Personal Finance Quiz

Juan saved $1,000. Which account type offers the highest interest if he doesn't need the money for years?

• Regular savings account

• Money Market account

• Checking account

• Certificate of Deposit

Which is an effective personal saving strategy?

• 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

Your friend pays you with a check, and you lose it before cashing. What should you do first?

• Write a new check for yourself

• There’s nothing you can do. The money is lost.

• Contact your friend to issue a stop payment

• Contact your bank to issue a stop payment

All of the following about bank accounts are true EXCEPT...

• If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails

• Many banks pay interest on the money you deposit into your savings account

• Historically, savings accounts earn higher returns than investments in the stock market

• Money in a checking account is usually easy to access via ATM, debit card or check

All of the following are true about prepaid cards EXCEPT...

• Prepaid cards typically include a lot of fees

• Prepaid cards are useful for unbanked people to make online purchases

• Prepaid cards are a great way to build credit

• Prepaid cards are accepted where debit and credit cards are accepted

Which represents possible goals from short-term to long-term? Save for...

• Retirement, a house down payment, college tuition

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

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

• Retirement, college tuition, a vacation

If you follow the 50-30-20 rule of budgeting, you'll allocate 50% of your income to ______________, 30% to ____________, and 20% to _____________.

• Needs, wants, savings

• Wants, needs, investments

• Savings, needs, wants

• Investments, savings, needs

When is the BEST time to start saving for retirement?

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

• Right after you pay off your student loans

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

• At age 45, so you have exactly 20 years until retirement

Which statement is TRUE?

• The majority of Americans have an adequate emergency fund

• The majority of Americans have sufficient money saved for retirement

• Americans have an emergency fund, but not enough for retirement

• Americans lack both an emergency fund and retirement savings

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

• Days

• Weeks

• Months

• Years