of $10,000. Which of the following people is this plan BEST suited for?
Charles, who has long-term health problems and sees a doctor an average of 8 times per year
Jeanie, who has two children in elementary school and is having her third child this fall
Velma, who has been experiencing knee pain and is pretty sure she'll need surgery some time soon
Anthony, who sees a dermatologist yearly for his eczema but is otherwise healthy
Each of the following is a benefit of online and mobile banking EXCEPT...
You can check your balances before you make a purchase
You can transfer money electronically between accounts
You can overdraw your account without penalty
Which of the following is TRUE about having a good credit score?
You're automatically eligible to have any remaining student loan balance forgiven by the Federal government
Universities will be more likely to accept you when making admissions decisions.
Lenders are more likely to extend credit to you at lower interest rates.
You get a $100-$500 check in the mail from the Federal government as a reward.
Anna is a sophomore in high school and receives her first paycheck. She realizes that her take-home pay is substantially less than the rate she was offered when hired. Which of the following would help explain this problem?
Taxes, social security, and Medicare are being deducted from her pay
Most employers charge a "payroll fee," which the company collects to offset the cost of preparing each employee's paycheck every pay period
Her company is downsizing and has decided to pay her less without notice
Businesses typically pay high school students less than minimum wage
Angelo has a savings account holding $2000 that earns 0.5% interest, a student loan of $40,000 that charges 4.6% interest, and a credit card balance of $1500 with a 23.4% interest rate. He has a budget surplus of $300 at the end of this month. What should he do with the $300?
Put it in the savings account to invest for retirement
Just leave it in his checking account in case he needs it next month
Pay it toward his credit card bill, because it has the highest interest rate
Pay it toward the student loan, because he owes far more there than on the credit card
Samantha is new to investing and heard that Target Date Funds (TDFs) are growing in popularity among most young people. Which of the following is TRUE about TDFs?
TDFs will automatically increase your stock allocation and decrease your bond allocation as you get closer to retirement.
TDFs' popularity is due to the fact that they are actively managed by a manager.
TDFs will automatically decrease your stock allocation and increase your bond allocation as you get closer to retirement
TDFs guarantee that you will have enough money saved by the time you retire.
Sylvester is taking out a loan and is confused by the vocabulary. Which of the following explanations might help him?
TERM is the length of the loan, and INTEREST RATE is how much total money he will pay
PRINCIPAL is how much he owes per month, and TERM is how much he owes overall
INTEREST RATE is how much the lender charges per year for the loan, and PRINCIPAL is the initial amount Sylvester takes out
MONTHLY PAYMENT is how much interest costs him each month, and TERM is the name of his lender
Now that you have a part time job, you'd like to open a checking account where you can deposit your biweekly checks and then use your debit card to pay for expenses with your friends. You'll probably have at most $450 in your account at any one time. As you decide where to open the account, which account feature should you probably care LEAST about?
The interest rate
The annual fee
When it comes to paying for college, your BEST option is
a grant or scholarship, because you don't repay them
a Federal student loan, because they offer variable interest rates that start off low
a private loan, because they are tailored specifically for you and your family
work-study, because it comes with low, fixed interest rates
One of the core differences between a stock and a bond is...
Stocks are for investment accounts; bonds are for saving accounts
Stocks allow you to loan a company money; bonds allow you to own a share of a company.
Stocks guarantee a specific rate of return; bonds guarantee your rate of return will be within a specific range
Stocks are high-risk investments; bonds are typically low-risk investments.
Sammy says, “I don’t think it’s fair that I have to pay for car insurance when I’m a super safe driver.” Explain why this logic is flawed.
Keisha is filing taxes for the first time. Briefly explain to her the relationship between a W-2 form and a 1040.
Pretend you make $500 worth of purchases on your credit card, your bill arrives saying your minimum payment due is $20, and you pay that amount before the due date. Describe how credit card interest works and what you can expect to happen next.
Name three bank fees commonly associated with checking accounts, and then explain which has the potential to be most costly and how to avoid it.
Why is it so important to review your credit report at least once a year?
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