Do You Know More About Personal Finance Than a Middle Schooler?
By: Ben Campbell |
Published: Mar 31, 2024
Having a solid understanding of personal finance can help us save more money and avoid debt.
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 ___.
- 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
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![A man is pictured opening a small envelope at his kitchen table](https://images.savvydime.com/2024/03/9c023616-screenshot-2024-03-25-221403.jpg)
Source: Freepik
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Answer: The total amount minus taxes
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![A man is pictured looking over his latest payslip from work](https://images.savvydime.com/2024/03/fc9701c7-screenshot-2024-03-25-221453.jpg)
Source: Freepik
2. What is the average person's biggest expense?
- A) Health care
- B) Food
- C) Transportation
- D) Housing
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![An image of a woman paying for a coffee with her debit card](https://images.savvydime.com/2024/03/d57c54d3-screenshot-2024-03-25-221902.jpg)
Source: Freepik
Answer: Housing
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![An image of a house pictured in Jackson, Florida](https://images.savvydime.com/2024/03/d4d152bc-screenshot-2024-03-25-221931.jpg)
Source: Wikimedia
3. What is Interest?
- 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
![An image of a man dressed in a navy suit as he starts at figures on a monitor](https://images.savvydime.com/2024/03/9cbf2739-screenshot-2024-03-25-222004.jpg)
Source: Freepik
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Answer: Both of the above
![An image of a financial advisor seated at a table with various figures on paper](https://images.savvydime.com/2024/03/370b66a5-screenshot-2024-03-25-222035.jpg)
Source: Freepik
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4. Which of these will not affect a person’s credit score?
- A) New credit
- B) Payment history
- C) Interest rates
- D) Credit mix
![A blonde woman is pictured using her credit card to make a payment](https://images.savvydime.com/2024/03/59bc324d-screenshot-2024-03-25-222052.jpg)
Source: Freepik
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Answer: Interest rates
![An image of a woman placing her credit card into a small purse](https://images.savvydime.com/2024/03/c7e8eae0-screenshot-2024-03-25-222106.jpg)
Source: Freepik
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5. What is a bear market?
- 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
![An image of a bear wandering through a forested region](https://images.savvydime.com/2024/03/fa71f696-screenshot-2024-03-25-222121.jpg)
Source: Freepik
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Answer: When stock prices are dropping
![An image of a man checking stock prices on his laptop](https://images.savvydime.com/2024/03/c5b7bbfd-screenshot-2024-03-25-222140.jpg)
Source: Freepik
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6. Which fee should not be charged to a checking account?
- A) ATM fee
- B) Overdraft fee
- C) Excessive withdrawal fee
- D) Minimum balance fee
![An image of a woman using an ATM at her local bank](https://images.savvydime.com/2024/03/9bd682cc-screenshot-2024-03-25-222157.jpg)
Source: Freepik
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Answer: Excessive withdrawal fee
![A blonde woman in a white shirt is pictured using the ATM](https://images.savvydime.com/2024/03/59596379-screenshot-2024-03-25-222210.jpg)
Source: Freepik
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7. Which statement about saving is true?
- 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
![An image of a savings jar with several dollar bills inside](https://images.savvydime.com/2024/03/39e8cb35-screenshot-2024-03-25-222222.jpg)
Source: Freepik
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Answer: Saving a consistent amount of money each month can help you prepare for the future
![An image of a woman holding a large jar filled with $100 bills](https://images.savvydime.com/2024/03/45a9e67e-screenshot-2024-03-25-222241.jpg)
Source: Freepik
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8. What does FDIC insured mean?
- 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
![An image of a man and a woman speaking with an insurance broker](https://images.savvydime.com/2024/03/d9d129d6-screenshot-2024-03-25-222307.jpg)
Source: Freepik
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Answer: The federal government will repay deposits of up to $250,000 if the bank fails
![An image taken outside of a federal bank in the United States of America](https://images.savvydime.com/2024/03/8d021cbe-screenshot-2024-03-25-222337.jpg)
Source: Freepik
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9. What is an insurance premium?
- 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
![An image of an elderly couple speaking with their insurance provider at his office](https://images.savvydime.com/2024/03/f0cca7a4-screenshot-2024-03-25-222351.jpg)
Source: Freepik
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Answer: The monthly payment required to keep the insurance policy going
![A young couple is pictured signing insurance forms with their local broker](https://images.savvydime.com/2024/03/973b6893-screenshot-2024-03-25-222418.jpg)
Source: Freepik
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10. When choosing between two items to purchase, you should always ___.
- 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
![An image of a woman as she stares through the window of a store on the street](https://images.savvydime.com/2024/03/c0f85250-screenshot-2024-03-25-222438.jpg)
Source: Freepik
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Answer: Compare the benefits and costs of each item
![A couple are pictured looking over various couch designs at a retail store](https://images.savvydime.com/2024/03/f8f02c74-screenshot-2024-03-25-222454.jpg)
Source: Freepik
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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?
- A) Less than today
- B) Twice as much as today
- C) The same as today
- D) Four times as much as today
![An image of a couple shopping for groceries at their local supermarket](https://images.savvydime.com/2024/03/e058cfba-screenshot-2024-03-25-222542.jpg)
Source: Freepik
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Answer: The same as today
![A couple dressed in blue shirts are pictured shopping for dry goods at a supermarket](https://images.savvydime.com/2024/03/46782c14-screenshot-2024-03-25-222559.jpg)
Source: Freepik
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12. Which of the following will appear on a credit report?
- A) The last store you shopped at
- B) Your family history
- C) Your financial goals
- D) A late payment
![An image of a man dressed in a checkered shirt looking over a credit report](https://images.savvydime.com/2024/03/91683bd6-screenshot-2024-03-25-222620.jpg)
Source: Freepik
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Answer: The last store you shopped at
![A man is pictured shopping for a new coat at a clothing store](https://images.savvydime.com/2024/03/2b478213-screenshot-2024-03-25-222638.jpg)
Source: Freepik
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13. Which of these factors will lead to a financial problem?
- 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
![An image of a man looking over his financial records at a desk](https://images.savvydime.com/2024/03/4a8e90ba-screenshot-2024-03-25-222702.jpg)
Source: Freepik
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Answer: Overspending
![A group of women are pictured posing for a selfie during a shopping trip](https://images.savvydime.com/2024/03/9cbc47da-screenshot-2024-03-25-222718.jpg)
Source: Freepik
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14. Which of the following payment options allows a person to pre-establish the dollar value available for spending?
- A) Chip card
- B) Smart card
- C) Stored value card
- D) Debit card
![A man is pictured using his credit card to make a purchase at a store](https://images.savvydime.com/2024/03/ce8ebfed-screenshot-2024-03-25-222739.jpg)
Source: Freepik
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Answer: Stored value card
![A woman in a grey jacket is pictured holding up a prepaid card on the street](https://images.savvydime.com/2024/03/58ed6d50-screenshot-2024-03-25-222806.jpg)
Source: Freepik
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15. If you invest $2,500 and earn 7% each year on the investment, how many years until you have $5,000?
- A) 0-5 years
- B) 5-15 years
- C) 15-45 years
- D) 45+ years
![Two investment bankers are pictured seated at a small table as they work](https://images.savvydime.com/2024/03/812fc897-screenshot-2024-03-25-222820.jpg)
Source: Freepik
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Answer: 5-15 years
![An image of a calendar hanging on a white wall within a person's home](https://images.savvydime.com/2024/03/45fcd2f7-screenshot-2024-03-25-222839.jpg)
Source: Freepik
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