Financial Health Checkup

This program will take about 10 minutes to complete.

NOTE: Financial education content for the program was taken from Cash Course, an interactive financial education program created by The National Endowment for Financial Education ® (NEFE ®) - an independent, nonprofit foundation committed to educating Americans on a broad range of financial topics and empowering them to make positive and sound decisions to reach their financial goals. For more than 30 years, NEFE has been providing funding, logistical support, and personal finance expertise to develop a variety of materials and programs, such as Cash Course.

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Piggy

Financial Health Checkup - Question 1 of 12


How do you figure your net worth?

Add up all your assets
Add up all your after tax income for one year
Subtract total liabilities form total assets

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Piggy
ANSWER: Subtract total liabilities from total assets

EXPLANATION: When determining your net worth, first list the current value of all the assets you own, such as a car or house. This should also include bank account balances and investments.

Next list the total liabilities, such as mortgages, student loans, credit card balances, etc. you have and their amounts. Subtract the liabilities from the assets and this is your net worth.

Your net worth is usually required by lenders when you apply for a home loan or try to renegotiate debts. It also holds high importance in legal matters such as divorce, bankruptcy, and child support orders.

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Piggy

Financial Health Checkup - Question 2 of 12


When trying to find extra income what is NOT a good choice?

Apply for more credit cards
Look for valuable items that you no longer use that you could sell
Check over your pay check and statements to make sure no unnecessary deduction are being taken out.

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Piggy
ANSWER: Apply for more credit cards

EXPLANATION: Getting another credit card should be a last resort. By racking up large balances on credit cards, you are putting yourself into even more debt and making it harder to pay all your bills.

Doing little things like selling valuables you no longer use or checking your paychecks and statements for unnecessary deductions can really add up and leave you with extra income.

Also try using your skills and talents to earn money. Are you an awesome cook or don't mind cleaning? Find someone who would pay you to do it for them. Good at handyman repairs? Talk to your apartment complex to see if they have an opening for a handyman, you will either be paid or they will take a portion off of your monthly rent.

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Piggy

Financial Health Checkup - Question 3 of 12


What is NOT true about a budget or spending plan?

It's not about how much money you have, but about how well you plan and control your spending
It's important to budget money each month to be set aside for periodic or unexpected expenses
Student loans, birthday gift money, scholarships, money from parents, tax returns, etc. are not considered income, so they shouldn't be incorporated into a budget

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Piggy
ANSWER: Student loans, birthday gift money, scholarships, money from parents, tax returns, etc. are not considered income, so they shouldn't be incorporated into a budget

EXPLANATION: Don't think that just because you don't have a job you shouldn't budget. It is impossible to survive without some source of income. Student loans, birthday gift money, scholarships, money from parents, tax returns, etc. are all sources of income.

With scholarships and student loans - Make sure you wisely spend that money by dropping classes before the full refund date so you aren’t paying for a class that you don't actually take, use the Rec Center instead of paying for a gym membership somewhere else, and if you have a meal plan, use it!

If you get a student loan refund check, don't use it to buy a brand new tv or designer clothes. Use it to pay for bills or make a payment on your student loan. If your parents give you money, make sure you know where that money is going to prevent having to ask them for more.

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Piggy

Financial Health Checkup - Question 4 of 12


What is NOT a good tip for saving?

Pay yourself first- consider savings as a “bill” and put a specified amount into your saving account each month (consider using payroll deductions)
Wait until the end of the month and if you happen to have money leftover put it into savings
Put away any extra money like gift money, refunds, or bonuses instead of spending it on unnecessary things

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Piggy
ANSWER: Wait until the end of the month and if you happen to have money left over put it into savings

EXPLANATION: Make saving a habit by paying yourself first.

Direct deposit is a great tool for saving because the set amount of money is taken out of your pay check and put into savings, so you don't really miss that money because you don't see it.

By waiting until the end of the month to put away any extra money, you are more likely to buy unnecessary things and less likely to save as much or save any.

On top of paying yourself first, putting away extra income is also a good way to make savings grow.

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Piggy

Financial Health Checkup - Question 5 of 12


What is true about setting financial goals?

Goals aren't necessary until you graduate and want to buy a house
It's not necessary to set a target date for reaching goals - just put money aside whenever you can
Write your goals down and put them in a place where you can see them

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Piggy
ANSWER: Write your goals down and put them in a place where you can see them

EXPLANATION: Research actually shows that by writing goals down and putting them in a place you can see them, you are more likely to reach that goal.

Goals should be specific, realistic, and time-bound. Make sure you know what you are saving for, why you want to reach that goal, how long you have to save, and how much it will take each month.

The sooner you start goals, the better off you are. If you know you want to buy a car in a few months or a house a few years down the road, start saving for these goals now.

Through compounding interest, you will be paid interest on your initial depost as well as on the interest you have already earned. This means your money will grow more and grow faster. Don't wait until you are ready to buy something to start saving for it - set your goal ahead of time!

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Piggy

Financial Health Checkup - Question 6 of 12


What action negatively influences your credit score the most?

Paying only the minimum balance
Not paying your bills on time
Having more than 3 credit cards

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Piggy
ANSWER: Not paying your bills on time

EXPLANATION: The biggest influence on your credit score is your payment history - AKA paying bills on time. A late payment can lower your score by 60 points and even stay on your credit report for 7 years.

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Piggy

Financial Health Checkup- Question 7 of 12


What is a grace period?

The time when you don't have to pay interest - The time between when you receive your credit card bill and when you have to pay it
The amount of time after your bill is past due that you won't be charged interest
The time between the purchase on your credit card to the time you get the bill

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Piggy
ANSWER: The time when you don't have to pay interest - The time between when you receive your credit card bill and when you have to pay it

EXPLANATION: When you buy an item on credit, you don't have to pay for that item until your credit card is due. So the grace period is the time between when you receive the bill and the due date of that bill.

You will not be charged interest during that time. Using credit cards doesn't have to cost you extra money. Paying off the balance in full before the grace period is up will prevent you from paying any interest. Once that grace period is over, you will start being charged interest on your balance.

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Credit Score

Financial Health Checkup - Question 8 of 12


What should you do if you know you won't be able to pay a bill?

Don't worry about it and pay the bill whenever you get the money
Contact the creditor before its due
Contact the creditor after its due

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Credit Score
ANSWER: Contact the creditor before its due

EXPLANATION: Creditors are much more willing to work with you if you contact them before you bill is due. If you have a legitimate reason why you won't be able to pay your bill, talk to them about it. They will most likely be willing to work out a plan if you come to them in advance.

Do be sure that this is not happening constantly. Creditors won't want to help you out if you consistently tell them you can't pay your bill.

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Piggy

Financial Health Checkup - Question 9 of 12


What should you typically NOT do when getting any type of insurance?

Shop at least three places, compare rules & policies, and ask about discounts
Do your research and read sources of information such as Consumer Reports
Purchase car, health, and home insurance all from separate companies

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Piggy
ANSWER: Purchase car, health, and home insurance all from separate companies

EXPLANATION: Most of the time when you buy more then one type of insurance form the same company, you will get a discount.

Don't just go with the first insurance company you see. Make sure you shop around to find the best deal and do your research to see what companies have a reputation for having good policies.

Maintaining a good credit score will also help keep insurance rates lower because these companies will check your score.

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Piggy

Financial Health Checkup - Question 10 of 12


When is the best time to start investing in your retirement?

Once you land a full time job
You don't need to worry about it until you are nearing retirement
Now

Next

Piggy
ANSWER: Now

EXPLANATION: Now is the best time to start saving for retirement. Starting early gives you the advantage of accumulated compound interest over a longer period of time.

If you work for a company that offers you the ability to invest in a 401K, do it. The company will likely matach a percentage of the amount you contribute to the 401K, which is free money. Another good option for saving for retirement is a Roth IRA.

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Piggy

Financial Health Checkup - Question 11 of 12


Before you purchase a large item, you should:

Read over the entire contract and make sure you understand it before signing it
Take advantage of sales, but still compare prices.
Both

Next

Piggy
ANSWER: Both

EXPLANATION: Before you sign anything, make sure you read and understand the entire contract, even the fine print! Often the fine print is so much smaller because it's full of regulations and restrictions that the company would rather not tell you because it makes the offer less appealing.

If you don't understand what something means, be sure to ask. By signing your name, it means you agree to everything in the document. Knowing what's in that document from the beginning will help to save you from stress down the road.

Sales can be a great thing, but do compare to make sure its actually a good deal. Sometimes places will lower their prices by only a few dollars and advertise it as a sale. Other times they will lower the price quite a bit and you can save a lot of money.

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Piggy

Financial Health Checkup - Question 12 of 12


What is NOT true about a home filing system?

It should be kept in a dry area with good air circulation
It is a place to keep all records including: tax documents, credit card statements, contracts, receipts, instruction manuals, warranties, etc.
They require expensive equipment and aren't necessary until you own a home

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Piggy
ANSWER: They require expensive equipment and aren't necessary until you own a home

EXPLANATION: A home filing system doesn't have to be fancy and expensive. A plastic tote or a small filing cabinet will do the job. It's a great place to keep all your files in one spot so you know where to look when you need to retrieve something.

Make sure your storage area is dry with good air circulation to prevent documents from getting damaged.

Even as a college student you may have credit card statements, instruction manuals, etc. that you will need to keep. Starting a filing system is a great way to keep everything organized and save you a lot of time when you need to find something.

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FINAL RESULTS

0-4 Correct

You need to brush up on your money management knowledge!

Learn More About Money Management

Learn more about financial success by scheduling a money management advising appointment at the UNL Student Money Management Center.

FINAL RESULTS

5-9 Correct

You definitely have some money management knowledge, but you're not financially savvy yet.

Learn More About Money Management

Learn more about financial success by scheduling a money management advising appointment at the UNL Student Money Management Center.

FINAL RESULTS

10-12 Correct

Congratulations! You are well on your way to becoming financially successful.

Learn More About Money Management

Learn more about financial success by scheduling a money management advising appointment at the UNL Student Money Management Center.