What is the recommended amount to have in an emergency fund?

To cover unexpected expenses without going into debt

Why is it important to have an emergency fund?

Pay yourself first by saving a portion of your income before spending

Save only if there’s extra at the end of the month

Use your savings to pay off credit card debt immediately

What’s the best practice when it comes to saving money?

Putting all your money into one high-risk stock

Diversifying your investments across different asset types

Timing the market to buy low and sell high

Waiting until you have a large sum to invest

Which is considered a best practice for investing?

Pay off the full balance every month to avoid interest

Open multiple credit cards to increase your credit limit

What is the most effective way to manage credit card debt?

Ignore the loan until you have more money

Make minimum payments to keep it in good standing

Pay off the high-interest loan as quickly as possible

 Take out another loan to cover the payments

What is the best way to handle a high-interest loan?

Keeping track of every expense to ensure it aligns with your budget

Spending without keeping receipts to reduce stress

Estimating your expenses without writing them down

Adjusting your budget only at the end of the year

What is a good financial habit when managing a budget?

Monthly or whenever there’s a significant change in your finances

Never, once it's set it should stay the same

How often should you review and adjust your budget?

Start saving for retirement as early as possible

Wait until you're close to retirement age to start saving

Rely on Social Security for your retirement income

Only save if your employer offers a retirement plan

What is the best financial practice for retirement planning?

Contribute up to the employer match at a minimum

Withdraw from the account whenever you need money

Wait until you have a large salary to start contributing

What’s the best way to maximize your employer’s 401(k) benefits?

Spend more than you earn by using credit cards

Spend less than or equal to what you earn

Spend only on necessities and never on wants

What does it mean to live within your means?

You are consistently adding to your savings

You regularly rely on credit cards to pay for basic expenses

You pay off your credit cards in full each month

Which of the following is a sign that you’re living beyond your means?

Keep all receipts and records of deductible expenses throughout the year

Wait until tax season to gather all your documents

Pay taxes only on the income that isn’t taxed by your employer

 Ignore deductions and rely on standard tax rates

What is a good tax practice to maximize deductions?

You reduce the risk of tax-related identity theft

What is the benefit of filing your taxes early?

Set vague goals, like “save more money”

Set specific, measurable goals, like “save $500 in 3 months”

Set long-term goals without considering short-term needs

Focus only on paying off debt and ignore savings

 What is a smart way to set financial goals?

It helps you stay motivated and adjust if necessary

You can spend more money once you track your progress

Tracking is unnecessary once you’ve set a goal

Why is it important to track progress toward financial goals?

Which of the following is considered a “need” in a budget?

The amount of money you have in your savings account

A number representing your borrowing risk to lenders

The total of all your credit card balances

What is a credit score?

Which type of loan typically has the lowest interest rate?

Interest earned only on the initial investment

Interest calculated on both the principal and previously earned interest

What is compound interest?

More time for compound interest to grow your money

What is the main advantage of investing early?

To fund public services like schools, roads, and emergency services

What is the purpose of taxes?

 What is the recommended maximum percentage of your income that should go toward paying off debt?

Which debt repayment strategy focuses on paying off the smallest debts first?

Which type of bank account typically offers the highest interest rate for saving money?

Savings accounts are for long-term saving, checking accounts are for everyd

Checking accounts have higher interest rates than savings accounts

Savings accounts can only be used to pay bills

Checking accounts can’t have ATM access

What’s the main difference between a savings account and a checking account?

The smallest amount you can pay to avoid late fees

The amount required to pay off the balance in full

What is the minimum payment on a credit card?

 What is APR in the context of credit cards?

To protect against large financial losses due to accidents or illness

To provide extra income during retirement

What is the purpose of insurance?

Which type of insurance is most likely to cover damage to your car in an accident you caused?

Which of these is a tax-advantaged retirement savings account?

At what age can you typically begin withdrawing from a retirement account like a 401(k) without penalty?

A general increase in prices and fall in the purchasing value of money

The amount of money printed by the government

What is inflation?

 If the interest rate on a savings account is 2%, and inflation is 3%, what happens to your money?

Subsidized loans don’t have to be paid back; unsubsidized loans do

Subsidized loans are based on financial need; unsubsidized loans are not

Unsubsidized loans have lower interest rates than subsidized loans

Subsidized loans must be repaid immediately after borrowing

What is the difference between a subsidized and unsubsidized student loan?

6 months after you graduate or drop below half-time enrollment

Immediately after finishing your freshman year

When do you typically have to start repaying federal student loans?

What is the first step in creating a personal budget?

Only paying the minimum balance on credit cards

Borrowing as much as possible from friends or family