Test Your Money IQ! How much do you know about your own finances?

Do you know how much money is in your checking account?

No clue

I have a rough idea

Yes, give or take a few bucks

I know the exact amount

If you pay the minimum amount due on your credit card each month, you won't have to pay interest.

True

False

Are contributions to a traditional 401(k) account deducted from your paycheck before or after taxes?

Before

After

What type of bank currently offers the highest rate of return on savings accounts?

Traditional big bank

Local bank

Credit union

Online bank

What is compound interest?

The process in which your annual credit card interest is calculated

The process in which the value of money you invest or put into savings increases over time.

The interest you pay to borrow money from the bank.

How much debt do you have?

A lot, but I don't know exactly how much

I have a rough estimate

I know the total amount, maybe not down to the dollar or cent

I know exactly how much debt I have

The best way to pay off credit card debt is to start with the card that has the highest interest rate.

True

False

What are the 2 BEST ways to handle your credit cards to make them beneficial to your financial life?

Make sure to pay the minimum each month

Only charge what I can pay off in full down to a balance of zero each month

Pay the full balance before the due date

Pay the full balance before the closing date

What is the minimum credit score typically required to get the best interest rates?

680

760

800

740

How would you pay for a $900 unexpected expense? (Like a car repair or medial bill?

With a credit card

With emergency savings

I would borrow from my 401(k)

With my long-term savings that I can pay back later

I would put it off until I could pay it

How much do you have saved for emergencies?

Nothing

I have a 401(k) I would use

3-6 months worth of living expenses

About $1,000 for unexpected expenses

Do you know where your money goes each month?

Not really

I usually check toward the end of the month or pay period

Yes, I have a budget for each area of spending & track it throughout the month

I have a budget and keep track of it in my head

What's the best way to set and reach a savings goal? (maybe for a vacation, down payment, car purchase etc.)

Set aside 10% of my income every month toward the goal

Set a deadline for when you want to reach the goal and figure out how much to save each month

Set a deadline and put money away whenever you can

Take out a personal loan

What's the difference between a checking account and savings account?

Nothing

A checking account comes with a debit card

A savings account is set up to earn you interest on your money

A checking account is a better place to keep all your cash

Which of the following is not part of your basic financial security plan?

Saving for retirement

Paying off debt

Saving for kids' college education

Saving for emergencies

What's the maximum percentage of your total available credit should you be using at any one time?

10%

30%

It doesn't matter.

20%

Test Your Money IQ! How much do you know about your own finances?

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