What should you do if you notice an error on your credit report?

Dispute it with the credit bureau

What should you do after attending a financial literacy event?

Apply what you learned and start making changes

What is financial literacy?

Understanding how to manage money responsibly

Which of the following is NOT a reliable saving strategy for students?

Relying on loans for daily expenses

What is a common mistake students make with financial aid refunds?

Spending it on non-essential items

What does an emergency fund cover?

Unexpected costs like medical bills or car repairs

Why is it important to set financial goals?

To have a clear plan for saving and spending

What is a good way to start building credit as a student?

Making small purchases and paying them off

Which of the following is NOT a reliable side hustle for college students?

Investing in high-risk/ high reward stocks

What is the main difference between subsidized and unsubsidized federal loans?

Subsidized loans do not accumulate interest while in school

What is a common credit card trap students fall into?

Overspending and paying only the minimum balance

What is a grace period for student loans

The period before repayment starts after graduation

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NSP Financial Literacy Program

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Questions 25

Answers

1
What should you do if you notice an error on your credit report?
Dispute it with the credit bureau
Call your bank for advice
Open a new credit card to fix it
Ignore it
2
What is the first step in creating a budget?
Only saving when you have extra money
Spending first, saving later
Guessing your expenses
Tracking income and expenses
3
Why is it important to track your earnings and expenses?
All of the above
To ensure you are financially stable
To avoid running out of money
To plan for future financial goals
4
What is the benefit of having a "college-friendly" budget?
All of the above
Developing good money habits early
Learning to live below your means
Avoiding unnecessary debt
5
What should you do after attending a financial literacy event?
Forget about it and continue old habits
Wait until you have a full-time job to worry about money
Ask your parents to handle your finances
Apply what you learned and start making changes
6
What is financial literacy?
Understanding how to manage money responsibly
Knowing how to make money
Learning about stocks and investing
Having a lot of money
7
Which of the following is NOT a reliable saving strategy for students?
Setting up an emergency fund
Using a budgeting app
Relying on loans for daily expenses
Cutting out unnecessary expenses
8
Which financial habit is important for transitioning to post-college life?
Living paycheck to paycheck
Ignoring student loan payments
Having an emergency fund
Only using cash
9
What happens if you miss a student loan payment?
You automatically qualify for loan forgiveness
Your loan balance disappears
Nothing
Your credit score can drop
10
What is a good rule to follow for saving money?
Spend first, then save
Borrow money to save
Save first, spend later
Save whatever is left at the end of the month
11
What is a common mistake students make with financial aid refunds?
Using it to pay down future loan interest
Spending it on non-essential items
Investing it in a savings account
Using it only for tuition
12
What is an example of passive income?
Working a part-time job
Freelance writing
Investing in dividend stocks
Babysitting
13
Why is it important to pay your credit card bill on time?
Prevents damage to your credit score
Avoids late fees and interest charges
Helps build a good credit history and
All of the above
14
What does an emergency fund cover?
Student loan payments
Unexpected costs like medical bills or car repairs
Luxury purchases
Everyday expenses
15
Why is it important to set financial goals?
To ensure you never run out of money
To get rich quickly
To have a clear plan for saving and spending
To track you credit score
16
What is a good way to start building credit as a student?
Making small purchases and paying them off
Ignoring credit until after graduation
Opening multiple credits cards
Using only cash
17
What percentage of your income is typically recommended for savings?
5%
20%
10%
50%
18
What is the most important factor in you credit score?
Credit age
Payment history
Credit inquiries
Number of credit cards
19
Which of the following is NOT a reliable side hustle for college students?
Freelancing
Investing in high-risk/ high reward stocks
Online surveys
Tutoring
20
What is a major benefit of having multiple streams of income?
Allows you to build savings faster
All of the above
Reduces financial stress
Prepares you for financial independence
21
Which type of loan typically has lower interest rates?
Federal loans
Payday loans
Private loans
Credit card loans
22
What is the main difference between subsidized and unsubsidized federal loans?
There is no difference
Unsubsidized loans do not accumulate interest until after graduation
They both have the same interest rates
Subsidized loans do not accumulate interest while in school
23
What is a common credit card trap students fall into?
Overspending and paying only the minimum balance
Using credit carrds for emergencies only
Paying off the balance in full
Checking their credit report too often
24
How can you avoid excessive student loan debt?
Apply for scholarships and grants
All of the above
Work part-time while in school
Only borrow what you need
25
What is a grace period for student loans
The period before repayment starts after graduation
A special loan forgiveness option
The time when interest doesn't accumulate
A time when you can skip payments

NSP Financial Literacy Program Flashcards | StudBud