ICFE eNEWS #10-13 - April 1st 2010
The Financial Aptitude Test
by Jim Garnett, a/k/a Ask Mr. G. and a member of
the ICFE's Board of Educational Advisors
Do you know enough about financial things to survive during these
economic hard times? Take the F.A.T. Test and see.
Financial Aptitude Test (F.A.T.)
- It is best to pay only the minimum payment due on a credit card bill
each month rather than pay your bill in full. True or False?
- 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 will not
affect your ability to get a job, get an apartment, or how much your car
insurance will cost. True or False?
- A debit card is 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?
- There is no good reason to have an emergency savings account if you
have credit cards to pay for emergencies. True or False?
- When you use a credit card, it creates a debt. It is not the same
as using money although both credit and money will buy things. True or
- 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. True or False?
- If you have access to buy something, it is proof that you can afford
to buy it. True or False?
- You receive an e-mail with a company logo you recognize . It is
safe to help them "update your records" by sending them your social
security number and account information. True or False?
- If you do not want anyone to know how you pay your debts, you can
"opt out" of having a credit record with your credit history on it.
True or False?
- Calculating how many hours you must work in order to buy an item
will help you decide how much you want or need it. True or False?
Answers: (1) False. Always pay the balance in full so as to avoid
finance charges. (2) False. One's credit record affects a wide range
of areas including all of these. (3) True. (4) False. An emergency
savings account is a necessity because there is a great difference
between paying for an emergency with money as opposed to credit! (5)
True. (6) True. (7) False. There are many things we have access to buy
that we cannot afford to buy. (8) False. Never send this type of
information in response to an email of any type. (9) False. There is no
"opting out" of your credit history. You will have one, good or bad.
(10) True. This is a great way to estimate how much effort it takes to
10-9 Correct: Pretty Savvy
8-6 Correct: Could Use Refresher Course in Financial Matters
5 and Below Correct: Unprepared - Seek Financial Education Immediately
AskMrG Financial Library
2216 SW 35th Street
Ankeny, IA 50023
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President - Executive Director
Institute of Consumer Financial Education
ICFE - Institute of
Consumer Financial Education -
info@ICFE.info - 619.239.1401