Pre-Foundation Financial Literacy

QuestionMany 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? Select ALL that apply.

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

• Setting goals provides them with direction.

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

Which of the following states the five important components of a good financial goal?

• General, revised, active, safe, sound.

• Written, clear timeline, research-based, influenced by family, influenced by friends.

• Specific, measurable, achievable, realistic, time-driven.

• None of the above.

How can automating my finances save me time, protect my credit, and earn me extra money? Select ALL that apply.

• Having bills paid automatically will reduce time spent on accounting; paying bills on time protects credit; and setting up direct deposit from your employer means you will earn maximum interest each month.

• Automating your finances cannot protect your credit or help you earn money.

• Automating your finances organizes all your accounts in one place that can easily be reviewed and updated online.

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 automatic bill-pay, set up automatic transfers to your savings account, and track all your finances on the mint.com website.

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

• None of the above.

Why would I want to improve my credit score?

• To save money when purchasing a car with a loan.

• To earn more interest on investments.

• To help you get a job, because many employers check their prospective employees’ credit.

From the following list, choose the two best suggestions for building and maintaining a good credit rating.

• Have money in savings and protect against identity theft.

• Keep your debt low and pay your bills on time.

• Make safe investments and set clear financial goals

• None of the above

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

• Insurance

• Mutual funds

• Retirement plans

• None of the above

If I do NOT have a written long-term financial plan, which of the following might I experience?

• You might run out of money after you retire, and be forced to go back to work when you’re old.

• Being unable to afford fun activities you want to enjoy.

• Having the freedom to live the lifestyle you want.

Before I begin investing, what systems should I have in place?

• Expert-level knowledge about any investment you’re considering.

• A trusted team of professionals who can give you advice.A trusted team of professionals who can give you advice.

• Risk capital (money you can afford to lose).

How do I begin the process of creating a long-term financial plan?

• Starting thinking about and writing down goals for your career, finances, and life.

• Start investing immediately.

• Open a savings account.