1. Why is it important to know your numbers when it comes to debt?

A. Because math class never ends
B. If you do not write it down it does not exist
C. Awareness is power and you cannot fix what you cannot see
D. To impress your friends with your debt
Correct Answer: C. Awareness is power and you cannot fix what you cannot see

Explanation: Don’t Fear Your Finances. Face them! Listing your balances, minimums, due dates, and interest rates puts YOU in control. Debt feels scarier in the dark. Shine a light on it so you can actually tackle it!

2. There are two main methods to tackle debt: Snowball and Avalanche. Which one is best?

A. The Avalanche method saves money by tackling the highest interest rate debt first.
B. The Snowball method gives you motivational wins by paying off the smallest debt first.
C. Choose whichever method you will actually stick with
D. Flip a coin because it is all the same
Correct Answer: C. Choose whichever method you will actually stick with

Explanation: Snowball gives you motivational wins by paying off the smallest first. Avalanche saves money by tackling the highest interest first. Either way, being in debt is a situation that requires planning to handle it, and best plan is the one you will keep up with!

3. What does it mean to “carry a balance” on a credit card?

A. You get rewarded for spending more
B. You didn’t pay the full amount and interest is being charged
C. You increased your credit score automatically
D. It means your card has reached maximum capacity
Correct Answer: B. You didn’t pay the full amount and interest is being charged

Explanation: Carrying a balance means you’re paying interest every month. Pay in full by the due date to avoid those extra costs.

4. Why is it a smart idea to set up automatic payments?

A. Robots are taking over anyway
B. It guarantees you never miss a due date or rack up late fees
C. It makes your bank think you are rich
D. It helps you avoid checking your statements
Correct Answer: B. It guarantees you never miss a due date or rack up late fees

Explanation: Setting up automatic payments guarantees you never miss a payment due date or rack up late fees. Not only does this help reduce your stress, your credit score gets a boost from perfect on time payments!

5. How do small daily purchases—like $5 coffees or $10 lunches—impact your financial health over time?

A. They’re too small to matter
B. They can quietly add up to hundreds each month and sabotage your payoff goals
C. They build your credit score
D. They cancel each other out if you use cash sometimes
Correct Answer: B. They can quietly add up to hundreds each month and sabotage your payoff goals

Explanation: Small daily purchases can quietly add up and sabotage your payoff goals. $10 a day = $300 a month. Use an app or our Daily Expense Tracker to see where your money is really going. Small steps = BIG wins!

6. Why is it important to understand the emotional triggers behind your credit card spending?

A. Because it makes shopping more fun
B. Because emotions don’t impact your budget
C. Because emotional spending can lead to overspending and long-term debt
D. Because credit card companies encourage emotional purchases
Correct Answer: C. Because emotional spending can lead to overspending and long-term debt

Explanation: Many of us swipe when we’re tired, stressed, celebrating, or even bored. Awareness is your superpower! Track your spending and your feelings to build a healthier money mindset. Try This: Use the Daily Tracker to jot down what you bought and how you felt before and after. You might spot a pattern… and you can absolutely change it!

7. What is a healthy philosophy about paying off debt?

A. It is punishment for bad choices
B. It is boring but necessary
C. It is about buying your freedom and peace of mind
D. It is something you should avoid thinking about
Correct Answer: C. It is about buying your freedom and peace of mind

Explanation: It is about buying your freedom and peace of mind. Debt payoff is not about shame. It is about reclaiming your future! Every payment is a step toward peace and financial independence.