Financial Literacy

Financial Literacy: What is it?

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Poll

Do Any of these sound like you?

• Never Follows a Budget

• Doesn’t Plan for Emergencies

• Does Not Set Financial Goals

• Spends Money as Soon as They Get It

• Lacks a Clear Financial Plan

Multiple Choice

What is income?

• Amount paid in taxes each bi-weekly paycheck.

• The money you earn through work or investments.

• it is the term for what you spend on entertainment

• it is the term for investing money in the stock market

Multiple Choice

Do you have to make a lot of money to be financially literate?

• Yes

• No

Multiple Choice

Expenses are described as which of the following

• the taxes you pay on your salary

• the money going out - what you pay from your salary or for a good or service

• another term for investing in the stock market

• another term for international markets

Multiple Choice

What is the one financial activity every person should do with their money and investments?

• spend it recklessly

• spend it all at once

• create a budget to follow

• give it all to charity

Multiple Choice

Which of the following rules should individuals follow to achieve a good balance of their finances?

• 80/10/10- 80% towards housing/bills, 10% towards saving and 10% towards entertainment

• 50/20/30 - 50% towards Housing/bills, 30% towards financial debt/savings and 20% towards entertainment

• 50/25/25 - 50% towards entertainment, 25% towards housing/bills and 25% savings

• 60/40/20: 60% savings, 40% housing/bills and 20% entertainment

Multiple Choice

Assets are described as which of the following

• the things you own - house, car, savings

• taxes you pay on luxury items

• payroll taxes

• another term for rent

Multiple Choice

The suggestion is that even high school students should start doing which of the following to set a future of good financial habits?

• buying a house right out of high school

• investing in risky stocks

• purchasing a car right out of high school

• saving $5 to $10 a week; getting into the habit of doing this

Multiple Choice

Is it a smart move to make your savings account a fixed expense which comes directly from your checking account into your savings once you are paid?

• yes

• no

Multiple Choice

Investing is smart however, you should do it in a smart way. If you purchase stock in a company which of the following is true?

• you are purchasing a mutual fund

• you are purchasing the entire company

• you are purchasing a piece of that company with the hopes of making a return on your investment

• you are now a member of the Securities and Exchange Commission

Multiple Choice

A mutual fund is which of the following

• a savings account for a younger person

• a diverse fund which pulls investments from many different areas to make money

• a stock company

• a company which funds new projects

Multiple Choice

The best investment for your money over time is in an account in which you have compound interest. This means you are earning interest on your initial principal and all the interest you have previously gained, making your investment grow faster.

• True

• False

Multiple Choice

With regular interest on an account it will double in the amount invested in 23 years; but if you have a 7% return on your investment, like the stock market, how long will it take to double your investment

• 1 year

• 5 years

• 10 years

• 30 years

Multiple Choice

What are liabilities?

• property you own

• bank accounts

• assets

• debts you owe

Multiple Choice

Which of the following is the better choice when taking on a debt through credit

• purchasing an asset such as a house, which will grow in value and build you equity

• purchasing something you consume, such as entertainment or a night out for pizza, and charging that on your credit card; it is gone and you have nothing to show for it

Multiple Choice

Is it smart to have excessive debt on a credit card and make it fixed, monthly expense?

• Yes, at least you know how much you will be paying on that credit card each month

• No, as you will never pay off the debt and you will keep adding to the credit card amount.

Multiple Choice

A person with a modest income can enjoy financial success.

• True

• False

Open Ended

What does the term “financial literacy” mean to you?