Pen and calculator with graph for Financial Literacy website

1. Being on a budget means:

a. You pay bills every month at the due date
b. You made a plan of your expenses to be less than or equal to your income
c. You are earning enough money to be able to live well
d. Your bills are generally paid by every due date

2. How often can you get a free credit report?

a. Once a year
b. Once every 6 months
c. Once every 2 years
d. You can’t get a free credit report

3. Where could you get a free credit report with no annual fees?

c. From the U.S. Department of Finance
d. You can’t get a free credit report

4. What is considered an excellent credit score?

a. 700 to 850
b. 500 to 560
c. 561 to 600
d. 1000 to 1500

5. What is not a method to improve your credit score?

a. Pay all your bills on time
b. Maintain your older credit cards
c. Keep your credit card balances under 30% of your credit limit
d. Always pay in cash and do not get any credit cards

6. Your credit score is important because:

a. It can affect your interest rate if you finance a car or home
b. It can have an impact on whether you can finance major purchases
c. It can determine whether you can get credit cards
d. All of the above

7. Which is a method to fund your college education?

a. Apply for financial aid using the FAFSA and TAP applications
b. Seek out less expensive college alternatives
c. Seek out college scholarships
d. All of the above

8. An example of a need is:

a. A Florida vacation
b. A car
c. Room and board
d. A laptop

9. I bought my first car and got a loan to pay for it. If I default on my loan, only this lender will know about it and if I need another loan, I’ll be able to get it from another lender.

a. True        b. False

10. It’s ok to skip payments on your bills some months, as long as you pay the next month.

a. True        b. False

11. Under which of the following circumstances would it be financially beneficial to you to borrow money to buy something now and repay it with future income?

a. When you need to buy a car to get a much better paying job
b. When you need a vacation
c. When some clothes you like go on sale
d. When you want to invest the money and feel you could make more than the interest you are paying

12. If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you must pay according to Federal law?

a. $500
b. $1000
c. Nothing
d. $50

13. If you earned a four-year college degree, how much more money/Income could you expect to earn than if you only had a high school diploma?

a. About 10 times as much
b. No more; I would make about the same either way
c. A little more than 20% more
d. Much more than 70% more