Having a solid understanding of personal finance can help us save more money and avoid debt.
In this article:
- 1. When working for an employer, a paycheck should ___.
- Answer: The total amount minus taxes
- 2. What is the average person's biggest expense?
- Answer: Housing
- 3. What is Interest?
- Answer: Both of the above
- 4. Which of these will not affect a person’s credit score?
- Answer: Interest rates
- 5. What is a bear market?
- Answer: When stock prices are dropping
- 6. Which fee should not be charged to a checking account?
- Answer: Excessive withdrawal fee
- 7. Which statement about saving is true?
- Answer: Saving a consistent amount of money each month can help you prepare for the future
- 8. What does FDIC insured mean?
- Answer: The federal government will repay deposits of up to $250,000 if the bank fails
- 9. What is an insurance premium?
- Answer: The monthly payment required to keep the insurance policy going
- 10. When choosing between two items to purchase, you should always ___.
- Answer: Compare the benefits and costs of each item
- 11. If your income has doubled by 2025, but so has the cost of goods, how much will you be able to buy with your income?
- Answer: The same as today
- 12. Which of the following will appear on a credit report?
- Answer: The last store you shopped at
- 13. Which of these factors will lead to a financial problem?
- Answer: Overspending
- 14. Which of the following payment options allows a person to pre-establish the dollar value available for spending?
- Answer: Stored value card
- 15. If you invest $2,500 and earn 7% each year on the investment, how many years until you have $5,000?
- Answer: 5-15 years
Many of us like to think we are somewhat financially literate. But do you know more than a middle schooler? Let's test your knowledge.
1. When working for an employer, a paycheck should ___.
Source: Freepik
- A) Be the total amount of hourly rate multiplied by the amount of hours worked
- B) The total amount minus some taxes
- C) Half the amount earned without subtracting tax
- D) None of the above
Answer: The total amount minus taxes
Source: Freepik
2. What is the average person's biggest expense?
Source: Freepik
- A) Health care
- B) Food
- C) Transportation
- D) Housing
Answer: Housing
Source: Wikimedia
3. What is Interest?
Source: Freepik
- A) The amount earned by keeping money in a savings account
- B) An extra percentage paid back on top of a loan
- C) None of the above
- D) Both of the above
Answer: Both of the above
Source: Freepik
4. Which of these will not affect a person’s credit score?
Source: Freepik
- A) New credit
- B) Payment history
- C) Interest rates
- D) Credit mix
Answer: Interest rates
Source: Freepik
5. What is a bear market?
Source: Freepik
- A) When stock prices are dropping
- B) When stock prices are rising
- C) When investors are acting aggressively
- D) When investors pay no attention to the market
Answer: When stock prices are dropping
Source: Freepik
6. Which fee should not be charged to a checking account?
Source: Freepik
- A) ATM fee
- B) Overdraft fee
- C) Excessive withdrawal fee
- D) Minimum balance fee
Answer: Excessive withdrawal fee
Source: Freepik
7. Which statement about saving is true?
Source: Freepik
- A) Aim to save large amounts of money occasionally for your retirement
- B) Saving a consistent amount of money each month can help you prepare for the future
- C) Expenses can be considered savings if you get a discount on the item
- D) Don’t worry about saving
Answer: Saving a consistent amount of money each month can help you prepare for the future
Source: Freepik
8. What does FDIC insured mean?
Source: Freepik
- A) The back will pay customers $250,000 if they close down
- B) The federal government will repay deposits of up to $250,000 if the bank fails
- C) The bank offers insurance against fires and floods for up to $250,000
- D) The bank offers up $250,000 should a home get destroyed in an earthquake
Answer: The federal government will repay deposits of up to $250,000 if the bank fails
Source: Freepik
9. What is an insurance premium?
Source: Freepik
- A) The amount an insurance company pays out if a customer files a claim
- B) The amount a person pays out of their own pocket before they can claim insurance
- C) The monthly payment required to keep the insurance policy going
- D) A large down payment before the insurance policy begins
Answer: The monthly payment required to keep the insurance policy going
Source: Freepik
10. When choosing between two items to purchase, you should always ___.
Source: Freepik
- A) Choose the cheaper of the two
- B) Opt for the more expensive item
- C) Compare the benefits and costs of each item
- D) None of the above
Answer: Compare the benefits and costs of each item
Source: Freepik
11. If your income has doubled by 2025, but so has the cost of goods, how much will you be able to buy with your income?
Source: Freepik
- A) Less than today
- B) Twice as much as today
- C) The same as today
- D) Four times as much as today
Answer: The same as today
Source: Freepik
12. Which of the following will appear on a credit report?
Source: Freepik
- A) The last store you shopped at
- B) Your family history
- C) Your financial goals
- D) A late payment
Answer: The last store you shopped at
Source: Freepik
13. Which of these factors will lead to a financial problem?
Source: Freepik
- A) Categorizing your expenses into separate funds
- B) Overspending
- C) Understanding your positive and negative spending habits
- D) Taking values into account when determining goals
Answer: Overspending
Source: Freepik
14. Which of the following payment options allows a person to pre-establish the dollar value available for spending?
Source: Freepik
- A) Chip card
- B) Smart card
- C) Stored value card
- D) Debit card
Answer: Stored value card
Source: Freepik
15. If you invest $2,500 and earn 7% each year on the investment, how many years until you have $5,000?
Source: Freepik
- A) 0-5 years
- B) 5-15 years
- C) 15-45 years
- D) 45+ years
Answer: 5-15 years
Source: Freepik