Financial Literacy Quiz

Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn interest?

• Savings account

• Checking account

Which of the following is an effective strategy for personal saving?

• Wait until the end of the month and save whatever is left in your checking account

• Save a certain percentage of each paycheck and deposit it directly into a savings account

• Cover all of your wants and needs and save whatever is left over

• Take out a payday loan so you can save before you receive your paycheck

All of the following are true about prepaid cards EXCEPT:

• Prepaid cards typically include a lot of fees

• Prepaid cards are usually accepted anywhere that debit and credit cards are accepted

• Prepaid cards are a great way to build credit

You are developing a savings plan using short-, medium-, and long-term goals to motivate you. Which represents possible savings goals from short to long-term?

• A new cell phone, dinner with friends this weekend, a new bike

• Retirement, college tuition, a vacation

• Retirement, house down payment, college tuition

• A new cell phone, college tuition, house down payment

Fill in the blanks with the correct responses. If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward __________, 30% of your monthly income toward __________, and 20% of your monthly income toward __________.

• a. Needs, wants, savings

• b. Savings, needs, wants

• c. Needs, savings, wants

• d. Wants, needs, savings

Which represents the BEST time to start saving for your retirement?

• a. As soon as you have your first full-time job

• b. Right after you pay off your student loans

• c. Once you are debt-free, including paying off all credit cards, auto loans, and your mortgage

Which of the following statements is TRUE?

• a. The majority of Americans have an adequate emergency fund

• b. The majority of Americans have sufficient amounts of money saved for retirement

• c. The majority of Americans have an adequate emergency fund, but do NOT have sufficient amounts of money saved for retirement

• d. The majority of Americans do NOT have an adequate emergency fund and do NOT have sufficient amounts of money saved for retirement

Experts recommend that you accumulate enough to cover 3 to 6 ___ of expenses in your emergency fund.

• Days

• Weeks

• Months

• Years

Three of these statements best describe a checking account. Which statement best describes a savings account?

• This account offers a convenient way to pay bills and access cash from an ATM

• This account pays you interest on money you have put away for later to help your money grow

• This account is automatically debited when you use a debit card

• This account typically allows an unlimited number of transactions per month

You overhear your Aunt Tina tell your mom that she, her husband, and their kids are 'living paycheck to paycheck.' What does Aunt Tina mean by that?

• Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods

• Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses

• Aunt Tina and her family have high paying jobs and don't worry much about money