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WorksheetsUVA Financial Literacy Presentation
Total questions: 21
Worksheet time: 11mins
Describe your confidence as it relates to your personal financial literacy
VERY CONFIDENT
CONFIDENT
SLIGHTLY CONFIDENT
NONE
What percentage of American households run out of money during retirement?
40%
28%
65%
78%
What percentage of people have no emergency savings?
5%
10%
20%
40%
What percentage of parents are uncomfortable discussing money with their children?
17%
59%
47%
29%
What is the average amount of student debt per borrower?
$100,000
$48,000
$30,000
$10,000
Which of the following are NOT considered a primary area of financial planning?
Investments
Risk Management
Credit Score Cultivation
Tax Planning
What percentage of your gross income should you save for retirement and future goals?
20%
10%
5%
40%
Sound financial planning correlates....
Only with defensive strategies like life insurance and income protection
With both offensive and defensive strategies
Only with offensive strategies like saving/investing
With finding tax efficiencies and IRS loopholes for the wealthy
At what age can you start to pull money from a Traditional 401(k) without incurring a 10% penalty?
65
59 1/2
72
50 1/2
What is the benefit of a Roth IRA?
You can pull the basis out at any point without penalty
You will not have to pay taxes when taking distributions
It reduces your Adjusted Gross Income (AGI)
They grow tax-deferred
Which of the following are commonly used to provide retirement income?
401(k)
Social Security
Roth IRA
Pensions
Which of these are considered good debt?
Student Debt
Mortgage
Personal Loans
Credit Card Debt
What is the 5% rule?
Keep all credit card utilization rates under 5%
Every 5% increase in income should correlate to an additional 3% in savings
Make minimum payments on debts with interest rates under 5%
Debt to income ratio should always be at or below 5%
What is PMI and how can you avoid it?
Private Mortgage Insurance; making a down payment of 20%+ on a house
Personal Monetary Interest; keeping an established minimum in your savings account
Post-Market Inverse; purchase bonds as markets take a fast upswing following a recession
Prime Monetary Inflation; borrowing at an interest rate at or below the federal reserve rate.
Ideally, how many months' worth of expenses should you keep in an emergency fund?
12 months
6 months
3 months
2 months
What is the typical amount of an employer sponsored long term disability plan?
50%-60%
20%-30%
75%-85%
100%
On average, term life insurance policies pay out ______ percent of the time while permanent policies pay out _____ percent of the time.
5%; 100%
50%; 50%
75%; 100%
25%; 75%
What is the BEST reason to start investing at a young age?
You're likely in the lowest tax bracket of your life
Younger people have lower expenses, more left to invest
Length of ownership will dictate future investment fees, longer = lower
To benefit from compounding interest
Which of the following has historically had the highest rate of return over long periods of time?
Stocks
High-Yield Savings
CD's
Bonds
Which of the following strategies has shown the highest return over a period of years?
Buying and holding onto a varied set of stocks, ignoring short-run fluctuations
Avoiding stocks altogether by keeping money in federally insured bank accounts
Moving frequently in and out of the stock market to avoid downturns and exploit upturns
Using previous history of performance in order to select future stocks
Describe your confidence as it relates to your personal financial literacy
VERY CONFIDENT
CONFIDENT
SLIGHTLY CONFIDENT
NONE
