Financial Literacy Quiz

What percentage of Americans live paycheck to paycheck according to the video?

• 80%

• 75%

• 62%

• 50%

What is the recommended amount of living expenses to save in an emergency fund?

• One month

• Two months

• Three months

• Six months

What is a key characteristic of a spender?

• Invests all their money

• Prefers saving over spending

• Enjoys spending money on themselves and others

• Avoids making any purchases

What question should a saver ask before making a purchase?

• Will this impress others?

• Is this the most expensive option?

• Do I really need this?

• Is this item on sale?

What is a P&L statement used for in personal finance?

• Tracking investments

• Tracking both income and expenses

• Tracking expenses only

• Tracking income only

What is the benefit of tracking personal expenses for 90 days?

• To increase your income

• To understand your spending habits

• To find out how much you earn

• To reduce your taxes

What is a common way most people produce income?

• Investing in stocks

• Inheriting money

• Through labor, such as a 9-to-5 job

• Winning the lottery

What is a high-value skill mentioned in the video?

• Gardening

• Sales

• Cooking

• Driving

What is the advantage of starting to invest early?

• More time for compound growth

• Less need for financial planning

• Higher risk

• Immediate high returns

In the example given, who ends up with more money by age 65?

• Neither, they both lose money

• Investor A

• Investor B

• Both have the same amount