Carrie Schwab-Pomerantz on Personal Finance in Challenging Times

The video discusses financial literacy, emphasizing the importance of budgeting, saving, and investing. Carrie shares her personal journey and mission to improve financial literacy. Key topics include emergency funds, retirement planning, and investment strategies. The video also covers the impact of COVID-19 on finances, especially for women, and offers practical budgeting tips. It concludes with recommended resources for further learning.

What is one of the key social issues linked to a lack of financial literacy?

• Cultural diversity

• Environmental pollution

• Poverty

• Technological advancement

Which of the following is NOT a component of financial literacy?

• Ignoring debt

• Investing in your future

• Living below your means

• Recognizing scams

What is the primary goal of financial literacy according to the speaker?

• To invest only in real estate

• To avoid all forms of debt

• To have knowledge and access to financial tools

• To become wealthy quickly

How many months of essential expenditures should an emergency fund ideally cover?

• Six to twelve months

• Three to six months

• One to two months

• Twelve to eighteen months

When should you consider dipping into your emergency fund?

• To pay for a vacation

• To invest in stocks

• During a financial emergency

• To buy luxury items

What is a recommended strategy to avoid mindless spending?

• Trying a cash diet for a week

• Using credit cards for all purchases

• Shopping online frequently

• Avoiding budgeting altogether

What is a suggested method for managing a budget during uncertain times?

• Relying solely on credit cards

• Ignoring financial statements

• Tracking all expenditures and categorizing them

• Spending more on non-essentials

What percentage of pre-tax income should ideally be spent on mortgage debt?

• 10%

• 75%

• 50%

• 28%

What is a key benefit of dollar-cost averaging in a 401(k)?

• It guarantees high returns

• It eliminates all investment risks

• It allows for immediate access to funds

• It averages out the cost of investments over time

What should be prioritized over buying a house according to the speaker?

• Retirement savings

• Purchasing a new car

• Investing in stocks

• Paying off student loans