Master Your Money: A Quiz to Test Your Financial Literacy

Citizens State Bank is proud to celebrate Financial Literacy Awareness Month this April by inviting you to participate in our Financial Literacy Quiz! We believe in empowering our community with the knowledge and tools necessary for financial wellness. Our quiz is designed to test your understanding of basic financial concepts, including saving, investing, budgeting, and credit management. Whether you’re a financial novice or a savvy saver, this quiz is a great opportunity to assess your financial knowledge and learn valuable insights. Join us in our commitment to financial education and take the first step towards mastering your finances. Let’s make financial literacy a priority for everyone this month!

Financial Literacy Quiz

1 / 22

What is the recommended down payment on a standard home loan?

About 5% of the loan’s total amount

20% of the home's price

$20,000

Whatever you can gather quickly

2 / 22

What portion of your income should go to a car payment?

Half your income.

Between 10-15%

The same as your housing costs.

As long as you can make the payment.

3 / 22

Which of the following is a recommended strategy for building an emergency fund?

Investing in high-risk stocks and cash out when you need the money

Using credit cards for emergencies

Borrowing money when emergencies arise

Putting aside 3-6 months' worth of living expenses in a savings account

4 / 22

What is a key benefit of having a written financial plan?

It is only useful for wealthy individuals

It increases your expenses

It outlines steps to achieve your financial goals

It guarantees financial success

5 / 22

What makes up your credit score?

How much you owe, your interest rates, number of credit cards, late payments, and overcharges.

Your income, number of credit cards, how timely you pay, penalties, and how much you save.

A good attitude and a pinky promises.

Your payment history, how much of your credit you use, new credit, how long you've had credit, and the types of credit you have.

6 / 22

What should be part of your budget?

Every type of expense, including small daily purchases.

Only major expenses like rent and car payments.

Most people do not need a budget.

Only for life’s surprises.

7 / 22

How often can you check your credit report without paying?

Twice a year

As many times as you want

It's never free

Once a year

8 / 22

What is the debt snowball method?

Paying off the smallest debt first to gain momentum

Paying off the debt with the highest interest rate first

Paying off the largest debt first

Ignoring all debts until they are written off

9 / 22

What debts can't you erase with bankruptcy?

Any debt can be discharged. Bankruptcy is a get out of jail free card.

Student loans, child support, alimony, and legal judgments.

Payday loans and short-term loans.

Big-ticket items like TVs or cars.

10 / 22

What's a healthy debt-to-income ratio to keep things stable?

More income than debt is good.

Try not to go over 27%.

It's best to keep it below 41%.

Not more than half your income (50%).

11 / 22

How much of your paycheck should you try to save each month?

o Whatever you can after paying bills - even if it's just some loose change.

o About 2% - every little bit helps!

o Aim for 10% - it's a good balance.

o Any spare cash - but make sure to pay your bills first!

12 / 22

Inflation affects your buying power by:

Decreasing it as prices rise

Not affecting it at all

Increasing it when prices drop

Doubling it every year

13 / 22

Who calculates your credit score?

Experian, Equifax, TransUnion

Disney, Apple, Amazon

Visa, MasterCard, AMEX

Wells Fargo, TD Bank, Bank of America

14 / 22

What is a zero-based budget?

Allocating every dollar of income to specific expenses, savings, and debt repayments

Budgeting with zero knowledge about your expenses

Saving all your income and not spending any

Spending all your income by the end of the month

15 / 22

How do you figure out your net worth?

Add up what you own and subtract what you owe.

Divide your income by you debts.

Multiplying your credit score with your income.

Subtract your debts from your income.

16 / 22

What does 'amortization' mean for a mortgage?

It’s how your payments are spread over time.

How much your payment will increase each year.

The process of transferring the loan.

An extra service fee when buying a home.

17 / 22

What's a good strategy for your personal budget?

Whenever you have a few bucks extra.

Always save something, even if you spend first.

When you feel like it.

Saving a consistent percentage of your income.

18 / 22

What does 'liquidity' mean?

How easily a person can pay off debts.

The value of your stock portfolio.

How fast you can turn assets into cash.

The amount of cash a person has on hand.

19 / 22

What costs should you consider besides the home's price?

Furniture and paint

Gas to get to work

Just the home's price.

Closing costs, taxes, insurance, and upkeep.

20 / 22

How does compound interest differ from simple interest?

Simple interest is calculated daily, while compound interest is calculated annually.

There is no difference, both are the same.

Compound interest is interest on interest, while simple interest is only on the principal amount.

Compound interest is for loans, and simple interest is for savings accounts.

21 / 22

Which of the following is a characteristic of a SMART financial goal?

Unmeasurable

Time-bound

Unattainable

Vague

22 / 22

What does APR really mean?

Applied Percentage Rate

Annual Penalty Rate

Annual Percentage Rate

Always Party Responsibly

Your score is

The average score is 74%

Connect with Citizens State Bank Today for Personalized Guidance and Support.

Citizens State Bank is dedicated to enhancing your financial health and knowledge, not just during Financial Literacy Awareness Month, but all year round. If you’re inspired to take control of your financial future, have any questions, or are ready to take the next step towards financial wellness, we encourage you to reach out to us. Our team is here to provide you with personalized support, resources, and guidance to help you navigate the complexities of financial planning, saving, investing, and credit management. Let’s work together to achieve your financial goals and make informed decisions that lead to a secure and prosperous future.