ICFE eNEWS #12-02 - January 10th 2012
The F.A.T. (Financial Aptitude Test)
Do you know enough about finances to survive during these
economic hard times? Take the F.A.T. and see.
By Jim Garnett, a/k/a
Jim is a member of the ICFE's Board of Educational Advisors.
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
- 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
- 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 False?
- 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
(1) False. Always pay the balance in full so as to avoid finance
(2) False. One's credit record affects a wide range of areas
including all of these.
(4) False. An emergency savings account is a necessitybecause
there is a great difference between paying for an emergency with
money as opposed to credit!
(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 buy things.
10-9 Correct: Pretty Savvy
8-6 Correct: Could Use Refresher Course in Financial Matters
5 and Below Correct: Unprepared - Seek Financial Education
Immediately © Jim Garnett.
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general discussion of the subject matter and DOES NOT constitute
a legal opinion about the situation. For further information
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Paul S. Richard
President - Executive Director
Institute of Consumer
Financial Education (ICFE)
About the ICFE:
The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation). The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely.
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.
The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org). CASDRAP disbanded in 2010, shortly after the web site project was completed. In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.
The ICFE is also an on-line help for consumers who spend too much. ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.
Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org. Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G, a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.