8 questions to test your financial savvy

Here are eight questions to test teens' understanding of some basic financial concepts, including developing a budget and building a strong credit history.

1. Which of the following would be beneficial in achieving financial security?

A. Adhering to your financial plan only when you are in debt

B. Creating a financial plan and then carrying it out

C. Assessing your "needs" only

D. Only considering your short-term goals

2. What does a budget help you do?

A. Stay in control of your money

B. Make purchases without considering what money you've spent so far

C. Prepare you financially for planned events only

D. Make impulse purchases

3. Which of the following is a benefit of short-term saving?

A. Allows you to stray from your budget because you have money saved in the bank

B. Allows for your financial security if an unexpected expense should arise

C. Enables you to stop saving when you have too much money in the bank

D. Allows you to overspend on items you want

4. Which of the following is a tip for saving?

A. Put all the money you get from your paycheck into your pocket

B. Develop a habit for putting a set amount or percentage of your paycheck into your savings account

C. Never deposit unexpected money into your savings

D. Develop a habit for saving only when the amount of money being put away is substantial

5. What should you remember about interest and borrowing money?

A. I should borrow enough money to buy everything I want

B. I should not worry about how much interest I must pay on a loan or credit card

C. When I borrow money, I should consider how much I will pay in interest and what the total amount is that I will have to pay back

D. Credit cards are a good way to buy what I want, when I want

6. Which of the following may lead to a financial problem?

A. Overspending

B. Categorizing your expenses into different funds

C. Understanding your positive and negative spending habits

D. Considering your values when determining your goals

7. Which of the following payment options allow the user to pre-establish the dollar value available for spending?

A. Smart card

B. Chip card

C. Stored value card

D. Debit card

8. Which of the following information may appear on your credit report?

A. A late payment on your magazine subscription

B. The last store where you shopped

C. Your family history

D. Your financial goals

ANSWERS: 1) B, 2) A, 3) B, 4) B, 5) C, 6) A, 7) C, 8) A

Source: Visa Inc.