Financial Literacy Final Exam

1. When you’re older and out of school, you’ll need to grow your emergency fund into a full three to six months’ worth of expenses.

2. You must shop for the best price for your education in the same way you comparison shop for any large purchase.

3. You’ll only need to complete the FAFSA once during your college education.

4. Teens and young adults are a huge target of credit card companies.

5. Most Americans avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home.

6. Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone.

7. Once you write your budget, it’s impossible to change it.

8. If you plan to attend a community college for your first two years, you’ll want to work closely with your advisor to make sure that the classes you take will transfer to your four-year school of choice.

9. When you invest, your goal is to earn a negative rate of return on investment.

10. Detailed categories on your budget will help you make better spending decisions.

11. Debt can cause stress and gets in the way of pursuing your dreams and passions.

12. Having more than one bank account is never a good idea since it can complicate money management.

13. A Certificate of Deposit (C.D.) is a great way to invest your money to get a high return.

14. If you're young and healthy, medical insurance is not as necessary.

15. While it may not always appear so, the majority of Americans live paycheck to paycheck.