1. Ch. 7 Financial Literacy

2. Describe a financially irresponsible person : bills not paid on time inadequate basics to live comfortably spends money on luxury items they can’t afford Paycheck runs out before the month is over Stressed out and relationships suffer Borrowed money is not repaid

3. Define a financially responsible person :

4. A financially responsible person looks like all of the following except: provides for their own wants and needs saves money for known events and emergencies enjoys vacations and leisure time lives a comfortable lifestyle spends more than their income using credit

5. TRUE or FALSE? A buying plan is an organized method used for short AND long term purchase planning…

6. What happens to the true price of an item you buy on credit and don’t pay off at the end of the month?

7. Name a few ways you can start building credit now:

8. TRUE or FALSE? A great way to build good credit is to pay the minimum amount required on your credit card each and every month. So, how much should you pay each month? As much as possible of the balance and strive to pay entire balance

9. TRUE or FALSE? If you miss a credit card payment you will not only a incur late fee, but also gain increased interest charges So, what will missing payments do to your credit rating?

10. Systematic decision making: reflects on pros of the decision reflects on costs of the decision process used to make choices reflects on cons of the decision all of these

11. What do we call ways to obtain credit to purchase an item other than with cash?

12. Describe what an over-the-limit fee is:

13. What is the term for the lowest amount you are required to pay each month on a credit card?

14. Match the term to the description: service credit installment credit fixed rate variable rate easy access credit credit that is obtained quickly and easily but can have high, hidden costs interest rate that does not change from month to month credit where you receive services now and pay for them later used to finance a single high- priced item with an equal payment over time interest rate a lender or creditor can change at any time