CashCourse

Quiz Me About My Financial Smarts

1. What's the millionaire's secret?

Go to business school

Pick a stock market winner

Live within your means and invest the rest

2. How much money should you keep in your emergency fund?

3% of your current salary

The equivalent of 3 months' living expenses

Nothing—you can use your credit card in emergencies

3. How can you tell if your identity has been stolen?

You receive bills for things you never purchased

You receive lots of spam email

You receive mail addressed to someone else

4. If you're trying to build good credit, what is the most important thing you can do?

Avoid credit cards and loans altogether

Maintain a balance on your credit cards and pay the minimum every month

Pay your bills on time

5. If you have a $3,000 balance on a credit card that charges 18% annually, how long would it take you to pay off the balance, assuming you made the minimum payment of $60 every month?

2 ½ years

Almost 5 years

Almost 8 years

6. Your credit score can affect your ability to:

Be approved for an apartment

Get a competitive rate on auto insurance

Both of the above

7. What's the main difference between debit cards and credit cards?

Debit cards charge a higher interest rate than credit cards

Debit cards work like a check while credit cards work like a loan

They're really the same thing and can be used interchangeably

8. What's the best way to buy a flat-screen TV?

Buy it on a rent-to-own plan

Buy it on a credit card and pay it off over time

Buy it on a credit card and pay in full when the bill comes due

9. When can you start putting money into a retirement account?

As soon as you turn 21

As soon as you retire

As soon as you begin earning income

10. If, on your 21st birthday, you begin putting $100 every month in a retirement account that earns 8% annually, how much would you have by the time you turn 65?

$52,800

$154,000

$462,600

Next >>