Leeson 2.0 Financial Literacy

 Online banks often offer lower fees than traditional banks.

 Tom has never borrowed money before. What will his credit score likely be?

Jake sees a new gaming console on sale but didn't plan to buy it. What should he do?

 Credit cards can help you build credit if used responsibly.

Sarah takes out multiple credit cards and maxes them out. What is a likely consequence?

Your credit history includes past loans and payment history.

A smartphone is always considered a "need."

Scholarships must be repaid like loans.

Fixed expenses, like rent, stay the same each month, while variable expenses, like entertainment, can change.

 One benefit of credit is being able to make large purchases and pay over time.

Buying something on sale always means you’re saving money.

 Federal student loans usually have lower interest rates than private loans.

 James pays off his credit card bill in full every month. Is this a good practice?

A debit card can help you build credit.

 Maria is deciding between paying rent and buying concert tickets. Which one is the "need"?

You should always spend more than you earn to build credit.

 Lisa is saving for a long-term goal and wants to earn interest. What type of account should she use?

Using credit means you don’t have to pay for your purchases.

Kevin needs money for college and wants to avoid debt. What is his best option?

A higher credit score usually means you qualify for better loan rates.

 Food is always considered a "need," no matter what type of food it is (a.k.a luxury foods).

Waiting 24 hours before making a big purchase can help reduce impulse buying.

The FAFSA determines eligibility for financial aid for college.

Interest on a loan is the extra money you pay for borrowing.

A credit score is a number that represents how responsible you are with credit.

John gets a paycheck and wants to save money. What should he do first?

Making a shopping list can help you avoid impulse purchases.

 A "need" is something essential for survival, while a "want" is something that enhances your lifestyle.

 A checking account is primarily used for everyday transactions.

Jason wants to buy a designer watch, but he also needs to save money for groceries. What should he prioritize?

A savings account typically earns more interest than a checking account.

 Lily gets a loan with a 10% interest rate. What will she have to do?

 Jake wants quick access to his money for daily expenses. What type of account should he use?

 If Alex earns $2,000 per month and has $1,800 in expenses, how much does he have left for savings or entertainment?

Paying your credit card bill late can improve your credit score.

Maria uses cash instead of credit for her daily expenses. How can this help her?

Emily has a credit card with a $1,000 limit and spends $950 each month. How will this affect her credit score?

Sarah spends $300 on eating out but only saves $50 a month. What should she adjust?

A budget helps track income and expenses to manage money effectively.

Sophie buys expensive coffee every day and wonders why she can’t save money. What’s a possible solution?