What are some reasons people struggle with money?

Their income is too low, Overspending

What happens if you don't pay your credit card bill on time?

You get charged interest and late fees

What is a benefit of using a credit card responsibly? Choose the best option.

You can build good credit score

What is a credit card?

A card that lets you borrow money and pay it back later

Which of the following is the BEST way to reduce unnecessary spending?

Cancelling unused subscriptions

What is a credit limit?

The maximum amount you can borrow on your credit card

What can improve your credit score?

Paying your credit card bill on time

What is a minimum payment?

Minimum amount you must pay each month to avoid late credit card fees

A plan for managing income and expenses

What is a debit card?

A card that lets you use the money you have in your bank account.

What could an emergency fund be used for?

Paying for an unexpected car repair

Why is saving money important?

Helps you prepare for unexpected events

Which of these is the best way to increase savings?

Increase income and reduce expenses

What is financial literacy?

Knowing how to budget and manage money

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FINANCIAL LITERACY

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Questions 27

Answers

1
A debit card allows you to borrow money from the bank.
True
False
2
Which of the following is a financial goal?
Saving for a house
Eating at a nice restaurant once a week
Buying the newest iPhone
Buying more clothes
3
Overspending means you...
spend your savings
spend more than you make
buy whatever you want
spend over your credit limit
4
What are some reasons people struggle with money?
They donate too much money
Their income is too high
Their income is too low
Overspending
5
What happens if you don't pay your credit card bill on time?
Your credit score increases
You get charged interest and late fees
Nothing, the bank will forgive it
You don't earn cashback rewards
6
What is a benefit of using a credit card responsibly? Choose the best option.
You don't have to pay for all your purchases - the bank does it for you
You can earn points and travel rewards
You can get unlimited money even if you don't have a job
You can build good credit score
7
How much of your income should go towards savings?
10%
50%
30%
20%
8
What is a credit card?
A card that lets you pay for purchases using money you've made
A card that gives you free money
A card used only for online purchases
A card that lets you borrow money and pay it back later
9
What is another word for income?
Credit
Debt
Expenses
Salary
10
Which of the following is the BEST way to reduce unnecessary spending?
Cancelling unused subscriptions
Using a credit card for all your purchases
Deleting half the items in your amazon cart
Stop paying for the TTC
11
What is a credit limit?
The maximum amount you can borrow on your credit card
The amount you must pay each month
$1000
The minimum amount you must spend using your credit card.
12
What can improve your credit score?
Maxing out your credit card every month
Paying your credit card bill on time
Applying for multiple credit cards at once
Ignoring your credit card bill
13
What percentage of income should go to needs in the 50-30-20 rule?
Needs don't matter
30%
20%
50%
14
What percentage of income should go to wants in the 50-30-20 rule?
20%
30%
Depends on your income
50%
15
If your credit score increases, that is a good thing.
True
False
16
What is a minimum payment?
Minimum amount you must pay each month to avoid late credit card fees
Minimum amount you must pay each month to avoid late debit card fees
The interest charge for using a credit card
The minimum amount of money you need to pay for taxes
17
Which of the following is considered a 'want'?
Electricity Bill
Car loan payment
Gym membership
Groceries
18
What is a budget?
A loan from the bank
A plan to pay off debt
Guidelines for saving money
A plan for managing income and expenses
19
What does 'maxxing out' your credit card mean?
Paying off your entire balance
Paying your minimum payment
Not paying off your debt.
Spending your entire limit
20
What is a debit card?
Cards that allow you to make in-person purchases, but not online purchases
A card that lets you use the money you have in your bank account.
A type of gift card.
A card that lets you borrow money from the bank and pay it back later.
21
If you earn $3,000 per month, how much should you save according to the 50-30-20 rule?
$1,500
$600
$200
$400
22
Which category should be the highest priority in a budget?
Savings
They're all equally important
Needs
Wants
23
What could an emergency fund be used for?
Paying for a vacation to de-stress
Investing in stocks
Paying for new jeans after your old ones ripped
Paying for an unexpected car repair
24
Why is saving money important?
Helps you prepare for unexpected events
D) To avoid using a bank
C) To avoid paying bills
To spend more on wants
25
Which of these is the best way to increase savings?
C) Only save when convenient
Increase income and reduce expenses
B) Spend all extra money
Ignore your bank statements
26
What is financial literacy?
Only using cash for purchases
Avoiding all types of debt
Being able to do advanced math
Knowing how to budget and manage money
27
There are 3 types of financial goals
True
False

FINANCIAL LITERACY Flashcards | StudBud