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Teens: Are you ready for a credit card?

Credit card quiz for teens

Teens are a financial force. On average, a teenager spends more than $5,300 each year, according to a recent survey by Teen Research Unlimited, a Chicago area research firm. Many have credit cards or access to credit cards. And banks are courting you as the next wave of loyal customers.

But teens and adults look at credit differently. If you're a teen, do you have the know-how to avoid the money traps? Take this quiz to see if you really know the score when it comes to credit cards:

  1. A computer is on sale for $500. In addition, the retailer offers a store credit card with a 19 percent interest rate and minimum monthly payments of 2.5 percent of the balance. If you accept those terms and make minimum payments, you'll own that computer in:

    A little more than one year.
    A little more than three years.
    A little more than seven years.
  2. What percentage of older teens have their own credit cards?

    50 percent
    35 percent
    20 percent
  3. You can't meet your credit card minimum this month. You:

    Let it ride and double up next month.
    Borrow from parents.
    Send in the money as soon as you have it, but don't stress if it's a couple of days late.
  4. You get back from the mall and realize that your credit card is missing. You:

    Don't worry about it. Plastic is protected. If it falls into the wrong hands, you can dispute the charges when the bill arrives.
    Give yourself a day or two to find it. If you can't, then call the card company and report it missing.
    Call the card company immediately. Cancel the card and have them issue a new one.
  5. Saving is:

    A painful reality.
    An option, if you can put together the money you need in a few months.
    For losers who can't get credit.
  6. The major source of money management information for teens is:

    The media
  7. Who needs to live on a budget?

    Poor people who can't meet their bills.
    Middle-income people in financial trouble.
    Anyone with money and a pulse.

-- Posted: April 19, 2004

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Credit cards for teens and students
Tracking a teen driver
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