Could You Pass This Financial Literacy Quiz?
I came across an article recently that said “94% of Americans cannot pass a basic financial literacy quiz.” Obviously that’s not good… but I wasn’t surprised either!
Most Americans are not taught basic money concepts in school or at home. Often, children grow up learning bad money habits from their parents. And most Americans grow up without a basic knowledge of how interest works for and against you, what a stock is, what a bond is, etc.
So I thought it would be fun to test your financial literacy. I found a financial literacy test online from the FINRA Investor Education Foundation. It’s their National Financial Capability Study, and it has just 5 questions. The question topics range from basic principles on interest, diversification, how debt works, and basic bond concepts. Here’s a link to the quiz >>>https://www.usfinancialcapability.org/submit_quiz.php
Each day on the One Minute Retirement Tip podcast this week, I’ll go through each question and answer on the quiz, and we’ll discuss the results, and why it’s important to know the RIGHT answer to each question!
✅ Financial Literacy Quiz Question #1 – Compound Interest
✅ Financial Literacy Quiz Question #2 – Inflation
✅ Financial Literacy Quiz Question #3 – Interest Rates & Bonds
✅ Financial Literacy Quiz Question #4 – Mortgage Interest
✅ Financial Literacy Quiz Question #5 – Diversification
To learn more about what you should do before taking IRA withdrawals, be sure to listen to this week’s intro episode and subscribe to the One Minute Retirement Tip wherever you listen to podcasts.