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's a good strategy for your personal budget?

Saving a consistent percentage of your income.

When you feel like it.

Whenever you have a few bucks extra.

Always save something, even if you spend first.

2 / 22

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

As long as you can make the payment.

Between 10-15%

The same as your housing costs.

Half your income.

3 / 22

What does 'amortization' mean for a mortgage?

The process of transferring the loan.

It’s how your payments are spread over time.

An extra service fee when buying a home.

How much your payment will increase each year.

4 / 22

What is the debt snowball method?

Paying off the largest debt first

Paying off the debt with the highest interest rate first

Ignoring all debts until they are written off

Paying off the smallest debt first to gain momentum

5 / 22

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

About 5% of the loan’s total amount

$20,000

20% of the home's price

Whatever you can gather quickly

6 / 22

What does APR really mean?

Annual Penalty Rate

Annual Percentage Rate

Always Party Responsibly

Applied Percentage Rate

7 / 22

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

It is only useful for wealthy individuals

It outlines steps to achieve your financial goals

It increases your expenses

It guarantees financial success

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

o About 2% - every little bit helps!

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

9 / 22

Who calculates your credit score?

Experian, Equifax, TransUnion

Wells Fargo, TD Bank, Bank of America

Visa, MasterCard, AMEX

Disney, Apple, Amazon

10 / 22

What does 'liquidity' mean?

The amount of cash a person has on hand.

The value of your stock portfolio.

How fast you can turn assets into cash.

How easily a person can pay off debts.

11 / 22

What debts can't you erase with bankruptcy?

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

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

Payday loans and short-term loans.

Big-ticket items like TVs or cars.

12 / 22

What is a zero-based budget?

Saving all your income and not spending any

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

Budgeting with zero knowledge about your expenses

Spending all your income by the end of the month

13 / 22

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

Try not to go over 27%.

It's best to keep it below 41%.

More income than debt is good.

Not more than half your income (50%).

14 / 22

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

Just the home's price.

Gas to get to work

Furniture and paint

Closing costs, taxes, insurance, and upkeep.

15 / 22

How do you figure out your net worth?

Multiplying your credit score with your income.

Divide your income by you debts.

Subtract your debts from your income.

Add up what you own and subtract what you owe.

16 / 22

How often can you check your credit report without paying?

It's never free

Twice a year

Once a year

As many times as you want

17 / 22

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

Vague

Unattainable

Time-bound

Unmeasurable

18 / 22

Inflation affects your buying power by:

Decreasing it as prices rise

Not affecting it at all

Doubling it every year

Increasing it when prices drop

19 / 22

What should be part of your budget?

Only for life’s surprises.

Only major expenses like rent and car payments.

Every type of expense, including small daily purchases.

Most people do not need a budget.

20 / 22

What makes up your credit score?

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.

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

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

A good attitude and a pinky promises.

21 / 22

How does compound interest differ from simple interest?

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

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

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

There is no difference, both are the same.

22 / 22

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

Using credit cards for emergencies

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

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

Borrowing money when emergencies arise

Your score is

The average score is 70%

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.