CCR financial literacy test

For most careers, which degree will most likely result in the highest lifetime earnings?

Bachelor's degree

(blank) are good places to look to find your current expenses when building your budget.

Bank and credit statements

Which 2 items are important to consider when selecting a credit card?

Both APR and fees

Which payment option takes money out of your bank immediately?

Debit card

What helps you prepare for unexpected expenses?

Emergency fund

What possible tax or deductions may show up on your paycheck?

FICA, retirement savings, federal income tax, and state income tax

What are 3 benefits of using a budget?

Helps reach short and long term financial goals, helps prioritize your spending, helps keep track of the money you receive

What should you do before you use an ATM?

Inspect the ATM to make sure it wasn't tampered with, check for any suspicious people lurking nearby

How can insurance protect you from financial loss?

Insurance can cover you or your property in case of an accident, theft, or another unpredictable event.

What are 3 benefits of having a good credit score?

It will be easier to get an apartment, you'll get better interest rates on loans, when you need a loan you'll have more offers to pick from

Which savings account will earn you the most money?

One that compounds interest daily

How is an advertisement different from a comment from a regular consumer?

The advertisement is likely one sited

what is net pay?

The amount of money your paid after all taxes and deductions are taken out of your paycheck

How is having a security system for your home a risk management strategy?

The security system will alert authorities and deter criminals, protecting your valuable and property.

A pack of 24 pencils is more expensive than 12 pencils, but why could buying the 24 pack be the better deal?

The unit price is actually cheaper in the 24 pack

Why is it important to reconcile your bank statements?

To determined if you were charged fees, to detect any errors, and to avoid spending more than what is in your account

What is the purpose of the W-4 form?

To inform your employer of how much federal income tax to withhold from your paycheck

Your employer sends you a (blank) form that tells you how much you've made and how much you've paid in taxes in the last year.

W-2

What will happen to your credit score if you do not manage your debt wisely?

Your credit score will go down

Textbooks, transportation and room and board are all...

additional costs for attending a college or university

Which type of bank account typically offers the least (if any) interest?

checking account

Which forms of payment are linked to a bank account which limits the amount of money you can spend to balance in your account?

checks and debit cards

When looking for pre-approval on a car loan you should...

compare pre approval offers and select the one that is best for you

When you are deciding what to buy, you should...

compare the unit price of items similar to the one you want

What can be included in a benefits package available from your employer?

disability insurance, paid time off, and health insurance

the (blank) is a flexible market that allows you to work short-term, independent jobs.

gig-economy

The envelope method, notebook and pencil, and online software are all methods of (blank)

tracking your spending.

The price of a single item within a group of items is known as the (blank) of the item.

unit price

Making a good purchasing decision requires (blank)

waiting until the product is on sale, reading reviews of the product, comparing prices of similar items

If there is a mistake with one of your bank accounts, who should you contact to resolve the issue?

your financial institution

When filing an insurance claim, the policyholder must pay a (blank), which is the amount you owe before insurance will cover the rest of the bill.

deductible

Preparing to pay for higher education can start in 9th grade or earlier by...

opening a 529 plan

Paying only the minimum balance on your credit card can lead to...

paying more interest

Wearing a seat belt, not texting when driving, and driving carefully are all examples of...

risk management strategies

Taxes are used to help fund what? (3)

they are used at the federal state and local levels, roads and emergency services, and schools and government departments

Secured loans are less costly than unsecured loans because (blank)

they usually have a lower interest rate.

What should be considered when setting a current budget?

your financial goals, needs and wants, and savings

What are common features of financial institutions? (3)

direct deposit, paper checks, and checking and savings accounts

What do you need to do to help you protect yourself from identity theft and fraud?

freeze your credit, contact lenders to address incorrect information, and regularly monitor your credit report

Check cashing companies are known for charging (high or low) fees?

high

Liability insurance is...

insurance that will pay for injury to another driver and/or damage to their car if you are in an accident. It doesn't cover injuries to yourself.

Everyone interested in postsecondary education should complete the Free Application for Federal Student Aid (FAFSA) because...

it allows you to be eligible for federal student aid and other scholarship grants

Why is it important to have insurance? (2)

it's important to have insurance can protect themselves from losing and lot of money in the event of an unpredictable event or something happens to them or their property, so individuals can defend against the possibility of financial loss due to unpredictable events.

What additional costs to a four year university will most likely be the most expensive?

room and board

What is one of the best ways to get reliable information about a product?

search online reviews

Unexpected expenses... (3 things)

should be planned for, may cause you to be unable to pay necessary bills, and can make it hard for you to stick to your budget

An insurance premium is paid by...

the policyholder

Making the choice to spend money on post secondary education pays off in the long run because:

the salary you earn with a degree will pay back the cost of college over your career

What type of federal funding is free money, but is based on financial need only?

Federal grants

What are 3 things you need to know about Free Application for Federal Student Aid (FAFSA)?

You can fill the form out online or on paper. Each state may have a different deadline for state financial aid. You can fill out the FAFSA if you are an independent or a dependent.