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Financial Literacy Challenge Flashcards | StudBud
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Financial Literacy Challenge
Financial Literacy Challenge
16 terms
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Flashcards
16 cards
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Questions
16
Answers
1
"If you have money left over at the end of the month, it’s best to spend it before the next paycheck comes."
False
True
2
What is "debt"?
Money you owe to others
Money you find under your pillow
Money you win in a game
Extra money from your paycheck
3
If you earn 6% annual interest on your savings, how much would you need to save to earn $120 in interest over one year?
$2,000
$10,000
$1,200
$7,200
4
You buy a rare collectible for $200, which increases value to $300 in a year. You sell it but accidentally for $200.
$300 profit
$0
$100 loss
$100 profit
5
Paying off a loan early will always save you money on interest.
False
True
6
You buy a new video game for $60, but you accidentally drop it and break it. You then find $60 in the same spot.
$60
$120
$60 plus sadness
$0
7
What does “living paycheck to paycheck” mean?
Earning millions
Saving all your paychecks
Spending all your money before the next paycheck
Getting paid weekly
8
"If something is on sale for 50% off, you’re saving money, so it’s always a good idea to buy it."
True
False
9
If you save $200 each month for a year in a savings account, no interest, you will have $2,400 by the end of the year.
True
False
10
"The best way to get rich quick is to spend all my money on lottery tickets, because I’m definitely going to win!"
True
False
11
You see an ad that says “Buy now, pay later!” What should you be careful of?
You’ll never have to pay the full price
It might encourage you to spend more than you can afford
You can just ignore the bill later
It’s the best way to shop because you don’t pay right away
12
What is an emergency fund?
Money spent on weekends
Money used for shopping sprees
Money saved for unexpected expenses
A secret piggy bank full of coins
13
If you start saving $1 a day, you’ll be a millionaire in less than 3 years.
False
True
14
What is the main purpose of a credit card?
To automatically make you rich
To borrow money for purchases
To show off your cool card design
To earn free rewards without paying
15
What does "budgeting" mean?
Borrowing money from friends
Spending all your money on fun things
A plan for how to spend and save your money
Hiding money from yourself
16
What is a "savings account"?
A place where you spend money
A secret stash under your mattress
An account where you save money and earn interest
A bank that gives you free money
