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Excerpted and updated from “Take Our ‘Financial Aptitude Test’ — the FAT,” Spring 2005.

1. It's always best to send in just 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?
   Check for Answer

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 will never affect non-credit decisions, such as applications for insurance or an apartment.

   True or False?
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3. There's no harm in having many different credit cards.

   True or False?
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4. A debit card may be a good option for a young person.

   True or False?
   Check for Answer

5. People in their 20s should just focus on meeting monthly expenses and not start saving for retirement until their 40s at the earliest.

   True or False?
   Check for Answer

6. If you receive an email 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 email explains the reason for the request and shows the company’s official logo.

   True or False?
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7. All checking accounts are pretty much the same in terms of features, fees, interest rates, opening balance requirements and so on.

   True or False?
   Check for Answer

8. If you or your family has $250,000 or less on deposit at an �౦��Ϸ����-insured bank, and the bank fails, your money is completely safe.

   True or False?
   Check for Answer

Quiz Answers

1. False. Make sure that the credit card company receives as much or all of the balance due on your credit card by the due date. This helps you minimize or avoid costly interest charges.
2. False. Credit bureaus prepare credit scores for lenders, employers, insurance companies, landlords and others who need to know someone's financial reliability. The weaker your credit scores, the more likely you could be turned down for a job or an apartment or be quoted a higher cost when you apply for auto insurance.
3. False. The more credit cards you carry, the more inclined you may be to use them for costly impulse buying. In addition, each card you own — even the ones you don't use — represents money that you could borrow up to the card's spending limit. This means that the next time you apply for credit you may only qualify for a smaller or costlier loan.
4. True. Among the benefits of debit cards: As long as you are careful to avoid overdrawing the account, you won’t go into debt and you won’t pay interest because the money is automatically deducted from your bank account.
5. False. Experts say it’s important for young people to save money for long-term goals, particularly retirement (even though it may be 40 or 50 years away). Start saving as early as you can. The combination of adding to savings and the compounding of interest can bring dramatic results over time. Also explore options to save money at work, which may come with matching contributions from your employer.
6. False. Reputable organizations won’t contact you to verify account information online because they already have it.
7. False. Banks usually offer several accounts to choose from with different features and fees. That’s why it’s important to shop around for a good deal.
8. True. Your funds in checking and savings accounts are fully insured up to $250,000, and sometimes more, under current laws. To learn more, call the �౦��Ϸ���� toll-free at 1-877-ASK-�౦��Ϸ���� (1-877-275-3342) or go to our “Deposit Insurance” webpage. If you are a person who is deaf or hard-of-hearing, please call 1-800-925-4618.

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