Personal Finance Quiz

What percentage of Americans have less than $1,000 saved for an emergency?

• A. 45%

• B. 55%

• C. 65%

• D. 75%

What limits your freedom with money?

• A. Investing in the stock market

• B. Paying for things in your past

• C. Saving for retirement

• D. Having a high-paying job

What should you do once you have a $500 emergency fund?

• A. Start putting it toward debt

• B. Invest it in the stock market to grow your money

• C. Save it until you have an emergency

• D. Use the money to pay for health insurance

When should you start investing money?

• A. Once you have a fully funded emergency fund

• B. When the stock market is performing really well

• C. As soon as you have extra cash

• D. Once you're out of college, living debt-free, and have 3-6 months of living expenses saved

What is the first step you should take when you want to make a large purchase?

• A. Ask your parents to loan you the money with low interest

• B. Get a new credit card

• C. Decide how much you'll need to save and the time frame you want to save it in

• D. Sell something and use the proceeds

Why do some accounts, like savings accounts at your local bank, earn interest?

• A. Because you deposit money, adding to your principal each month

• B. Because the bank pays you to use your money

• C. Because those accounts always have great interest rates

• D. Because of inflation

If you really want to save money, what should you do?

• A. Fly economy class

• B. Live on less than you make

• C. Invest in a Roth IRA

• D. Have a financial advisor

Where is the only place you should keep your emergency fund money?

• A. A savings account or money market account

• B. A safe in your bedroom

• C. A Roth IRA

• D. An envelope in a safe place

What are the main reasons for saving your hard-earned money?

• A. Emergencies, large purchases, and wealth building

• B. Paying for your dream home, buying your dream car, and going on your dream vacation

• C. Buying gifts, donating to charities, and building up a college fund for your kids

• D. Investing, indulging, and influencing

What is the goal of an emergency fund?

• A. To pay for large purchases

• B. To save for your children's college expenses

• C. To have cash on hand for unexpected events

• D. To pay for health insurance