Personal finance will soon be a high school graduation requirement in Pa. Can you pass a quiz on the subject?

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Unlike debit cards, credit cards don’t require you to have the money available in your checking account before making a purchase. You can swipe now and pay off the charge later. But if you rack up a big balance and don’t pay it off within the month, you’ll also have to pay interest.

And many people aren’t paying their credit cards off: U.S. consumers have amassed a record $1.14 trillion in credit card debt. Experts say many people get into trouble in part because they don’t know basic information about credit cards, like what their interest rate is or the importance of paying off the balance each month.

Have credit card debt and want to get a better handle on it? Last year, The Inquirer spoke with experts who offered their advice.

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If you start contributing to your retirement account as early as possible, you can maximize your savings. The amount of money put aside in a 401(k) can grow substantially over time.

Some employers offer a match, which means they’ll put in a certain amount of money based on what you contribute. Experts recommend you take full advantage of a company match. If not, they say, you’re leaving money on the table.

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While checks may feel like an obsolete way of paying for things in 2024, some businesses and services still ask to be paid via check. And checks can be the safest form of payment in some situations, such as when mailing a gift or making a charitable donation.

“I prefer to use a physical check rather than cash because there is a paper trail,” said Bryson Roof, a financial advisor at Fort Pitt Capital Group in Harrisburg. Many of his clients under 45 don’t know how to write a check or balance a checkbook, he said.

It’s a good idea to familiarize yourself with how to write a check and how to balance a checkbook.

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Your credit report includes your personal information, credit history — including how many current and former accounts you have — and public records, such as lawsuits, arrests, and bankruptcy filings.

The report can be used by banks, landlords, insurance companies, and others who are assessing your ability to make future payments.

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It can be difficult to get a credit card without credit history, especially if you’re under the age of 21. And not having a credit card can make it hard to build credit.

But there are workarounds. Along with becoming an authorized user on the credit card of a parent with good credit, experts recommend any of the following: opening a credit card account with a cosigner; paying off some of the interest on unsubsidized student loans before you graduate; and seeing if you are eligible for a secured credit card, which requires an upfront payment.

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The age-old advice has been not to spend more than 30% of your monthly income on rent or mortgage. That means if you make $4,000 a month, you could spend up to $1,200 on housing. However, some experts say this rule is outdated due in part to the increased cost of living.

Regardless, housing is often the largest cost in a monthly budget (unless you have to pay for childcare), followed by food and transportation.

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Many U.S. consumers don’t know that overdraft protection is optional.

“What I’m starting to see more and more with young adults, which I find very concerning, is they are struggling with their bank accounts, and they are overdrawing,” said Kim Cole, chairwoman of the New Jersey Coalition for Financial Education and community engagement manager at the nonprofit Navicore Solutions. “That really is the first level of basic personal finance.”

Overdraft protection sounds like something that would only make you safer, but it actually results in billions of dollars in extra charges each year.

If you have overdraft protection turned on, a bank can charge you – often $35 a transaction – if you make a purchase or withdrawal that brings your account below zero. If you don’t opt in for the protection, the purchase would be declined, with no extra charges.

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“Good debt,” such as a student loan or a mortgage, has a relatively low interest rate and is considered an investment in your future. “Bad debt,” meanwhile, includes credit card debt, high-interest car loans, and personal loans. This kind of debt usually has higher interest rates and can negatively impact your credit.

“I oftentimes have to counsel and educate my clients on when to use debt and how to use debt appropriately,” Roof said, noting an example of “good debt” is “buying a home, a reasonably priced home based on your income.”

“Now [if] you want to go to a Taylor Swift concert,” and charge it to a credit card you won’t pay off, he added, that’s “probably not the best use of debt.”

Car loans can be considered “good debt” or “bad debt,” depending on whom you ask and the specific situation in question. Cars depreciate over time, but if you need one to get to work, it can be an investment in your future. If you qualify for a low interest rate, or take advantage of a financing deal, the vehicle is an even better investment.

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Student loans often come with tricky terminology that can be hard to keep straight.

When it comes to subsidized vs. unsubsidized loans, the main difference is that interest starts accruing right away with unsubsidized loans, and you are responsible for paying back all of it.

With subsidized loans, the federal government covers interest while you’re still in school, as well as during any grace or deferment periods.

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Anyone with healthy savings may benefit from using a money market account, which often requires a minimum balance of at least $2,500 – and sometimes requires as much as $10,000.

These accounts accrue more interest than traditional savings accounts. And unlike a certificate of deposit, which is the account where you leave money for a set period of time, money market accounts typically don’t charge withdrawal fees.

A cash management account is an account where you can hold both savings and investments.