Online exam to test teens' financial smarts

Although some may question the financial acumen of an institution $14 trillion in the red, Uncle Sam wants to teach America's high-school-age students more about finance so that they will be better prepared to make personal financial decisions. The Treasury Department has produced an online exam meant to boost what kids 13 to 19 know about saving, budgeting and investments. Online education materials posted for teachers cover investing for college and retirement, and managing expenses such as cell phones. The voluntary personal financial exam will be online through April 8. Students and educators placing in the top 20% across the nation will be given official award certificates, and the students with the highest scores will be recognized in a ceremony in Washington this spring. Participating in the challenge will help students “understand the risks and benefits associated with debt from things like car loans and credit cards,” Treasury Secretary Timothy Geithner said in a statement. “Empowering students with this knowledge is important for the long-term strength of our economy.” The 2011 National Financial Capability Challenge includes questions such as: Carolina has $5,000 saved from working at different jobs. She puts her money in a savings account that pays 4% per year in interest. How much money will be in her account at the end of the first year and at the end of the second year? A: End of first year, $5,100; end of second year, $5,400. B: End of first year, $5,200; end of second year, $5,400. C: End of first year, $5,200; end of second year, $5,408. D: I don't know. (Answer: C)