Hey College Students – Can You Pass This Quiz?
Going to college can be a challenging experience, especially in the classroom. But students also end up getting an education when it comes to managing their money. Some do a good job at it. Others? Well, let’s just say they could use some help.
Here’s a little pop quiz for students (and their parents alike) that could be useful on and around campus:
When using an ATM, it’s best to:
- Avoid using the machine at night and in unfamiliar surroundings.
- Have your ATM card ready to use right away as you approach the machine.
- Always take transaction records with you.
- Immediately put any cash withdrawals in your wallet, pocket, or purse.
- Keep your PIN secret and use your body and hand to block the ATM keypad as you enter your PIN.
Correct answer: All of them. And here’s a bonus answer: If you’re using a drive-up ATM, make sure your vehicle doors are locked and windows, other than the driver’s, are up.
Creating a budget is a great idea.
Correct answer: A. One of the best ways to keep track of funds is to establish a budget and stick to it. This includes determining all revenue sources and all expenses on a monthly, if not weekly, basis. Speaking of expenses – when you actually keep tabs on the coffee shop runs and late-night trips to fast-food joints, you’ll be surprised at how much is spent and may be prompted to cut back on these expensive habits.
Credit cards are good for:
- Practically anything, from food to clothes to trips and everything in between.
- Letting other people borrow if they get in a financial pinch.
- An easy way to access money when you need it.
- A good way to establish a positive credit history and helpful in case of an emergency.
Correct answer: D. If used prudently, a credit card can be a successful way to develop a strong, positive credit history, which is especially useful once out of college and in the “real world”, where a solid credit record is important for big purchases such as cars and homes. Looking at the other responses, the last thing you want to do is ring up a large credit card bill that becomes unmanageable to pay off. And they may be your friends, but that doesn’t mean you should be bailing them out of a financial situation. As far as tapping a credit card for money – that’s an easy and dangerous habit to get into, particularly since it seems like “easy money” but could cost more if there’s a higher interest rate for cash transactions (which there usually is).
It’s safe to use online banking and pay bills online while using public Wi-Fi.
Correct answer: B. Never use public Wi-Fi for any financial activities, including checking bank accounts, paying bills, etc. This source for getting online provides for no protection from cyber crooks, who are always lurking in the shadows, waiting for someone to check their account balances or pay a credit card bill. They’re adept at snatching sensitive information from mid-air and then using it against you, such as making fraudulent purchases or draining money out of your checking account.
So how did you do? If you correctly answered all of the questions, you’re prepared for your college years. If you missed a few, don’t worry, you’ll learn along the way. It’s all part of the college experience!