Personal Finance
You have a credit card and the average balance on that card, year after year, is $4000. The credit card company charges 28% annual interest on your average balance. How much extra money would you have available each year to put into investments if you weren't paying interest on that credit card debt
$1,120
How much money do people around the world spend on gambling in one year
$100 billion
Compared to just having a high school degree, how much more money will you make per year if you obtain a four year degree
$27,000
You have $500 in your account. You are very responsible. What is the maximum amount of money you should spend
$400
What is the maximum you should spend on housing if your gross income is $1800 per month
$600
You have $64,000 in a savings account that pays 2% annual interest in the inflation rate is 3.24%. How much buying power in dollars will you lose in one year because of inflation?
$793.60
Say, your savings account pays 1% interest and inflation is at .5%. What is your real rate of return?
.5%
Which two statements give good definitions of financial credit? (Pick the numbers) 1. Financial credit is an arrangement for you to pay at a later date. Loans and credit cards are a form of credit. 2. Financial credit is the list of the cast and production crew that runs at the end of a movie. 3. Financial credit is recognition by the school that you have fulfilled one of the study or course obligations toward graduation 4. Financial credit (for instance, your credit rating) is one way that lenders, businesses, and employers may judge and individual's trustworthiness
1 and 4
By not negotiating the price of your first car purchase, you have a $1000 bad money burn. how long will it take you to earn back the thousand dollars you just threw away if you take home $10 per
100 hours
Every year, how many people in the US spend time working for a charitable cause
100 million people
Using the rule of 72, how many years would it take to double your money if your ROI is 4%
18 years
Which of the following expenses are usually fixed? 1. Eating out 2.Monthly insurance payments 3.Paying the rent 4. The utility bill 5.Your bill from a clothing store 6. Snacks during the day
2 and 3
In a story in module one called "Looking for a Roommate" how much money did one girl lose in the Nigerian scam?
3,500 dollars
Which of these credit scores represents the worst credit rating. 1. 702 2. 350 3. 810 4. 512
350
you have a credit card with a $600 limit. You plan to always pay your card off in full each month before the grace period ends. What is the amount you can safely owe on your card?
480 dollars (multiply the limit by .8)
What ROI will you need to double your money in 12 years
6%
Native advertising chemical and all of the following except: a. Independent journalists, B. promoted posts, C. News articles, D. Recommendation widgets
A
Which of these will most likely have a positive affect on your lifestyle?
A college degree or a skill-based education
Which of the following statements is true
A debit card normally has a MasterCard or Visa logo on it
Landlords have rights too. Which of the following is not a right of the landlord
A landlord can't keep all of your security deposit if you do not take out the garbage one day
Why do many experts recommend longer time horizons if you're making high risk investments? Choose the most correct answer
A longer time horizon means you have more time to recover any investment losses
According to full proof and most consumer groups, credit cards have a huge and usually negative impact on a young persons ability to budget and save. Tell us which statements about credit cards are correct. 1. Every time you use your credit card you are borrowing money from a stranger 2. My credit card company says that I can owe up to $1000 on my credit card. Therefore it's OK if I always owe $950 on my card. Owing that much won't hurt my credit as long as I pay my minimum payment on time. 3.Mini credit card companies charge a teaser rate to get you to take their credit card and then raise that later 4.According to full proof, and many other consumer groups, some credit cards designed for young people are the worst credit card you could ever get 5. Credit card companies charge you interest anytime you charge a purchase, unless you pay that off before the end of your grace period. 6.Making the minimum payment on a credit card is a really dumb thing to do, and less you love throwing away lots of money. 7.Virtually every credit card company wants you to charge more on your credit card than you can afford to pay off in full each month 8. My credit card company sends me checks in my statement that allow me to spend money easily. I should never use those. credit card companies normally charge rip off interest rates, if you borrow money using these checks. 9.I should never get a cash advance on my credit card, unless it's an extreme emergency. Most credit card companies charge rip off interest rates on cash advances.
All of the above
Which items below would be good reasons to regularly keep track of your personal spending records? 1. Keeping records could help you control your spending. 2. Keeping records could help you develop a budget. 3. Keeping records can help you build good money habits
All of the above
Which of the following statements is true about an ATM card
An ATM card allows you to draw money from your checking account and/or savings account
Which of the following corporations is not a not-for-profit organization
Apple
Which of the following statements is true? A. missed or late payments will be removed from my credit history within three years. B. The credit history of borrowers is shared with other financial institutions. This means all lenders are likely to know of any payments that you have missed. C. Your credit history is private information that may not be shared with anyone under any circumstances D. There are so many banks, credit unions and credit card companies in the world. It is too difficult for them to keep track of people who missed payments
B
You legally declare you can't pay your bills. This is a definition of what?
Bankruptcy
Why should I probably get my first credit card from the same institution that has my checking and/or savings account?
Because building a relationship with a financial institution makes good sense
Why do companies check your credit rating
Because many companies believe your credit history lets them know if you would be a good or bad employee
What is the main reason that many people end up in trouble financially and see bankruptcy as their only option?
Because they have poor budgeting skills they do not know how to manage their money
Why do you think that we name this module sucker punch choose the one best answer
Because we want you to be aware that credit cards can be as painful as an unexpected punch in the stomach. Most credit card companies are out for themselves - they are not really looking out for you. So you - that's you - have to be on the alert for the sucker punches when you get ready to choose and use a credit card
One way to improve your health, improve your self-confidence, and help yourself become more satisfied with life is to:
Become more charitable
Why should you never borrow up to your credit limit on a credit card?
Borrowing up to your credit limit on your credit card increases your debt to income ratio. Having a high debt to income ratio is one reason some credit bureaus lower a persons credit rating
If you have the extra money on hand for a down payment on a house it makes more sense to:
Buy a house because you plan on staying in the area for five years or more
You pay sales tax when you:
Buy a video game
Choose the correct statement: A. Because I have no credit and no one to help me get my first credit card, I'm going to answer the offers I received in the mail and receive a free football phone. B. Because I have no credit I will never be able to get a credit card so I will live with my parents forever. C. Because I have no credit and no one to help me get my first credit card, I may have to get a secured credit card. That's OK. That means I may have to keep some money in a savings account for a time D. Because I have no credit and no one to help me get my first card, I decide to get one of those really cool prepaid cards I've read about on the web, designed just for students
C
If you use mobile payment and you lose your phone, you should:
Cancel your credit card ASAP.
What statement below is the most correct in terms of car loans
Car loans use cars as collateral. If you do not pay your loan the finance company can take the car back
Comprehensive insurance is when your insurance company usually does what?
Covers collision and physical damage
Select the one statement accurately describes credit bureaus
Credit bureaus keep records of your spending habits for 7 to 10 years
You owe 1,000 dollars on a credit card and choose to pay the minimum payment each month. Which answer is correct?
Credit card companies love you when you pay minimum payments each month because You're throwing your money away by paying extra interest each month. Making minimum payments means it could take thirty or forty years to pay off that 1,000 dollar credit card bill.
The maximum amount of money that you can charge on a credit card is called:
Credit limit
Look at the following statements. Choose one correct answer. A. Online bill paying can make a lot of sense B. You cannot overdraw your account with online bill paying C. Checking accounts can and should be linked to savings accounts D. Both A and C
D
When should you file for Chapter 7 bankruptcy? A. When you have consulted a debt counseling service. B. When you are hopelessly in debt, have no chance of paying your bills, and need your debts discharged. C. When you have consulted a bankruptcy attorney D. Only if all A, B, and C have taken place
D
do many companies like it when you look like a fool?
Definitely! The job of many companies is to make money, not to do what is right for you...If you look like a fool, they make more money.
When deciding on an apartment what should you do first?
Develop your budget and only look at the places that fall within your budget
Which question or questions should you ask yourself when determining how much money you can afford to spend on a mortgage?
Does the company that provided me the payment guideline make more money if I get a larger mortgage, is the payment guideline from a source that does not make money on mortgages, and have I been really honest with myself and using any payment guideline
If you are saving money to buy a house in eight years your time horizon is:
Eight years
True or false? 100% of your income after you retire will probably come from Social Security and the companies that employed you
False
True or false? A rent to own company is the best place to go to furnish your apartment because it is a cheap way to get the expensive goodies you have always wanted.
False
True or false? All mortgage companies are willing to loan anyone money regardless of credit scores
False
True or false? An eviction notice usually means you have to move out. But you do not have to move out until your rental agreement expires
False
True or false? Checks should be written in pencil so that you can easily correct mistakes
False
True or false? Community college credits never transfer to a four-year institution
False
True or false? Credit score is a three digit number which reads how much a company likes you personally
False
True or false? Even if you can't afford it you should always donate at least 5% of your earnings to charity
False
True or false? Gambling only has to do with actual money. You cannot gamble with other things.
False
True or false? Generally, higher risk means you will have a lower rate of return on your investments
False
True or false? I should take any credit card I can get from a company regardless of terms and conditions
False
True or false? If I make a lot of claims on my insurance, my insurance cost will probably go down
False
True or false? If the rate of inflation is higher than your interest rate on your savings account you are gaining buying power
False
True or false? If you have credit problems you are not going to pay more in rent or security deposits
False
True or false? If you've lost quite a bit of money, then you're automatically do to win eventually. It's just a matter of time
False
True or false? In order to buy house you were always required to put at least 25% down to get a mortgage
False
True or false? It will always take at least seven years to rebuild bad credit into good credit
False
True or false? Many credit card companies will let you determine your interest-rate and your credit limit when they approve you for their card
False
True or false? Most businesses only tell you the good things about their product or service. Your job is to buy a product or service based on what the business says
False
True or false? Retirees are the fastest growing group to go bankrupt
False
True or false? The amount of risk you're willing to take in investments is define specifically as risk premium
False
True or false? The interest rate a credit card company gives you when you first get your credit card can never be changed, even if your credit gets ruined and you don't make your credit card payments on time
False
True or false? The job of any gambling operation is to make sure you never gamble over your personal limit.
False
True or false? The main job of credit bureaus is to teach you how to have a high credit score
False
True or false? The purpose of life insurance to protect your car in case of an accident
False
True or false? Utility companies such as phone, electric and gas companies generally do not care about your credit history and will always let you use their services, even if you have bad credit and even if you don't pay them
False
True or false? When applying for student loan, you should take the first loan that is offered to you.
False
True or false? You have to be rich to have a good credit score
False
True or false? You should plan on spending 2/3 of your paycheck on rent and household expenses.
False
True or false? Your employer is responsible for filing your federal tax return
False
True or false? Your parents income will be used to determine what your insurance will cost
False
True or false? Your parents score determines your credit score.
False
True or false? Your renters insurance deductible is $500.While you were at work, someone broke into your home and stole your brand new flatscreen TV which cost $1700. Your insurance company will pay you the full $1700
False
Which answer applies with fine print?
Fine print is usually where virtually all the important information is located, and you should always read the fine print. Fine print can also say the opposite of big print. Many companies like fine print because you can be confused by it and make the wrong decision
In which cases does property insurance give you coverage
Fire
In this module, we talked about the role of advertising in the free enterprise system. Which is the best answer?
For most companies, the purpose of advertising is to highlight the good things about the company's products or services. It's not the job of those companies to tell you the bad things about their products or services
If people know the chances of making a profit when they gamble is very, very small, why do they keep gambling?
For some people, gambling is fun and a good form of entertainment, some people don't understand how bad the odds are when you gamble, and gambling companies do a great job of marketing and encouraging people to believe they can really win big
If you are a person who mistakenly believes you have a better chance to win really big if you keep on gambling. What is that belief called?
Gamblers fallacy
Online gambling can be dangerous because:
Gambling alone is more dangerous than gambling with friends around you, some online gambling sites are scams, and it's usually impossible to get your money back if you're scammed, and some online gaming sites target young people, even though that is illegal
What are some of the main realities you need to except about gambling?
Gambling can never be an investment, and in the long run, gambling is always about losing money, not making money
Good credit helps bring independence. Which statement illustrates the fact that good credit helps bring independence?
Good credit can help you build a savings account. Because you pay less in interest when you have good credit, you are able to save more. Money in your pocket always gives you more options than not having money in your pocket
If I pay off my entire credit card bill before this date, I do not have to pay interest on the money I have borrowed on my credit card. What is this called?
Grace period
Good credit equals power. Which statement best illustrates that power?
Having good credit impacts what job you get and what you pay for products and services
Vinnie has many credit cards, and he did have fun with them! Then he nearly went broke. What was the main thing Vinnie did wrong?
He used one credit card to pay other credit card bills.
Should my goal be to have a high credit score or low credit score
High credit score
You can't save any money because you need every dime to pay your mortgage and bills. What answer describes your situation
House poor
What is debt to income ratio?
How much money you owe in total versus how much you make
Paid as agreed means you paid your account on or before the due date. Which statement describes the smartest move, when it comes to paying your accounts
I always pay my accounts days early
What should I do if I cannot pay off my credit card bill in full?
I should at least make the minimum payment, but should make the biggest payment I can afford
Which of these choices shows the smartest thinking
I use my credit card to build my credit and for convenience. But I try to never finance purchases with my credit card. Instead, if I really do need to finance an important purchase, I go to my credit union or bank and try to get a much cheaper loan than a credit card loan
What are the benefits if you pay all of your high interest at such as credit cards and store cards?
I'll free up money that could be invested, I'll lower my debt to income ratio, and I'll save a lot of money in interest charges.
Life insurance can usually help you with which of these cases?
If you die prematurely, if you die late in your life and your policy is still current, or if you die in an accident
Which of the following will have the most influence on your pay
If you graduated from high school or not
Not for profit organizations are:
In business to earn money for a specific purpose such as helping others. They're not in business to earn money for stockholders
What is a document that is based on the amount of risk taken on a specific outcome
Insurance policy
Which of the following is a good example of inflation?
It cost you $85 to gas up your car this month. But last month it only cost you $50
Which statement is true about savings plans
It doesn't do much good to have a savings plan if you don't know how to budget your money
Why should you do research beyond an article you read
It may be native advertising, the source of the article may not be impartial, and to learn about all alternative solutions
Why is it important to take a college entrance exam?
It may help you to get into a college, even if you don't make a high score
Which statement is true?
It's really easy to mess up your credit score
Having a ________ normally means you were just clocking in and out. When you have a _________, you are required to manage time well and plan for the future
Job/career
Which of the following people has paid on time, important requirement in credit agreements? 1. Susan borrowed $300 from her grandmother to buy an iPad and promised to pay $10 a week for 30 weeks until the loan was paid back. Susan missed about eight weekly payments but managed to pay her grandmother the whole amount by the end of the 30 weeks. 2. Carlos moved into his own apartment about a year ago. The gas and electric bills are usually due on the 25th of the month. Carlos faithfully pays those bills on the second of the next month when he gets paid. 3. Tamra's parents co-signed a car loan for her new wheels. Her monthly payment is due by the 15th of each month. So far she has made the payment each month. But on three months, she sent her payment after the due date because she had not yet received her biweekly paycheck from her part-time job. One time she was more than 30 days late. 4. Josh has a 36 month loan for his new truck. Each month's payment is due by the 10th of the month. Josh always mails the coupon and payment by the first of the month.
Josh
What do you call the person or company that is renting an apartment or house to you
Landlord
Which of these choices is the worst mistake to make when you are renting or leasing an apartment?
Let your emotions rule your decision
What is the best way to improve your credit?
Make all your payments on time, every time
Online gambling sites do a really good job with which of the following?
Making you think you are a smart gambler who will not lose money
What is true about check cashing services
Many check cashing services are rip offs because they charge huge fees, check cashing services do not help you build credit, and most check cashing services are wildly expensive compared to bank bills with a checking account
Savings accounts are usually not the best option when it comes to saving for retirement. Why?
Most savings accounts do not pay enough interest to keep up with inflation, and it is easy to draw your money out of the savings account. Most people draw their money and spend it, rather than leave it in the account for retirement.
One of the safest and easiest investments for young people is:
NCUA or FDIC insured certificates of deposit
How is a recession determined
Negative GDP for two consecutive quarters
What answer best describes a Nigerian scam
Nigerian scammers nearly always want you to send money back to them
You had a part-time job that paid you $950 in one tax year. Do you have to file a federal tax return
No
You have $400 in your checking account, and deposit a check for $700. The teller says that the $700 check is on hold for five days. Tomorrow you want to pay a $600 bill with a check. Should you write that check?
No
The business that gives you a loan or rents you an apartment is the one in charge of your credit record and credit score
No, I am in charge of my credit history
Is this statement correct? "My Social Security plus what I have put in a regular savings account will cover all of my retirement expenses. "
No. I should plan on having a retirement income that is 80% of my working income
The main job of a rental agent is to help you make the right decision, even if that means not renting an apartment from the agent. Is this statement true?
No. Most rental agents are honest. But their job is to rent you their apartment, not to send you to another apartment building
Are renting and leasing an apartment the same thing?
No. Renting usually means you have a month to month agreement. Leasing usually means you have a much longer agreement
We have discussed a few ways to increase your income without increasing your work. Choose the options that make sense. 1.Buying lottery tickets! They pay millions of dollars 2. Constantly put money - any money you can - in an interest-bearing savings account 3.Staying in school longer 4. Cut back on your expenses
Number 2, 3, and 4
We talked a lot about impulse buying and it's negative impact on both your budget and your savings. Identify each expense as an impulse or smart decision. 1.You buy items in the grocery store you hadn't planned to buy 2. You save coupons and also make a list of what you're going to buy at a grocery store before you go there 3.You love roaming through the mall and finding cool items you don't need 4.If you have money in your account, you are always thinking of things that would be fun to buy 5. The used car dealership says the sale ends at midnight so you rush down there 6. You seldom take time to think before you spend money
Number two is a smart expense. The rest are impulse expenses
Full proof talked in depth about the importance of your credit store when it comes to your budget in your savings. Assume your credit score is bad. Which of the following statements are true? 1. Your car insurance could cost more. 2. Your phone deposit could cost more. 3. Your apartment deposit could cost more. 4. Your loan (virtually any type of loan) could cost more 5.Paying cash for food could cost more 6. Your utilities deposit could cost more 7.The gym will you pay cash every day could cost more
Numbers 1, 2, 3, 4, and 6
We've talked about a lot about want versus need in this module. Assume you're getting ready to move out on your own. Identify the want items. 1. New designer shoes 2.Shoes 3.See the movie tonight 4.I really cool place to live 5.A place to live I can afford 6.The right clothes to wear to work 7.Lots of really amazing clothes for work 8.A savings account 9.The fanciest cell phone I can find
Numbers 1, 3, 4, 7, and 9
Choose the right ways to cut your variable expenses. 1.If you're going to shop at a big, fancy store, always look for real sales and don't pay full price 2. Sign up for a long-term monthly membership at a gym 3. Each month, look at all your variable expenses to see if you could reduce them 4. Always finance things like computers on your credit card 5.Consider looking at thrift shops for clothing and housing items, rather than buying things new 6.Never buy on impulse. Think carefully.
Numbers 1, 3, 5, and 6
We talk about doing your homework before spending any money. You're getting ready to buy your first car. Select all the actions that show you were doing your homework properly. 1. You should check the vehicles safety report online. 2. You should check out the manufacturers website and believe everything it says about the vehicle. 3. You should talk to the sales person at length and believe everything the sales person says without checking other sources. 4. you should check the website of independent consumer groups. 5. You should believe all the claims about this vehicle that you see on television. 6. You should research the insurance cost for a person your age buying this particular vehicle
Numbers 1, 4, and 6
Which of the answers below show bad money burns? 1. You're definitely going to a show. You decide to go to the matinee movie rather than the more expensive night movie 2. You buy a new smart phone with lots of features, but never use your phone for anything but emergency phone calls home 3. You draw money from an ATM near school, but it's not an ATM related to your bank and you were charged a fee. 4. You bought your car insurance by closing your eyes and picking a company. 5. You try to skip the convenience store and buy things from a cheaper, bigger store 6. When you bought your first car, you fell in love with it, and bought it on the spot without researching the vehicle online or negotiating the price at the dealership
Numbers 2, 3, 4, and 6
In virtually all of the episodes, we talk about the critical importance of never, ever, paying bills late - especially when you are young and when you have little credit. Which of the following statements are true? 1. If you're a few days late on your credit card payment, it's OK. You just can't be very late 2. The amount of interest you pay on virtually any loan will go up if you pay late 3. You may have trouble getting the job you want if you consistently pay late and really hurt your credit 4. As long as you pay your credit card bill early next month, it's OK to pay a little late this month. 5. you can run your credit in a heartbeat if you're young and start your credit life paying most things late - even if it's a small payment 6. A credit card company may reduce the amount of money you can borrow if you pay late 7. The cost of your car insurance can go up if you pay late and hurt your credit
Numbers 2, 3, 5, 6 and 7
We spent a lot of time talking about the key habits of millionaires when they were in high school. Check the answer identifying the habits we talked about. 1.Stay up night and day thinking of how you can spend the big bucks 2.Pay yourself first 3.Work really hard every day and don't worry about the future 4.Always think ahead 5. When you buy toys, always buy the best quality toys, especially if they are cars 6. Learn how to increase your income without working more 7.Learn how to make smart decisions when it comes to money
Numbers 2, 4, 6 and 7
What should you do when you open a checking account?
Open a savings account at the same time you open your checking account, link your checking account to your savings account, and try to sign up for true overdraft protection, even though you have to pay for it.
What choice shows people who are less likely to be hurt by gambling?
People who budget money for gambling as they budget money for other entertainment, and stick with that budget
Progressive taxation is based on the belief that:
People who can afford to pay more should pay more to allow the government to help less fortunate people
Which is the correct statement about the ability to pay principle?
People who can afford to pay more taxes should pay more taxes to help with those who can't pay a lot, and federal income tax is based on the ability to pay principle
Which group of people is least likely to be hurt by gambling
People who know their limits and make sure that they don't put themselves in debt while gambling
What statement is true about phishing scams?
Phishing scams cannot hurt you if you don't respond to them.
Why would the length of time you have had a checking or savings account help determine your credit score
Potential lenders, businesses or employers want to see your track record: how you've paid over a long period of time. Anybody can make one payment on time. What counts is how you pay overtime
Because your credit rating is low, a company charges you more interest on a loan. But the interest rate is not directly related to your credit. This company charges you as much as you can, simply because they think you have no other choices. This is a definition of:
Predatory lending
Your credit score says most companies will loan you money at 10% interest. A company agrees to loan you money at 20% interest. This is an example of what?
Predatory lending
Rate of return, rate on investment, and ROI mean the same thing. Which answer best describes these terms?
ROI is the amount of profit you receive from your investment, usually measured as a percentage of your investment
Which actions can insurance company take if you receive a DUI
Raise your insurance costs or cancel your insurance, and if you are insured on your parents insurance policy, they could raise the rate on your parents car insurance and even their home insurance
A progressive tax is a tax that:
Requires people to make more money to pay a larger percentage of their income in taxes
Which one of the following statements about risk based financing is false
Risk based financing is illegal and cannot be used by companies
Which statement is true about risk based financing?
Risk based financing is the way that lenders determine your interest rate for a loan based on how likely you are to repay that loan
You owe $2300 on your motorcycle. What type of debt is this
Secured debt
What would be the smart thing to do before applying for college or trade school?
See if the school offers a degree program that interests you, find out how much it cost to attend the college, and determine whether features the school offers that may help you. For instance, financial aid, work-study programs, etc.
If your debt is increasing, regardless of your payments and you are in danger of losing your home. What should you do?
Seek counseling from a bankruptcy attorney
Taxes normally pay for the following:
Services such as police, fire, and the military
Which statement is true about your credit score?
Since my credit score is going to impact my freedom, my job, and my goodie collection, I should start thinking about my credit score now
Which of the following things will affect your credit score
Skipping payments on your cell phone account, paying your bills on time, and paying your bills late will all affect your credit score
Health insurance is designed to cover
Some or all of your expenses related to accidents and some health issues
When you gamble you need to make sure you never:
Spend money that is budgeted for your monthly expenses
Which statements indicate smart steps for the first time investor
Start making opportunity cost decisions now. Start giving up something nice now for something a lot better later, when you get your first credit card, do you not use that credit card to regularly finance any purchases, and never invest more than you can afford to lose.
If you use a student loan to pay for college and drop out, the student loan:
Stays the same. You still have to pay the loan whether you finish school or not.
Which answer is correct about subletting?
Subletting without permission normally means you have defaulted on your agreement and may have to pay heavy penalties
You own a credit bureau. You're trying to decide which person is the better credit risk. Which statement would you choose as the best credit risk? 1. Sara borrowed $50 from her aunt to buy some DVDs when they were out shopping. She just paid her back into installments when she received her paycheck from the fast food joint where she works part time. 2. Taylor has just signed up for a two-year cell phone account. For the first five months he has paid on time. Its the only kind of credit account he has 3. Ted is just about to pay off his 36 month loan on his used RAV4. He's made 35 monthly payments on time to his credit union and is sending the 36 payment on time too 4. Rachel has been living with roommates in their own apartment at college for 18 months. The lease and utilities are in her roommates name. Rachel says she paid the bills. But the bills weren't in Rachel's name
Ted
Who should you contact first if you were having difficulties making your monthly payments on time but are not yet in default.
The actual company you owe money to
What is an insurance deductible
The amount of damages you must pay in the case of an accident
It is stupid to trust an ATM machine to tell you the correct balance in your account. Why?
The balance you see on the ATM machine or online may not include payments that haven't been deducted from your balance
According to the consumer advocates many debt settlement companies are scams. Which of the following would indicate that a debt settlement company may not be a good one?
The debt settlement company is more interested in collecting fees then in helping you with your specific debt problem, and the debt settlement company promises to get you out of debt in just a few short months
Having a bad credit history impacts every one of these items except one. What is not impacted by bad credit history? Your ability to get a car loan or any other type of loan, the fact that you're a good person, an employer's decision to offer you a job, or the interest rate offered to you
The fact that I'm a good person
Your credit score rules your life - that's reality. Which of these statements is an example of that reality?
The higher your credit score, the higher chance you have a qualifying for a loan
What is the landlord not responsible of?
The landlord is not responsible of keeping the temperature in the home at a reasonable level
Bill shares an apartment with Matt. The lease and all the utilities are in mats name. Bill pays his rent, and his share of the utility bills on time. Why does this not help Bill build a positive credit score
The lease and utility bills are not in his name
What is probability?
The likelihood that something will happen
Select the correct example of a benefits received tax
The tax that is collected at a tollbooth on a highway
Which of the following are you not responsible for in a big apartment
The upkeep of the outside of the building, including landscaping and painting the front door
Which answer best defines opportunity cost
The value of the things you have to give up to get something else
What is the main risk you face when you buy stocks as investments
The value of your investment fluctuates with the profits and losses of the company and you have virtually no control over that fluctuation
How old does someone need to be in order to start donating to charities
There is not an age limit
Which of these is false? 1. it is OK to be late on a credit card payment 2. I should try to pay off my credit card bill in full each month, because it helps build good credit 3. I should never pay more than my minimum payment on my credit card balance
These are all false
Which of these normally apply to people who have a career instead of a job?
They are able to settle down more easily, they are happier and feel more in control of their lives, and they are more financially secure.
Which choice best reflects why some people consistently make bad investments?
They didn't do their homework on the investment and therefore didn't understand the risk, they believed the person trying to sell them an investment rather than doing independent research to confirm that person's information, and they let emotion rather than common sense rule their decisions
According to fool proof, what is the main reason most people don't invest on a regular basis? Choose the most correct answer
They don't have an investment goal. That's why goalsetting is such an important part of any savings or investing plan
What are some signs of a person with a serious gambling problem?
They use credit cards and other forms of credit to keep gambling, they keep increasing the amount of debt in the hope of winning big, and they think about gambling all the time, keep spending money they shouldn't spend, and deny they have a gambling problem
Why do businesses or individuals considering giving you credit look at your debt to income ratio?
They want to see if you have enough total income to pay off all your bills. If you have the income to pay off all your bills, you are probably a better risk.
What is collision insurance?
This covers physical damage to a vehicle. Collision insurance usually has a deductible which means the company will not pay for 100% of the damages
Which payment guideline would you follow if you were deciding to get a mortgage
This guideline is issued by a group that makes absolutely no money on selling mortgages. The group only offers advice and ways to spend responsibly - and their services are free
True or false? A college or trade school graduate will make more than $8000 a year more than someone who did not graduate college
True
True or false? A good question to ask yourself when you are deciding if you should put money into savings or investments is, when will I need the money
True
True or false? According to fool proof and many other consumer groups, if you are from a family with poor money skills, chances are you will have a poor money skills as well. Now it's time to take control of your spending habits
True
True or false? According to the department of labor, finishing even one year of college raises an average person's income a lot for the rest of that person's life
True
True or false? Bankruptcy can impact your entire life, from your credit rating to your ability to get a job or even your ability to rent an apartment
True
True or false? Conservative consumer advocates suggest most people should not spend more than 25% of their take-home pay on their monthly mortgage
True
True or false? Credit cards are expensive ways to borrow money
True
True or false? Credit is an arrangement for you to pay at a later date. It is one way to determine trustworthiness
True
True or false? Gambling is something you should only do if you have discretionary income
True
True or false? How long you've had an account helps determine your credit score
True
True or false? If you have a credit card limit of $1000, you should never carry a balance of more than $800
True
True or false? If you make a late payment on a 0% interest card you're responsible for paying the entire interest from the time you opened the card
True
True or false? If you start investing a little money now you'll most likely have a lot more money than those who start investing later on in life
True
True or false? It is smart to always compare insurance cost between different companies. Insurance agents are usually good people. But a smart customer knows that the insurance agents job is normally to sell, not necessarily to tell you if their insurance coverage costs more than other insurance coverage.
True
True or false? It's stupid to trust an ATM machine to tell you your checking account
True
True or false? Liquidity is the amount of cash you have plus any other assets that you can quickly convert to cash.
True
True or false? Many companies deliberately give you repayment plans that make sure it will take you decades to pay your debt
True
True or false? Many not-for profit organizations will except money, cars, boats, groceries or time as donations
True
True or false? Money orders are not a good way to pay bills. They are wildly more expensive than writing checks
True
True or false? Not for profit organizations do not have to pay taxes on their income
True
True or false? Some financial institutions can be really bad about putting unexpected charges on your checking account
True
True or false? The cost of insurance can vary wildly between insurance companies
True
True or false? The sales tax you pay when you gas up your car is regressive
True
True or false? Unnecessary debt, like that on credit card in store charge cards, can destroy your investment opportunities. Why? Because you pay more interest on your debt then you could make on your investments.
True
True or false? When you fill out a check for a certain amount of money and then sign that check, you are guaranteeing that your account has that much money in it
True
True or false? You have a significant amount of debt due to medical issue. Your job is secure and you are healthy now. You have been advised by a bankruptcy attorney to file Chapter 13 bankruptcy. You received a second option from a good credit counselor and both the attorney and the counselor are in agreement. This is the correct way to handle a situation like this.
True
True or false? You should look at your time horizon when deciding to put money into a savings account or an investment account
True
True or false? You should think about how much you can afford when choosing a college
True
True or false? Your interest rate on your loan with the credit card company can go to big time if you make late payments, or go over your credit limit
True
True or false? my decision to go to college or my decision to drop out of college will impact the rest of my life
True
Which of these choices is not the smartest thing to do
Use my credit card to help my friends buy the stuff they cannot afford
What statement best describes a store charge card
Usually, the store card can only be used at the store or other businesses that store may own
Which tax form is given to me by my employer each tax year to show me my earnings and taxes withheld?
W-2
When buying a home, what is one of the first items you need to decide?
What your budget is and how much you can afford
What is compound interest?
When you earn interest on the interest you've already made
ATM cards and debit cards are much alike. But what is the biggest difference between an ATM card or debit card and a credit card? Choose the one right answer
When you pay with a debit or ATM card, you are not borrowing money. You're spending your own money. When you pay with a credit card, you are always borrowing money
What is the difference between a debit/ATM card and a credit card
With a debit/ATM card you are spending your own money. With a credit card you are always borrowing money
What can you look for to tell you that an article is native advertising
Words like "custom content"
True or false? Approximately $300 billion are giving to charities each year
Yes that sounds correct.
Are mortgage brokers the ones who bring them home buyers and lenders together?
Yes, and the brokers do not assume any risk
Which of the following are examples of unnecessary debt
You buy an expensive new car rather than a perfectly good used car, and you charge clothes you don't really need on a high interest store card
If you can't afford college what other good options are available for you?
You can apply for scholarships, or apply for a work study program or other jobs that allow you to go to school and work at the same time
In this module, we talk in detail about critical thinking skills. You need to work this summer. Next Saturday, you have four choices. Which choice should you make?
You can attend a summer job fair
The biggest perk or benefit you will receive for donating to a charitable organization is:
You can probably write the donation off on your taxes
We've talked a lot about fixed and variable expenses. We talked about the way these expenses impact your budget and your savings. We also talked about one big thing you can do with variable expenses that you cannot do with fixed expenses. What was that big thing?
You can usually lower your variable expenses more easily than you can lower your fixed expenses
How much will a $1.42 loaf of bread cost in 25 years based on inflation
You can't figure because you don't know the inflation rate
We talk in depth about critical thinking skills. Assume that you will be moving out on your own in three months. Which of these for choices shows the best critical thinking skills?
You decide to attend a meeting of young consumer advocates who will be talking about the problems young people have when they move out on their own
Which statement best describes putting a hold on a check
You deposit a check in your checking account, and the teller tells you the money will be available in five days
Which answer illustrates compound interest
You earn interest on the money in your savings account. Then you, in addition, earn interest on the interest
How many new accounts you have plays a role in your credit rating. In fact, too many new accounts usually hurts your credit rating. Choose an example that shows too many new accounts
You get lots of offers for credit cards, and get five within a month
Good credit gives you options. Bad credit takes away your options. Choose the one correct answer.
You have a good credit. You can choose the credit card with the lowest interest-rate. If you have bad credit, you are forced to take the credit card with which charges rip off rates
If you mismanage your checking account by bouncing checks repeatedly or ignoring overdraft notices, what results may happen to you?
You may be charged a penalty fee for a "returned" or bounced check, you may pay higher rents or interest rates because of your poor credit history, and if you aren't aware of your negative balance and don't put more funds in your account you bounce more checks and receive more penalty fees.
In this module, we said that one bill should be paid before all other bills. Which of the four choices should you always pay first
You must pay yourself first
What are some obligations you must fulfill for an insurance policy to be in effect
You need to make sure you make your insurance payments on time, and you must be accurate and truthful in giving the insurance company any information the company uses to determine their coverage and your premium
Why would a smart person keep at least $100 in there checking account at all times? Which answer is most correct?
You never know when unexpected fees or expenses will hit your checking account. And you can at times forget to write down a payment you make with your checking account or debit/ATM card. So, you are less likely to overdraw your account if you always keep $100 balance
What is the easiest way to ruin your credit with your credit checking account
You overdraw your account
You want a new cell phone. Which of these sources would be the most dependable?
You research cell phone reviews and pay a lot of attention to comments from people who don't have anything to do with the cell phone manufacturer
In this module, we say a good money burn means you have spent money wisely and bad money burnt means you have spent money you did not need to spend tell us which answer she is the best good money burn
You shop around and buy a pair of the exact same designer jeans at a thrift shop and they cost virtually nothing
Which of these are examples of opportunity cost
You skip buying new jeans and put the money in your college fund, you deposit your entire paycheck in your investment account instead of cashing it and taking your buddies out to eat, and you bring your lunch to your part-time job instead of spending eight dollars on lunch. You put eight dollars in your savings account.
Which answer is correct? If you invest your money early and often when you are young:
You will probably be able to retire early
Which of the following situations illustrates overdrawing your account
You write a check for more money than you have in your account
You loan your cell phone to Paul who runs up your bill. Whose credit will be hurt if this bill isn't paid?
Your credit
Which statement is true about your credit history and score?
Your credit history and your credit score hold the key to your financial future
Which of the following statements about your credit report is most accurate?
Your credit report can be checked once a year for free at the major credit reporting agencies
You don't keep $100 balance in your checking account, and you overdraw your account a few times which of these is the most likely result
Your financial institution will charge you an overdraft fee every time you overdraw your account, and will probably tell the credit bureaus you have overdrawn your account. The credit bureau might lower your credit rating. If the credit bureau's lower your credit rating, you get charged more on interest for loans and credit cards, and you may have to pay bigger deposits for utilities
How are your options for the future if you drop out of high school?
Your future will be greatly hindered by not graduating from high school
What are some of the factors that would influence your insurance costs?
Your gender, where you live, and the type of car you drive
What could happen if you do not shop around for the right credit card company
Your interest rate could increase even though you pay your bills on time
what is foolproof's definition of looking like a fool?
falling for anything which makes companies and other people think you're too stupid or too young to know better
True or false? Most online financial institutions and businesses will regularly send you emails asking you to update your account information by going to a link in your bio
false
True or false? Native advertisers are required to show all sides of an issue in articles they publish.
false
