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 debt snowball method?

Paying off the smallest debt first to gain momentum

Ignoring all debts until they are written off

Paying off the debt with the highest interest rate first

Paying off the largest debt first

2 / 22

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

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

o About 2% - every little bit helps!

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.

3 / 22

What makes up your credit score?

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.

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

A good attitude and a pinky promises.

4 / 22

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

$20,000

About 5% of the loan’s total amount

Whatever you can gather quickly

20% of the home's price

5 / 22

Who calculates your credit score?

Disney, Apple, Amazon

Experian, Equifax, TransUnion

Wells Fargo, TD Bank, Bank of America

Visa, MasterCard, AMEX

6 / 22

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

Not more than half your income (50%).

It's best to keep it below 41%.

More income than debt is good.

Try not to go over 27%.

7 / 22

What debts can't you erase with bankruptcy?

Big-ticket items like TVs or cars.

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.

8 / 22

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

Just the home's price.

Closing costs, taxes, insurance, and upkeep.

Furniture and paint

Gas to get to work

9 / 22

What does 'liquidity' mean?

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.

The value of your stock portfolio.

10 / 22

How does compound interest differ from simple interest?

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

There is no difference, both are the same.

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.

11 / 22

How often can you check your credit report without paying?

It's never free

As many times as you want

Once a year

Twice a year

12 / 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

Borrowing money when emergencies arise

Using credit cards for emergencies

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

13 / 22

Inflation affects your buying power by:

Doubling it every year

Not affecting it at all

Increasing it when prices drop

Decreasing it as prices rise

14 / 22

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

Unmeasurable

Unattainable

Vague

Time-bound

15 / 22

What should be part of your budget?

Every type of expense, including small daily purchases.

Only major expenses like rent and car payments.

Only for life’s surprises.

Most people do not need a budget.

16 / 22

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

The same as your housing costs.

Between 10-15%

As long as you can make the payment.

Half your income.

17 / 22

What's a good strategy for your personal budget?

Always save something, even if you spend first.

Whenever you have a few bucks extra.

Saving a consistent percentage of your income.

When you feel like it.

18 / 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 guarantees financial success

It increases your expenses

19 / 22

What is a zero-based budget?

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

Budgeting with zero knowledge about your expenses

20 / 22

How do you figure out your net worth?

Multiplying your credit score with your income.

Divide your income by you debts.

Add up what you own and subtract what you owe.

Subtract your debts from your income.

21 / 22

What does 'amortization' mean for a mortgage?

How much your payment will increase each year.

The process of transferring the loan.

An extra service fee when buying a home.

It’s how your payments are spread over time.

22 / 22

What does APR really mean?

Applied Percentage Rate

Always Party Responsibly

Annual Percentage Rate

Annual Penalty Rate

Your score is

The average score is 65%

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.