What is the best way to avoid credit card debt?

Only spend what you can pay off in full each month

What does setting a SMART financial goal mean?

A goal that is Specific, Measurable, Achievable, Relevant, and Time bound

What is the 50/30/20 Rule

Spend 50% on needs, 30% on wants, 20% on savings

Which of these is an example of "Good Debt

Taking a student loan for college

What is compound interest?

Money you earn on both your savings and previous interest

Why is it smart to start investing early?

Your money has more time to grow

Which of these is NOT a good saving habit?

Spending first, then saving whatever is left

What’s a good way to avoid impulse buying?

Wait 24 hours before making big purchases

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Financial Literacy Workshop

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Questions 10

Answers

1
What is the best way to avoid credit card debt?
Never use a credit card at all
Pay only the minimum amount each month
Use the card for everything and hope for the best
Only spend what you can pay off in full each month
2
What does setting a SMART financial goal mean?
A goal that is only about saving money
A goal that is impossible to reach
A goal that is vague and open-ended
A goal that is Specific, Measurable, Achievable, Relevant, and Time bound
3
Which of these is a smart way to earn money as a student?
Wait until you graduate to think about money
Start a side hustle
Take out loans
Spend more than you earn
4
What is the 50/30/20 Rule
Spend 50% on fun, 30% on bills, 20% on savings
Save 50%, invest 30%, spend 20%
Spend 50% on shopping, 30% on food, 20% on savings
Spend 50% on needs, 30% on wants, 20% on savings
5
Which of these is an example of "Good Debt
Buying an expensive designer bag
Taking a student loan for college
Using a credit card for daily expenses
Borrowing money for a vacation
6
What is compound interest?
Money you earn on both your savings and previous interest
A type of tax on bank accounts
A fee you pay when borrowing money
A discount you get when you pay in cash
7
Why is it smart to start investing early?
You can withdraw money anytime without losing value
Your money has more time to grow
You can get rich instantly
Investing is only for adults
8
Which of these is NOT a good saving habit?
Spending first, then saving whatever is left
Using a high-yield savings account
Automating savings each month
Keeping an emergency fund
9
What’s a good way to avoid impulse buying?
Buy items immediately when you want them
Always use a credit card
Never buy anything fun
Wait 24 hours before making big purchases
10
If you save $5 a week, how much will you have in a year?
$50
$500
$500
$260

Financial Literacy Workshop Flashcards | StudBud