Personal Finance Test

Learning the language of money is not that important because you will be able to depend on financial planners to manage your money.

• True

• False

True financial security is achieved when your money begins to generate an income; your money starts working for you.

• True

• False

Which of the following statement best describes how Americans are being outsmarted by banks and other lenders?

• Credit is marketed so well that we desire to have it while completely dismissing the fact that interest rates and fees continue to destroy our financial well-being.

• We are taught that we can buy happiness.

• Buying things on credit has become acceptable in our culture.

• We are driven by consumerism.

Why was the use of credit uncommon prior to 1917?

• Laws prevented lenders from charging high interest rates.

• Borrowing money was generally not socially acceptable.

• Lending money to others was not profitable.

• All of the above

Everyone should have the same financial plan. A budget that works for one person should be sufficient for everyone.

• True

• False

Most Americans today are wealthy and will have financial security when they retire.

• True

• False

Most Americans avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home.

• True

• False

A fee paid by a borrower to the lender for the use of borrowed money.

• Bills

• Interest

When it comes to managing money, success is about ___% knowledge and ___% behavior.

• 50/50

• 60/40

• 80/20

• 20/80

The knowledge and skillset necessary to be an informed consumer and manage finances effectively.

• Financial literacy

• Budgeting