CCR Financial Literacy

1.    Jocelyn gets a text alert from the bank that her account has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?

Contact her bank immediately as it appears that her account may have been hacked

Which of the following transactions will REDUCE your checking account balance immediately

Using your debit card to pay for groceries at the supermarket

1.    Which of these is the most convenient feature of using online and mobile banking

Using online banking, you can request transfers, bill pay, automatic savings, and other features without visiting the bank branch

You find three receipts from your activities today: (1) ATM withdrawal of $60 plus $3 out-of-network ATM fee, (2) Debit card used for grocery bill of $34 plus cash back of $20, and (3) ATM deposit of $90 from birthday checks. What is your current balance if you started the day with $300 in your account

273

Which of these statements about savings is incorrect

It is extremely difficult to open a savings account, as you typically need at least $10,000 for your initial deposit

True or False. You use can deposit cash and checks into your checking account at the same time

true

Which of the following is an effective strategy for personal saving

Save a certain percentage of each paycheck and deposit it directly in a savings account

When would be a good time to spend money from your Emergency Fund

You lose your jobs but still have bills to pay

All of the following are good strategies to develop savings habits EXCEPT

Request to be paid in cash so you can save a certain percentage of your money in a shoebox in your room every month

1.    What action is the best way to consistently save money?

Directly deposit 15% -20% of your paycheck into your savings account

You are putting together your first post-graduation budget. Your take-home or net pay will be $2,500 per month. You estimate your monthly costs to be rent of $800, car payment of $350, car insurance of $150, car maintenance of $50, entertainment of $500, food expense of $250, cable bill of $75, mobile phone of $100, student loan payment of $100 and other expense of $300. How would you describe your budget after analyzing all of your income and expenses

You have a deficit of $175

1.    When it comes to "The Truth about millionaires" which is a lie?

most inherit their money

Which of the following does a graduate student need to open a checking

Photo identification, a social security card, and money for the first deposit

What percentage of Americans live paycheck to paycheck

67

What is the difference between being rich and being wealthy

The difference is the rich have a high income with a lot of debt. The wealthy have a high net worth

Your friend Tammy just got a part-time job so she can afford to attend a school trip abroad later this school year. Tammy gets a paycheck on the 1st of every month, and a cash payment is due to the International Club advisor by the 3rd of every month with no exceptions. More than one late payment results in being removed from the trip. What recommendation do you have for Tammy?

Sign up for direct deposit with her employer so that the money is already in her account the morning of the 1st

Devon lives in a large apartment complex, and his rent is due by the first of each month to “Richardson Rental Properties and Housing Options, LLC” which has its office 45-minutes away in downtown Houston. Which payment option makes the most sense if Devon is trying to be responsible and efficient with his time

Use online auto bill pay

True or False. You can setup notifications in the mobile banking app to alert you if money is taken out of your account

true

Which of the following transactions may NOT be reflected on your account balance if you go online to check your balances

A check mailed to your cousin today

1.    Why is it so important to have a checking account?

A checking account facilitates the rest of financial life by making your money available when and where you need it while also keeping it safe. 

Which action below is considered a best-practice for check writing

Recording all of your transactions in a check register

1.    Daisy reads her bank statement and finds an error. She should...

Call the bank to investigate the transaction

Each of these is a way to get money INTO your checking account EXCEPT

Send cash in the mail to the bank

Which term from your bank statement represents the amount of money you have in your account at a given point

Balance

1.    Which statement regarding online bill pay is accurate?

Online bill pay can be used for one-time payments as well as recurring payments

1.    Direct deposit typically refers to your _____ sending your _____ electronically to your bank account.

Employer; paycheck

Each of the following is a convenience of online banking EXCEPT

Service charges

Which is the process of comparing your own records to the records provided by your bank

Reconciling your checking account

How often do customers typically receive a bank statement for their checking accounts

Monthly

What two items do you need to reconcile your checking account

Check register and monthly bank statement

How do people’s personal values and experiences affect how they make financial decisions

People's values and experiences cause them to use/save money for different things as they have different goals on how to use their money.

1.    What is the definition of wealth?

Wealth = Net Worth = Assets - Liabilities

How can someone who drives fancy cars, lives in a big house and wears expensive clothing not be wealthy

They are in so much debt they actually have a negative net worth.

1.    Which statement best describes what is meant by "living paycheck to paycheck?"

Needing your full paycheck to meet your minimum monthly living expenses, so that there's no extra money if a problem arises

1.    Which of the following individuals is the wealthiest?

Karina owns a $50,000 car and has $5000 remaining on her car loan

1.    Experts recommend that you accumulate enough to cover 3 to 6 _____ of expenses in your emergency fund.

Months

1.    Which of the following is a sign that you have a budget deficit?

You overdraw your checking account on a consistent basis (with a $34 cost per overdraft

Which of the following statements is TRUE

Millionaires achieve their wealth by budgeting their money and staying out of debt

Which description is most accurate for a Zero-Based Budget

You put every dollar of your net pay into a budget category each month

What is a good “rule of thumb” for how much you should save

20% of income

Which represents the BEST time to start saving for your retirement

As soon as you have a full-time job

1.    You overhear your cousin talking about the importance of creating and sticking to a budget. All of the following are good reasons to create and stick to a budget EXCEPT...

Having a budget is a requirement for renting or buying a home

1.    What action corresponds to the advice "Pay yourself first?"

Set aside a fraction of your paycheck into a savings account before you start spending.

Which of these is the MOST compelling reason for young adults to invest

Young people have time on their side, so investments made in their 20s have decades to compound and grow in value.