You’ve been on this planet for a few decades, so you know a thing or two about finances. Right?
While you may have picked up everything you feel you “need” to know in the world of money management, it doesn’t mean you’re an expert on the subject, by any means.
There’s no need to have so much financial knowledge that you’d choose it as your specialist subject on a quiz show, but it’s still worth being aware of the things that might help you spend, save and invest wisely into old age.
Wondering why it’s important to have financial knowledge?
The Penny Hoarder conducted a 2019 survey on around 1,500 adults that showed some pretty interesting stats.
People who weren’t financially literate were found to earn lower incomes and save less money than people who actively discussed money when growing up, either at home or at school.
Ready to test your financial knowledge with a quick quiz? Let’s get started!
1. What’s the best way to teach your kids about money management?
A. Giving them an allowance.
B. Letting them use money jars for spending, saving and giving.
C. Taking them to the toy aisle and comparing prices.
D. A, B and C.
2. What’s the credit score range?
A. A to F
B. 300 to 850
C. 0 to 100
D. 200 to 600
3. Define “compound interest”.
A. The figure you’re left with when you multiply the interest rate by the principal amount.
B. Interest on interest.
C. Just another way of saying “simple interest”.
D. When you see your interest rate change over the duration of a loan term.
4. Is the following statement true or false?
When a youngster gets to grips with financial literacy from an early age, they’ll most likely earn and save more when they’re all grown up.
5. What CAN’T budgeting help you with?
A. Paying off your bills on time.
B. Cuttingcrazy spending habits.
C. Achieving your financial goals.
D. Negotiating your salary.
6. Which investment vehicle uses pre-tax dollars to help you grow your money?
A. 401(k)
B. Roth IRA
C. 529 plan
D. 407(b)
7. Which of these budgeting methods is a legit thing?
A. The even-odd method.
B. The snowball effect.
C. The 50/30/20 method.
D. The hexagon method.
8. It’s another true or false question! What’s it to be?
Personal finance is a mandatory course at approximately 87% of high schools across the nation.
9. Enlighten us: what’s a fractional share?
A. Something that requires you to diversify the money you invest.
B. Lets you easily invest small amounts of money.
C. Allows you to pay dividends 50% less often than whole shares.
D. Something that’s only an option for youngsters who want to start investing.
10. What’s the most important factor for having a decent credit score?
A. Your ability to pay your debts in time.
B. The amount of credit you qualify for.
C. Having a good range of credit accounts.
D. Having multiple credit cards.
Ready for your answers?
1. D
2. B
3. B
4. True
5. D
6. A
7. C
8. False
9. B
10. A
If you got 8-10 correct answers: Woah – you’ve got all this money management stuff sussed! Either that, or you cheated.
If you got 4-7 correct answers: You’re on the right track, but you could definitely have more financial knowledge. Luckily, all the info you’d ever want to know is just a Google search away.
If you got 0-3 correct answers: Oh, dear. You definitely need to brush up on the ins and outs of the world of finance. Still, at least you were honest with what you didn’t know – and the only way is up!
Did you surprise yourself with your knowledge?
Please SHARE this with your friends and family to help them get their financial literacy together too!
