Do You Have What it Takes to Be Financially Independent?

1. How do you handle your earnings from work?

Create a budget after the funds are deposited into your bank account.

Withdraw the cash, pay your bills, and spend the rest.

Create a budget before the funds are deposited into your bank account.

Treat yourself to dinner, go shopping, and use whatever is left to pay bills.

Correct!

Wrong!

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2. When making a big-ticket purchase, you should...

Negotiate the purchase price before making a decision.

Purchase the item only after you’ve saved for it and found the best deal.

Shop around and go with the store that’s offering the best deal.

Purchase the item from the first store you can find that sells it.

Correct!

Wrong!

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3. If you’re strapped for cash but need to pay rent, which of the following is the best option?

Apply for a cash advance.

Plan ahead and minimize expenses so you can avoid the issue altogether.

Call your parents and demand that they pay it.

Use a credit card.

Correct!

Wrong!

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4. Which of these best describe your debt-management practices?

You skip monthly payments often.

You make the minimum monthly payments on time each month.

You don’t always make the minimum monthly payments on time each month.

You pay more than the minimum monthly payments each month, and do it on time.

Correct!

Wrong!

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5. Which of these is the best way to make sure you save each month?

Avoid eating out.

Don’t shop at the mall.

Use a credit card when you run out of money.

"Pay yourself first" (put money towards savings and necessary expenses first).

Correct!

Wrong!

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6. Do you tend to pay bills on time or wait until the last minute?

On-time.

A little bit of both.

Last- minute.

I don’t have any bills to pay.

Correct!

Wrong!

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7. Budgeting is vital for your long-term financial health because...

All of the above.

Facilitates stability and wealth-building.

Helps you save money.

It serves as a roadmap to help achieve financial goals.

Correct!

Wrong!

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8. If Cam Newton wants to calculate his net worth, he would...

Add the total amount of his assets and liabilities.

None of the above.

Deduct the total amount of his assets from his total liabilities.

Deduct the total amount of his liabilities from his total assets.

Correct!

Wrong!

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9. If you forget to make a student loan payment and the account goes into default, you should...

Ignore the calls from the loan servicer because you’ve spent all your money.

Make the payment before the end of the month.

Double up the payment the following month.

Make the payment right away and call the loan servicer to request that they waive the fee.

Correct!

Wrong!

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10. Which of these is the best way to make use of financial windfalls?

Get current on past-due bills.

Spend all the money at the mall.

Buy VIP tickets to that Drake concert you want to go to.

Treat your younger siblings to the Kids’ Choice Awards.

Correct!

Wrong!

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11. Credit cards are...

A great safety net when you get into a financial crunch.

A tool to build credit, but should be paid off every month.

An interest-free loan to cover nights on the town.

Evil and will ruin your life.

Correct!

Wrong!

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12. You want to attend a 5 Seconds of Summer concert but need to pay for car insurance. If you only have enough money for one, you...

Pay your car insurance and start saving so you can attend in the future.

Use a credit card to pay the car insurance bill.

Borrow the money from a friend to purchase the ticket.

Take out a payday advance to cover the price of the ticket.

Correct!

Wrong!

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