Name__________________________________________

1. Which of the following phrases means “the ability to understand how to manage your money”? Minimum payment Financial literacy Financial aid

2. Identify the following as needs or wants. Fill in one circle for each item.

Need WantFood Credit card MP3 player Pizza delivery A place to live Cell phone

3. If your full-time job has a salary of $1,600 every two weeks, how much you will you receive in your paycheck every two weeks? Less than $1,600 $1,600 More than $1,600

4. Give one example of a tip on how you could help your family save money. For example, turn off the lights when you leave a room.

_______________________________________________________

5. A budget is just another name for a plan for how you will spend your money. True False

6. Banks use computers, so it is not necessary for people who have checking accounts to periodically make sure that the balance they think is in the checking account matches what the bank says is in the checking account. True False

7. Imagine you purchased a CD at Best Buy on October 10, 2011, for $12.60. Look at the check below and answer the following questions. Place the correct number in each blank. The first question is completed for you as an example.

Which number identifies the check number? ___1___

Which number identifies the bank’s routing number? ______

Which number identifies the owner’s account number? ______

Where would you place your signature? ______

Where would you write the words “Best Buy”? ______

Where would you write the number “$12.60”? ______

8. Goals can be short-term or long-term, but all goals should follow the SMART mnemonic. SMART is an abbreviation for:

S = __________________________________

M=___________________________________

A=___________________________________

R=___________________________________

T=____________________________________

9. A budget should include a line for putting money aside in case of an emergency. True False

10. Income paid to an individual by the federal government after the worker retires is called: 401(k) IRA Social Security Medicare

11. A retirement savings plan that many employers will match contributions made by employees is called: 401(k) IRA Social Security Medicare

12. Middle school students are too young to open a savings account at a bank or credit union. True False

13. For which of the following can banks or credit unions charge fees? Select all that apply. ATM transactions Closing an account Making a deposit Having a checking account Providing you with checks to use

14. Steve and Megan both need a loan for $20,000 to buy a car. Steve’s credit score is 670 and Megan’s credit score is 750. Which of the following is most likely to be true? Steve will pay more interest than Megan as he pays back the loan. Megan will pay more interest than Steve as she pays back the loan. Steve and Megan will pay the same amount in interest since they are borrowing the same amount of money.

15. If you have a savings account in a bank that goes out of business, you lose all of your money. True False

16. Match the following words related to money management to their correct definitions. Put the letter of the correct definition next to the word.

_____ Withdrawal A. Allows the cost of purchases to be taken directly from a person’s bank account.

_____ Deposit B. Regularly occurring charges that some banks require to be paid for certain types of accounts.

_____ Interest C. Money a borrower pays to a lender for the privilege of using the money now but paying it back at some future date.

_____ Loan D. Money given to you from a lender that must be paid back at some future date.

_____ Credit card E. The act of putting money into an account at a bank or credit union.

_____ Fees F. The act of taking money out of an account at a bank or credit union.

_____ Debit card G. Allows a person to charge something and make payments for it later.

17. To use a debit card, you must always use the Personal Identification Number (PIN) associated with it. True False

18. Paying more than the minimum payment each month on a credit card balance is the best way to pay off that debt. True False

19. Which of the following are reasons that people can get into financial trouble trying to pay back their credit card debt? Select all that apply. Missing payments Paying the balance in full every month Paying less than the minimum payment required Owing money on several credit cards Paying off one credit card with another credit card

20. Regardless of family income, everyone can get at least one type of financial aid to attend college. True False

21. Match the following words related to paying for college to their correct definitions. Put the letter of the correct definition next to the word.

_____ Net price of college A. The total cost charged to those students choosing to live and eat in housing provided by the college.

_____ Sticker price of college B. The total cost of college for a year that you will find on a college’s website or in their brochures.

_____ Tuition C. The total cost of college for a year that will appear on your bill after all financial aid has been subtracted from the costs.

_____ Room and board charges D. Charges paid directly to the college to cover the cost of attending classes.

22. Which one of the following degrees are most commonly earned at a community college? Select one answer. Associate degree Bachelor’s degree Master’s degree Doctorate degree

23. The level of education you achieve has no effect on the salary you will earn at a job. True False

24. Which of the following is not included in the cost of attendance calculation for a college? Select one answer. Tuition Fees Room and board Car payments Transportation costs to go home for holidays

25. All credits earned at a community college automatically transfer to a four-year school. True False