Page 253 - Keys to College Success

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TEST YOUR FINANCIAL LITERACY

As with any academic area of study, knowledge of basic terms is a necessary foundation on which to build understanding.
Test your knowledge of some financial literacy terminology with this matching exercise. In the blank next to each term,
write the letter that corresponds with the correct definition. An answer key is provided at the end of this chapter.
1. ____ f nance charge 6. ____ credit score
2. ____ net worth 7. ____ interest
3. ____ IRA 8. ____ APR
4. ____ debit card 9. ____ down payment
5. ____ overdraft 10. ____ identity theft
A. A number assigned to you based on your credit activity—higher numbers are better.
B. Using more money than you have available in a bank account.
C. Your total f nancial assets—cash, savings, property—minus your debt.
D. A percentage charged annually on the amount of a loan or credit card debt.
E. A f rst payment on a large purchase that you cannot cover all at once.
F. When someone acquires and uses your personal information without your consent.
G. When you use it, the purchase amount is subtracted from your bank account.
H. A percentage that you earn on savings or pay on borrowed money or credit.
I. What it costs you to use credit; can be a percentage of what you owe, or a f at fee.
J. An account designed to help you save money for retirement.

Talk to your instructor. Focus on specific mistakes on objective
questions, or if you were marked down on an essay, ask what you
could have done better. If you feel that an essay was unfairly graded,
ask for a rereading. Approach your instructor in a nondefensive way
and you will be more likely to receive help. Frankly, the fact that you
care enough to review your errors will make a good impression on
its own.
Rethink the way you studied. Make changes to avoid repeating
your errors. Use varied techniques to study more effectively so that you
can show yourself and your instructors what you are capable of doing.
The earlier in the term you make positive adjustments the better, so
make a special effort to analyze and learn from early test mistakes.

If you fail a test, don’t throw it away. Use it to review trouble-
some material, especially if you will be tested on it again.

The importance of learning from experience applies to life tests as
well as academic ones. Suzanne, for example, could not have ascended
to the position of anchorperson at CNN without assessing her perfor-
mances over time, deciding what could be improved, and implement-
ing plans to do things differently next time she appeared on camera.

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