Find out how 79% of Gen Z survey respondents answered. 

Answer: The answer is FALSE. It's your on-time payment history that matters most and paying off your credit card balance every month eliminates those hefty interest charges. 

Questions: 

• Why do you think so many young people get the answer to this question wrong?
• 49% of credit card users admit to making a late payment on their credit cards which will lower their credit score, lead to a late fee and increase their interest charges. Why do you think so many make late payments? What steps can card users take to avoid paying their bill late? 

Here's the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (LendingTree survey): 

The myth that keeping a small balance on your cards is actually good for your credit score is pervasive — with just about two out of three Americans believing it. For the youngest consumers, Gen Z, the percentage is 79%. But it’s simply not accurate, says Schulz.

“The myth hurts cardholders because it costs them money. If they’re only carrying a small balance, it may not cost them a huge amount of money, but over time, it adds up,” he says. It’s especially concerning for the youngest generation who could end up carrying a balance for several decades.

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Looking for fun ways to teach your students about credit? Here's one of the most popular posts on the NGPF Blog: My 9 Favorite Games & Interactives to Teach Credit

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 Last day to get your guess in for NGPF's "Guess the CPI contest"...5 lucky classes will win $100 gift cards. More deets here. 

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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