Financial Literacy For Teens
A test on the book Financial Literacy for Teens.
- 1.When paying taxes in the U.S., the more money you make, ____________________.
- A.
The less taxes you pay
- B.
The more taxes you pay
- C.
Doesn't make a difference because everyone pays the same amount in taxes
- D.
The more you hate paying taxes
- 2.A health insurance program for the elderly and disabled that is funded by some of your taxes and run by the federal government is known as?
- A.
FICA.
- B.
State tax.
- C.
Unemployment tax.
- D.
Medicare.
- 3.One common thing of most financially successful people is that they?
- A.
Quit school before they were 18.
- B.
Always keep $500 in their pocket.
- C.
Started a business early in life.
- D.
Worked part-time when they were teenagers.
- 4.People who do not understand the difference between ______________ usually struggle with financial problems.
- A.
Taxes and insurance
- B.
Needs and wants
- C.
Buying and renting
- D.
Food and shelter
- 5.One major problem with using credit cards is that people...
- A.
Lose them a lot.
- B.
Buy things they can't afford.
- C.
Have to pay to use them.
- D.
Forget to use them.
- 6.If you use a credit card, you should...
- A.
Pay the full balance of the credit card every month
- B.
Pay the minimum payment each month
- C.
Never pay the bill
- D.
Be able to buy anything you want
- 7.A ___________ is a plan for how you will spend your money.
- A.
Paycheck
- B.
Cash journal
- C.
Credit card
- D.
Budget
- 8.Health insurance is...
- A.
Only for those who get sick.
- B.
An unnecessary expense because you may not need it.
- C.
A must buy item for your budget.
- D.
More important for women than for men.
- 9.Renter's insurance is very important to have because they will replace all of your belongings in case of a...
- A.
Fire, robbery, or if your little brother damanges something
- B.
Flood, robbery, or a car accident
- C.
Robbery, fire, or if you brake something
- D.
Fire, flood, or robbery
- 10.Which item below would certainly depreciate if you owned it?
- A.
A house
- B.
A car
- C.
Gold
- D.
All of the above
- 11.Chain mails involving money are?
- A.
Usually legal and ethical.
- B.
Legal if you are 21.
- C.
Completely illegal.
- D.
Partly legal and ethical.
- 12.What are the two main reasons to save money?
- A.
For emergencies and to buy everything you want
- B.
For emergencies and major purchases
- C.
To pay off your credit cards and for major purchases
- D.
So you can invest it and donate it
- 13.How can you make money while you sleep?
- A.
Put your money under your pillow for the tooth fairy
- B.
Dream about money
- C.
Invest your money
- D.
Donate your money
- 14.You won't be able to move out if you have...
- A.
Student loans
- B.
No roommates
- C.
Protective parents
- D.
Bad credit
- E.
No credit
- 15.What are the four main things you have to pay for every month when having a car?
- A.
Car payment, gas, maintenance/repairs, and tires
- B.
Car payment, insurance, gas, and maintenance/repairs
- C.
Gas, insurance, credit cards, and oil changes
- D.
Insurance, maintenance/repairs, car payment, and car washes
- 16.You should choose a career based on...
- A.
How much money you want to make.
- B.
What you like to do and have a passion for.
- C.
What will make your parents happy.
- D.
What your friends tell you to do.
- 17.You will likely earn over how much money before you retire?
- A.
One hundred thousand dollars
- B.
One million dollars
- C.
Five billion dollars
- D.
Fifty thousand dollars
- 18.Which of the following is a true statement about credit cards?
- A.
You should never get a credit card.
- B.
If you get a credit card, you will go into debt.
- C.
You should get a credit card and use it responsibly in order to build good credit.
- D.
The credit card companies don't charge you anything to borrow money from them.
- 19.Which of the following is NOT an example of an investment?
- A.
Stocks
- B.
Mutual Fund
- C.
Real Estate
- D.
Automobiles
- 20.What is the most important reason to invest?
- A.
To get rich quick.
- B.
So you can buy a new car.
- C.
So you will have money to live off of when you retire.
- D.
To help other businesses.
- 21.Why should you donate your money?
- A.
Because there is always someone less fortunate than you that needs it.
- B.
Because you don't need all of your money.
- C.
To get a tax break.
- D.
So your parents will be proud of you.
- 22.If you don't have health insurance and you must have an emergency surgery...
- A.
They will tell you to leave the hospital.
- B.
You will have to pay for all the medical bills yourself.
- C.
The government will pay for all of your medical bills.
- D.
The hospital will do the surgery for free.
- 23.Its extremely important to do what before buying a car?
- A.
Pay off all your credit cards
- B.
Do car buying research/homework
- C.
Get a driver's license
- D.
Ask your parents for permission
- 24.When you rent an apartment or house you have to sign a lease. Which of the following is NOT true with a lease?
- A.
It is a legal document.
- B.
You are agreeing to pay rent every month on time for the length of the lease.
- C.
If you have a roommate move in later, they don't need to sign the lease.
- D.
You are agreeing to take care of the place you are renting.
- 25.Which of the following is NOT an example of a scam?
- A.
Identity theft
- B.
Phishing e-mails
- C.
Chain-mail involving money
- D.
People selling their things on Ebay
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