In this version of our financial literacy test, we focus on all things holiday spending – taxes, trends and paying off the aftermath on a credit card. Test your knowledge and learn something new, or pat yourself on the back for answering these correctly.
1. On Federal Reserve System holidays, the Federal Reserve Banks and Branches are closed for the day, which could also affect whether your local branch is closed for business that day. Which one of these days during the holiday season is NOT observed by the Federal Reserve System?
a. Thanksgiving Day
b. Christmas Day
c. New Year’s Eve
d. New Year’s Day
2. True/False: If you gift someone $20,000, you’ll need to disclose that to the IRS.
3. True/False: If you receive a gift of $20,000 from a family member, you’ll need to disclose that to the IRS.
4. True/False: In 2018, Black Friday was the biggest holiday online retail spending day.
5. According to a recent survey by the National Retail Federation, how much do consumers say they will spend on average this holiday season?
6. Suppose on December 1, you buy a gift for yourself online with a credit card and you see the price of that gift dropped 25 days later. Being reimbursed for the price difference by your credit card issuer is a credit card perk generally called:
a. Purchase Protection
b. Price Protection
7. Let's say you put $1,048 of holiday spending on a credit card with an 18% Annual Percentage Rate (APR) and make a monthly payment of $100 towards it. Assuming no other fees are charged, how many months will it take to pay off the balance?
8. In the same scenario above, how much should your monthly payment be?
9. True/False: You can open up a savings account for a child as a great holiday gift.
10. According to a recent survey we conducted, what percentage of Americans say that they’ll likely end up spending more money than they’d like this holiday season?
This article is for informational purposes only and is not a substitute for individualized professional advice. Articles on this site were commissioned and approved by Marcus by Goldman Sachs®, but may not reflect the institutional opinions of The Goldman Sachs Group, Inc., Goldman Sachs Bank USA or any of their affiliates, subsidiaries or divisions.