How financially savvy are you? Take this 13-question quiz to find out!
Studies show that most adults could benefit from better financial knowledge
Think you have a good handle on your money? Financial literacy plays a crucial role in making smart money decisions, yet studies show that most adults could benefit from better financial knowledge. Test your financial IQ with these 13 essential questions!
1. How much should you save for emergencies?
A) One month’s expenses
B) Two months’ expenses
C) Three to six months’ expenses
2. What percentage of your income should go to housing costs?
A) 15%
B) 20%
C) 28%
D) 40%
3. What debt should you pay off first?
A) Car loan
B) Credit card
C) The debt with the highest interest rate
4. What is net income?
A) Money left after payroll deductions
B) Money left after paying bills
5. How much should you save for retirement?
A) 5%
B) 10%
C) 15%
D) 20%
6. What’s considered a ‘very good’ credit score?
A) 580
B) 665
C) 700
D) 740
7. Which statement about credit scores is false?
A) Scores impact loan rates
B) Checking your score often hurts it
C) Scores affect car insurance rates
8. Which of these impacts your credit score?
A) Payment history
B) Length of credit history
C) Total debt
D) All of the above
9. What’s the 50/30/20 budget rule?
A) Save 50%, pay bills with 30%, invest 20%
B) Spend 50% on needs, 30% on wants, 20% on savings/debt
10. If you save Dh1,000 at 2% interest for 5 years, how much do you have?
A) Less than Dh1,000
B) Dh1,020
C) Dh1,100
D) Slightly more than Dh1,100
11. How much of your working salary should you aim to have after retirement?
A) 30%
B) 50%
C) 80%
D) 110%
12. What is credit card APR?
A) The interest rate charged yearly
B) The annual fee
C) The late payment fee
13. If interest rates rise, what happens?
A) Borrowing costs increase
B) Loan payments decrease
C) Housing prices go up
D) Inflation drops
Answers:
C – Three to six months’ expenses.
C – 28% of income.
C – The debt with the highest interest rate.
A – Money left after payroll deductions.
C – 15% of your income.
D – 740+ is considered very good.
B – Checking your credit score doesn’t harm it.
D – All of the above impact your credit score.
B – Spend 50% on needs, 30% on wants, 20% on savings/debt.
D – Slightly more than Dh1,100 due to compounding.
C – 80% of your final salary.
A – The interest rate charged yearly.
A – Borrowing costs increase.
How did you score?
· 10-13 Correct: You’re financially savvy! Keep up the great work.
· 6-9 Correct: Not bad, but there's room for improvement.
· 0-5 Correct: Time to brush up on your financial literacy!
Regardless of your score, the key to financial success is continuous learning and smart money management!
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