Check your Financial Literacy IQ!
Q 1: Which factor can negatively affect your credit score?
A: Closing a credit card with zero balance can negatively impact your credit score. While being a day late with your credit card payment is not advised, there is a slightly longer grace period before it impacts your credit score.
Q2: Who may request access to your credit score?
A: E. All of the above: your employer, your student loan provider, your landlord, and your auto insurance company call all access your credit score to rate your ability to pay your bills on time.
Q3: Where can you obtain a FREE copy of your credit report?
A: C. You can request a FREE credit report annually from annualcreditreport.com, the central website set up by the three nationwide credit reporting companies.These are the most accurate reports and will provide the detailed information that a lender would request (for mortgages and other large loans).
Q4: Other than the price of a car, what other factors are used in calculating a car loan payment?
A: B. When calculating your auto loan payment, the following factors are used: interest rate, credit score, and length of the loan.
Q5: When do you start owing federal and state income taxes?
A: C. Owing state and federal taxes is dependent on your income level, not your age or just because you earn a paycheck.
Q6: What taxes can be taken out of your paycheck?
A: D. All of the above. The following taxes may be taken out of your paycheck: FICA-Social Security, FICA-Medicare, Federal and state income taxes.
Q7: When you direct 10% of each paycheck into a savings account, what is this strategy called?
A: E. Automatically directing a portion or percentage of each paycheck into a savings account is a savings strategy known as "pay yourself first."
Q8: What is the most likely reason for a budget to fail?
A: D. Although impulse purchases can make sticking to a budget difficult, it is not having an emergency fund that can do the most damage to your monthly budget if you incur a significant, unforeseen expense.
Q9: When can contributions to a Roth IRA be withdrawn tax-free and without penalty?
A: E. One of the best things about a Roth IRA--and why everyone should have one if you're eligible--is that you can withdraw your contributions anytime, without taxes or penalty. It is only the earnings (or growth) that is subject to the 5-year and age 59.5 rule. So it can do double duty as your emergency fund!
Q10: What is a 401(K) plan?
A: A. A 401K plan is a retirement savings plan offered through employers.
A: Closing a credit card with zero balance can negatively impact your credit score. While being a day late with your credit card payment is not advised, there is a slightly longer grace period before it impacts your credit score.
Q2: Who may request access to your credit score?
A: E. All of the above: your employer, your student loan provider, your landlord, and your auto insurance company call all access your credit score to rate your ability to pay your bills on time.
Q3: Where can you obtain a FREE copy of your credit report?
A: C. You can request a FREE credit report annually from annualcreditreport.com, the central website set up by the three nationwide credit reporting companies.These are the most accurate reports and will provide the detailed information that a lender would request (for mortgages and other large loans).
Q4: Other than the price of a car, what other factors are used in calculating a car loan payment?
A: B. When calculating your auto loan payment, the following factors are used: interest rate, credit score, and length of the loan.
Q5: When do you start owing federal and state income taxes?
A: C. Owing state and federal taxes is dependent on your income level, not your age or just because you earn a paycheck.
Q6: What taxes can be taken out of your paycheck?
A: D. All of the above. The following taxes may be taken out of your paycheck: FICA-Social Security, FICA-Medicare, Federal and state income taxes.
Q7: When you direct 10% of each paycheck into a savings account, what is this strategy called?
A: E. Automatically directing a portion or percentage of each paycheck into a savings account is a savings strategy known as "pay yourself first."
Q8: What is the most likely reason for a budget to fail?
A: D. Although impulse purchases can make sticking to a budget difficult, it is not having an emergency fund that can do the most damage to your monthly budget if you incur a significant, unforeseen expense.
Q9: When can contributions to a Roth IRA be withdrawn tax-free and without penalty?
A: E. One of the best things about a Roth IRA--and why everyone should have one if you're eligible--is that you can withdraw your contributions anytime, without taxes or penalty. It is only the earnings (or growth) that is subject to the 5-year and age 59.5 rule. So it can do double duty as your emergency fund!
Q10: What is a 401(K) plan?
A: A. A 401K plan is a retirement savings plan offered through employers.
