A plan for how to spend and save money

What is the difference between gross pay and net pay?

Gross pay is before taxes; net pay is what you take home.

How can First Financial help you with money management?

They offer free financial counseling at all branches

What is a good way to save money on everyday expenses?

Track your spending and cut unnecessary costs

What is an overdraft fee?

A charge for spending more than what’s in your bank account

What should you do if you don’t understand something about your finances?

Ask for help from a trusted source, like a financial counselor

Why is paying only the minimum payment on a credit card a bad idea?

You’ll never actually pay off the debt

What is a predatory loan

A loan with high interest and unfair terms

What should you always do with your paycheck?

Budget it wisely for needs, wants, and savings

How do payday loans trap people in debt?

They charge extremely high interest rates

What is the best way to track your spending?

Use a budgeting app or write it down.

What happens if you don’t pay your credit card bill?

Your credit score drops, and you owe interest

What should you do if someone asks for your bank information?

Never share it—it's likely a scam!

What happens if you spend more money than you have in your checking account?

You get an overdraft fee, which can be expensive

What is a smart way to use a credit card?

Only use it for emergencies or things you can afford to pay off

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Financial Literacy Quiz: Adulting 101

20 termsStudBud Administration268 plays

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Questions 20

Answers

1
What is a budget?
A government conspiracy to keep people from shopping
A magical wish list of things you want
A plan for how to spend and save money
A list of things you can’t buy
2
What is the difference between gross pay and net pay?
Gross pay is what you take home; net pay is before taxes.
Grosspay is what your parents give you;netpay is what’s left after you buy
Gross pay is money you earn at a gross job; net pay is from a clean job.
Gross pay is before taxes; net pay is what you take home.
3
How can First Financial help you with money management?
They give out free money
They offer free financial counseling at all branches
They let you spend money for them
They charge you to learn about money
4
What is a good way to save money on everyday expenses?
Subscribe to every streaming service available
Track your spending and cut unnecessary costs
Only shop when you’re bored
Buy everything on sale, even if you don’t need it
5
What is an overdraft fee?
A free loan from the bank
A tip you give yourself
A reward for spending extra money
A charge for spending more than what’s in your bank account
6
What should you do if you don’t understand something about your finances?
Ignore it and hope for the best
Google it and believe the first thing you read
Ask your pet—they always know best
Ask for help from a trusted source, like a financial counselor
7
Which of these is NOT a safe place to keep your money?
A locked safe
A prepaid debit card
A piggy bank under your bed
A credit union or bank savings account
8
Why should you avoid maxing out your credit card?
It means you’re a successful adult
It can hurt your credit score
The bank will give you free money
You’ll be invited to an exclusive shopping club
9
What percentage of your income should ideally go toward savings?
0% because YOLO
At least 20%.
50% so you never have fun.
However much is left after buying the new iPhone.
10
Which of these is a good way to build credit?
Buying expensive things to flex
Paying your bills on time
Using your best friend’s credit card instead of your own
Opening 10 credit cards at once
11
Why is paying only the minimum payment on a credit card a bad idea?
You’ll never actually pay off the debt
You can use it as an excuse to keep shopping
The bank will get mad at you
You get free money that way
12
What is a predatory loan
A loan you take to buy a pet tiger
A loan that disappears after a year
A loan with high interest and unfair terms
A loan you get from a mysterious guy named Vinny
13
What should you always do with your paycheck?
Spend it all before your next payday
Hide it under your mattress for safekeeping
Use it to buy every limited-edition sneaker drop
Budget it wisely for needs, wants, and savings
14
How do payday loans trap people in debt?
They give you unlimited money
You only have to pay them back if you feel like it
They charge extremely high interest rates
They send you a free gift every time you borrow money
15
What is the best way to track your spending?
Check your bank account once a year
Ask your parents to do it for you
Only track big purchases, like PS5s
Use a budgeting app or write it down.
16
What happens if you don’t pay your credit card bill?
Your credit score drops, and you owe interest
Nothing, it just resets every month
The bank throws you a "Thank You" party.
You get a free "Get Out of Debt" card
17
What should you do if someone asks for your bank information?
Post it on Instagram so you don’t forget it.
Give it to them if they say it's an emergency.
Only share it with people who promise you $1 million.
Never share it—it's likely a scam!
18
What is a safe way to pay for emergencies?
Emergency savings
Borrowing money from a payday loan
Asking strangers on TikTok to Venmo you
Putting everything on a credit card and hoping for the best
19
What happens if you spend more money than you have in your checking account?
Nothing, the bank doesn’t care
You get a warning but never have to pay it back
You get an overdraft fee, which can be expensive
Your bank pays for it because they’re nice like that
20
What is a smart way to use a credit card?
Max it out and open a new one
Let your dog pick what you buy
Only use it for emergencies or things you can afford to pay off
Buy everything you want and worry later

Financial Literacy Quiz: Adulting 101 Flashcards | StudBud