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 should be part of your budget?

Every type of expense, including small daily purchases.

Only for life’s surprises.

Only major expenses like rent and car payments.

Most people do not need a budget.

2 / 22

How do you figure out your net worth?

Subtract your debts from your income.

Multiplying your credit score with your income.

Divide your income by you debts.

Add up what you own and subtract what you owe.

3 / 22

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

More income than debt is good.

Not more than half your income (50%).

Try not to go over 27%.

It's best to keep it below 41%.

4 / 22

What is a zero-based budget?

Budgeting with zero knowledge about your expenses

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

Saving all your income and not spending any

Spending all your income by the end of the month

5 / 22

What is the debt snowball method?

Ignoring all debts until they are written off

Paying off the largest debt first

Paying off the debt with the highest interest rate first

Paying off the smallest debt first to gain momentum

6 / 22

What does APR really mean?

Always Party Responsibly

Annual Penalty Rate

Applied Percentage Rate

Annual Percentage Rate

7 / 22

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

Unmeasurable

Time-bound

Vague

Unattainable

8 / 22

Who calculates your credit score?

Visa, MasterCard, AMEX

Wells Fargo, TD Bank, Bank of America

Disney, Apple, Amazon

Experian, Equifax, TransUnion

9 / 22

How does compound interest differ from simple interest?

There is no difference, both are the same.

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

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.

10 / 22

How often can you check your credit report without paying?

Twice a year

As many times as you want

Once a year

It's never free

11 / 22

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

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

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.

12 / 22

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

Whatever you can gather quickly

About 5% of the loan’s total amount

$20,000

20% of the home's price

13 / 22

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

It guarantees financial success

It is only useful for wealthy individuals

It increases your expenses

It outlines steps to achieve your financial goals

14 / 22

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

The same as your housing costs.

Half your income.

As long as you can make the payment.

Between 10-15%

15 / 22

What makes up your credit score?

A good attitude and a pinky promises.

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.

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.

16 / 22

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

Closing costs, taxes, insurance, and upkeep.

Furniture and paint

Gas to get to work

Just the home's price.

17 / 22

What does 'liquidity' mean?

The value of your stock portfolio.

The amount of cash a person has on hand.

How easily a person can pay off debts.

How fast you can turn assets into cash.

18 / 22

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

Borrowing money when emergencies arise

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

Using credit cards for emergencies

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

19 / 22

Inflation affects your buying power by:

Increasing it when prices drop

Doubling it every year

Not affecting it at all

Decreasing it as prices rise

20 / 22

What's a good strategy for your personal budget?

Whenever you have a few bucks extra.

Saving a consistent percentage of your income.

Always save something, even if you spend first.

When you feel like it.

21 / 22

What debts can't you erase with bankruptcy?

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

Big-ticket items like TVs or cars.

Payday loans and short-term loans.

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

22 / 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.

An extra service fee when buying a home.

The process of transferring the loan.

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.