You don't need a #2 pencil or a calculator to take our quiz, but you do need a good understanding of the information in this special report to get a good score. Think you're ready?
1. It's always smart to send
in the minimum payment
due on a credit card bill
each month and stretch
out the card payments as
long as possible instead of
paying the bill in full. True
or False?
2. Your credit record (your
history of paying debts and
other bills) can be a factor
when you apply for a loan
or a credit card but cannot
affect non credit decisions,
such as applications for
insurance or an apartment.
True or False?
3. While one or two late
payments on bills may not
damage your credit record,
making a habit of it will
count against you.
True or False?
4. There's no harm in
having many different
credit cards, especially
when the card companies
offer free T-shirts and
other special giveaways as
incentives. The number
of cards you carry won't
affect your ability to get a
loan; what matters is that
you use the cards
responsibly. True or False?
5. A debit card may be a
good alternative to a credit
card for a young person
because the money to pay
for purchases is
automatically deducted
from a bank account, thus
avoiding interest charges
or debt problems. True or
False?
6. It makes no sense for
young adults to put money
aside for their retirement
many years away. People in
their 20s should focus
entirely on meeting
monthly expenses and
saving for short term goals
(such as buying a home or
starting a business) and not
start saving for retirement
until their 40s at the
earliest. True or False?
7. If you receive an e-mail
from a company you've
done business with asking
you to update your records
by re-entering your Social
Security number or bank
account numbers, it's safe
to provide this information
as long as the e-mail
explains the reason for the
request and shows the
company's official logo.
True or False?
8. The best way to avoid a
"bounced" check - that is,
a check that gets rejected
by your financial
institution because you've
overdrawn your account -
is to keep your checkbook
up to date and closely
monitor your balance.
Institutions do offer
"overdraft protection"
services but these
programs come with their
own costs.True or False?
9. All checking accounts
are pretty much the same
in terms of features, fees,
interest rates, opening
balance requirements and
so on. True or False?
10. If you or your family
has $100,000 or less on
deposit at an FDICinsured
bank, and the bank
fails, your money is
completely safe. True or
False?
How To Learn More
The FDIC offers a variety of assistance to help
consumers understand how to handle their money and
resolve complaints. Start with the consumer information
on the FDIC Web site at www·fdic·gov, where you'll
find consumer brochures and alerts, back issues of our
quarterly FDIC Consumer News, and an interactive
financial education program called Money Smart that
provides a basic introduction to bank services. You also
can get answers to questions by phone or e-mail (see
next page).
FDIC Consumer News provides continuing financial
education. You can sign up for a free e-mail
subscription. After each new edition is posted to our
Web site, you'll get an e-mail telling you about the issue
and linking you to any story that interests you. Just
follow the instructions posted at www·fdic·gov/about/
subscriptions/index·html.
Other federal government agencies, including those
listed on the next page and the Federal Trade
Commission (www·ftc·gov), publish consumer
information and have staff, Web sites and other
resources that can help answer your questions on
financial matters. Another good place to start is
www·mymoney·gov, the federal government's central
Web site for information about managing your money.
Other resources include financial institutions (through
their staff, brochures and Web sites) and personal
finance classes offered by schools, state and local
government agencies and non profit organizations.
These local classes may involve a partnership with the
federal government, such as those that offer the FDIC's
Money Smart curriculum. Another example is the
Cooperative Extension System (www·csrees·usda·gov/
financialsecurity), a nationwide educational partnership
of more than 3,000 local offices and 100 state
universities, and a research and education agency within
the U.S. Department of Agriculture.