Financial Literacy Pre-Test

Renters insurance is not necessary, since the landlord's insurance will cover you.

A high credit score can help you get lower interest rates on loans and credit cards.

APR stands for Average Payment Ratio

All debt is bad and should be avoided at all costs.

Financial experts recommend you keep an "emergency fund" of money (3-6 months worth) in a savings account.

Landlords are legally allowed check your credit report before they will rent to you.

A lower interest rate on a loan generally means you'll pay less over time.

Disability insurance replaces your full income if you become unable to work.

There are government-regulated internet sites where you can get your credit report for free.

A budget is a plan that outlines how income will be spent and saved.

Closing old credit card accounts will always improve your credit score.

If your bank emails you and asks you for your social security number and date of birth, it is safe to send it to them.

A 401K plan is a form of savings.

Using a debit card helps you build your credit score.

Using a credit card does not cost you any extra money if you make the minimum payment every month.

Net income is the amount of money you get after taxes and other deductions are taken out of our paycheck.

Your net worth is calculated by subtracting your debts from your assets.