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DO YOUR MONEY SMARTS MAKE THE GRADE?

You sailed through your senior year, aced the TAKS test, and earned your diploma. Now, take this final test to determine if your money smarts make the grade.

True or False – Read each statement and determine whether it is true or false.


True

False
1. You want to purchase a $30 shirt at the mall. Your summer job pays $6 an hour. You will only need to work five hours to earn the $30 needed for the shirt.

True

False
2. There’s no need to match the checks you’ve written and debit card purchases you’ve made to your bank statement, because you can check your account balance over the phone or online anytime you need to know it.

True

False
3. After pulling an all-nighter studying for an exam, you need a cappuccino to keep you awake for the test. The bank’s Web site shows that you have $25 left in your account. You head to the coffee shop to purchase your cappuccino, assuming the debit card will be declined if there are insufficient funds.

True

False

4. The close quarters of most college dormitories means college students are at a high risk for identity theft.


True

False
5. As long as you still have money at the end of the week, you don’t really need to keep track of where you’re spending your money.

True

False
6. Maggie has $1,000 worth of credit card debt and tries to pay the minimum balance each month. Sometimes she pays a few days late or forgets to pay at all. But she knows that won’t affect her credit score because she’s just a college student.

True

False
7. Marcus receives a $200 monthly allowance from his parents to help cover his school expenses. He also works part-time and earns about $300 a month. Marcus must spend $150 on rent and $100 on car insurance. If he budgets $85 for eating out, $45 for clothes, and $50 for everything else, it will take him eight months to accumulate savings of $500.

True

False
8. A thief steals your credit card and racks up $2,000 worth of charges. You notify your credit card company as soon as you realize the card is missing, but you must pay off the $2,000 bill charged by the thieves.

True

False
9. Sales taxes are not deducted from your paycheck by the federal government.

True

False

10. Using a cross-cut shredder to destroy credit card applications and sensitive personal information like Social Security numbers is an effective way to prevent identity theft.