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The information contained on this site is designed to educate students about broad topics in Financial Literacy. It is in no way meant to advise or counsel and cannot take the place of a financial professional, such as a CPA or CFA.  Each financial situation is different; please seek a professional.

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Financial Literacy 101

1. How much does the average college student owe in student loans upon graduation from college?

                 A.             Nothing

                 B.             Under $ 10,000

                 C.             Between $ 10,000 and $ 15,000

                 D.             Between  $ 16,000 and $ 21,000

                 E.              Over $ 22,000

 

 

 

2. Jeff is going to purchase a new car, borrowing $20,000 to do so.  He gets a 5 year loan at a 9% interest rate.  How much will Jeff have paid at the end of his car loan? (To the nearest dollar)

                 A.             $ 21,802

                 B.             $ 22,395

                 C.             $ 24,725

                 D.             $ 23,914

                 E.              None of the above

 

 

 

3. Using the example above, how much would Jeff have saved in interest had he gotten a 6% interest rate? (To the nearest dollar)

                 A.             $ 734

                 B.             $ 827

                 C.             $ 924

                 D.             $ 1,236

                 E.              $ 1,641

 

 

 

4. The most important factor in deciding to purchase a car is

                 A.             Resale value

                 B.             The monthly payment

                 C.             The price

                 D.             The interest rate

                 E.             All of the above

 

 

 

5. [True or False] If you are late on a credit card, your other creditors can legally increase your APR.

                 A.             True

                 B.             False

 

 

 

6. [True or False] If you don’t finish college, you don’t have to repay your student loans.

                 A.             True

                 B.             False

 

 

 

7. [True or False] Employers can, and will, pull prospective employee’s credit as a routine part of a background check.

                 A.             True        

                 B.             False

Take this short quiz and see what you know about personal finance.

You might be surprised at the results!