Biz Kid$ Financial Literacy Pre Questionnaire

Explanation
To be financially literate, it is important to budget your money. Budgeting involves creating a plan for how you will allocate your income, expenses, and savings. It helps you track your spending, prioritize your financial goals, and make informed decisions about where to allocate your money. By budgeting, you can ensure that you are living within your means, saving for the future, and making wise financial choices.

Explanation
The correct answer is Bank teller, loan officer, branch manager. When visiting a bank or credit union, it is likely that you will encounter a bank teller who handles transactions and provides customer service, a loan officer who assists with loan applications and approvals, and a branch manager who oversees the operations of the branch. These individuals play different roles in the banking institution and are commonly found in such establishments.

Explanation
The two most common accounts that individuals should open at a bank or credit union are a checking account and a savings account. A checking account is used for everyday transactions such as paying bills, making purchases, and withdrawing cash. On the other hand, a savings account is designed for individuals to save money over time. It typically offers a higher interest rate than a checking account and allows individuals to earn interest on their savings. By having both a checking and a savings account, individuals can easily manage their daily expenses while also setting aside money for future goals or emergencies.

Explanation
A CD account refers to a certificate of deposit. A certificate of deposit is a financial product offered by banks and credit unions where individuals can deposit a certain amount of money for a fixed period of time, typically ranging from a few months to several years. In return, the account holder receives a fixed interest rate that is higher than a regular savings account. The funds deposited in a CD account cannot be withdrawn before the maturity date without incurring penalties. CD accounts are considered low-risk investments and are popular among individuals looking for a safe way to grow their savings.

Explanation
In a savings account, your money grows through the process of earning interest. Interest is the additional money that the bank pays you for keeping your money with them. The bank uses your money to make loans or investments, and in return, they pay you a percentage of the amount you have deposited as interest. Over time, this interest accumulates and helps your money grow. Therefore, earning interest is the primary way in which your money grows in a savings account.

Explanation
An NSF fee, also known as an Insufficient Funds Fee or Non Sufficient Funds Fee, is a penalty charged by a bank when a customer writes a check without having enough money in their checking account to cover the amount. This fee is imposed to compensate the bank for the inconvenience and costs associated with processing a bounced check. It serves as a deterrent to discourage customers from spending more money than they have available in their account.

Explanation
The correct answer is to set short term, medium term, and long term goals. This allows for a balanced approach to saving money, as it ensures that you are not only focused on immediate needs but also planning for future expenses. Setting short term goals helps you save for immediate needs or wants, while medium term goals allow for saving for larger purchases or events in the near future. Long term goals help you save for bigger financial milestones such as retirement or buying a house. By setting goals in each of these timeframes, you can effectively manage your finances and work towards achieving your desired outcomes.

Explanation
Keeping a budget is essential for managing your finances effectively. It allows you to track your income and expenses, ensuring that you are aware of where your money is going. By having a budget, you can prioritize your spending, allocate funds towards your financial goals, and make necessary adjustments to achieve them. A budget provides a clear picture of your financial situation, helps you identify areas where you can save money, and enables you to make informed decisions about your spending habits. Ultimately, maintaining a budget empowers you to take control of your finances and work towards achieving your financial goals.

Explanation
If you are late paying a payment on a credit loan, several things can happen. Firstly, the debt can be sent to a collection agency, which means that the agency will take over the responsibility of collecting the debt from you. Secondly, there are penalties involved, which means that you will be required to pay a fee for being late. This fee is commonly referred to as a late fee. Additionally, your late payment will be recorded on your credit report, which can have a negative impact on your financial reputation. Lastly, the collection agency may contact you either by phone or in writing to notify you about the late payment and the actions they will take.

Explanation
Financial literacy means having knowledge and understanding of money, finance, and how to handle one's finances. It includes knowing about money, learning about money, and having knowledge of finances. It encompasses the ability to handle and manage money effectively and make informed financial decisions.