National Financial Literacy Test

Choose the answer that best describes how to automate your finances.

• Keep track of all the bills you pay on a spreadsheet, have a written budget, and set up an account with a bank or credit union.

• Have your employer direct deposit your paycheck, set up auotmatic bill-pay, set up automatic transfers to your savings account, and track all your finances online.

• Have all the companies you owe deduct their monthly payments directly from your checking account.

• None of the above.

If I invest $100 per month starting at age 21, and that money earns a 7% annual return, how much will I have after 70 years?

• $138,957

• Between $150,000 and $225,000 depending on life expectancy

• More than 1.5 million dollars

• None of the above

Why should I develop a professional resume and practice my interview skills?

• To save time and get the job you want instead of wasting time unemployed or in a dead-end job.

• To receive the salary at the upper end of the range of your position.

• So you can take the first job offer presented to you.

• Both "a" and "b".

What is the first thing I should do before searching for a job in my chosen career path?

• Complete a clean, professional resume.

• Think about what you enjoy doing, the industries you're attracted to, and your strengths.

• Earn a college degree

• None of the above

Many celebrities, professional athletes, and entrepreneurs- people who can afford to live their desired lifestyles- have goals for their personal and professional achievements. Why do these successful people set goals?

• Goal-setting allows them to measure progress towards accomplishments or lifestyle changes they desire.

• Setting goals provides them with direction.

• Goal-setting gives them the opportunity to show off to others.

• If you set a goal, you will reach your desired lifestyle.

Which of the following steps should I take now to be preapred to invest and get my money growing for me?

• Start saving towards an emergency fund equal to 6 months of your bills.

• Start learning more about investing and potential investments.

• Start looking for a team of trusted advisors and mentors.

• Start putting money into the stock market and seeing what happens.

What are the benefits of networking?

• Networking provides a source for future jobs.

• It allows you to meet new friends with similar interests.

• To create opportunities to serve others.

• To find a relationship.

How can understanding risk management topics help me in everyday life?

• It can safeguard your credit and protect you from lawsuits.

• You can avoid large medical bills incurred because you have no medical insurance.

• Understanding risk management helps you evaluate the risks involved with situations you might face while driving, hanging out with friends, or being adventurous.

• Helps you understand that the bigger the risk the bigger the reward.

Which of the following financial products can help you lower your personal risk?

• Insurance

• Mutual funds

• 401K and retirement plans

• None of the above

What steps can I take now to increase the chances of getting the job I want?

• Network with others working in the field.

• Build your skill set by doing volunteer work in your chosen area.

• Practice your job interviewing skills.

• Call places that are similar to what you're looking for and ask if they're hiring.