Establishing A Baseline - A Financial Literacy Quiz

Informed people “know what they don’t know”. To help you determine your level of financial literacy, take a few minutes to complete this establishing a baseline quiz. If you are like the vast majority of people, it will be humbling and informative. You might be surprised to see how broad the financial area is and thus how important it is for you as you travel through some of the most important years of your life.

• Most people are happy with their financial condition.
• If you have $12,000 of credit card debt, owe $16,000 on your car loan, make an $800 rent payment, and have $25,000 of student loans and your assets total $50,000 your net worth is a negative $3,800.
• If you make the stated minimum monthly payment on your credit card bill, you do not incur any interest charges.
• As a general rule, going into debt is a bad choice and should be avoided at all cost. 
• Young adults have a better chance to save than people of middle age. 
• It is illegal for future employers to check your financial condition before hiring. 
• Planning for retirement should begin no later than the age of forty five.
• Productivity has little to do with how much money people make.
• Personal financial success is primarily the result of generous welfare and unemployment programs.
• Investing in the stock market will give you a better “return” than spending money on post secondary education.
• It is important to develop a well thought out budget plan and stick to it. 
• Rich people do not have to make as many financial choices as poor people.
• Two people can live as cheaply as one. 
• The more expensive something is the more satisfaction it provides the owner. 
• Wise consumers seek all the information about a good or service before purchase. 
• Love is free.
• It is almost impossible to become financially successful after you have burdened yourself with huge debt.
• Healthy people need not burden themselves with health or life insurance premiums. 
  

HOW DID YOU DO?

You may be surprised to find out that each of these statements is considered to be false.  Hopefully the results of this activity will motivate you to find out more about financial literacy as well as broaden your understanding as to what financial literacy is all about.