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 does APR really mean?

Annual Percentage Rate

Always Party Responsibly

Applied Percentage Rate

Annual Penalty Rate

2 / 22

What is the debt snowball method?

Paying off the debt with the highest interest rate first

Paying off the largest debt first

Paying off the smallest debt first to gain momentum

Ignoring all debts until they are written off

3 / 22

What makes up your credit score?

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.

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.

4 / 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

5 / 22

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

It guarantees financial success

It is only useful for wealthy individuals

It outlines steps to achieve your financial goals

It increases your expenses

6 / 22

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

The same as your housing costs.

Between 10-15%

Half your income.

As long as you can make the payment.

7 / 22

What does 'liquidity' mean?

How fast you can turn assets into cash.

How easily a person can pay off debts.

The value of your stock portfolio.

The amount of cash a person has on hand.

8 / 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.

9 / 22

What debts can't you erase with bankruptcy?

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

Big-ticket items like TVs or cars.

Payday loans and short-term loans.

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

10 / 22

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

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

Borrowing money when emergencies arise

Using credit cards for emergencies

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

11 / 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

12 / 22

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

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

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

o About 2% - every little bit helps!

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

13 / 22

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

It's best to keep it below 41%.

More income than debt is good.

Not more than half your income (50%).

Try not to go over 27%.

14 / 22

What's a good strategy for your personal budget?

When you feel like it.

Whenever you have a few bucks extra.

Always save something, even if you spend first.

Saving a consistent percentage of your income.

15 / 22

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

Time-bound

Vague

Unattainable

Unmeasurable

16 / 22

How does compound interest differ from simple interest?

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.

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

17 / 22

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

Gas to get to work

Furniture and paint

Closing costs, taxes, insurance, and upkeep.

Just the home's price.

18 / 22

Who calculates your credit score?

Disney, Apple, Amazon

Visa, MasterCard, AMEX

Experian, Equifax, TransUnion

Wells Fargo, TD Bank, Bank of America

19 / 22

How do you figure out your net worth?

Multiplying your credit score with your income.

Add up what you own and subtract what you owe.

Divide your income by you debts.

Subtract your debts from your income.

20 / 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

21 / 22

What does 'amortization' mean for a mortgage?

It’s how your payments are spread over time.

The process of transferring the loan.

An extra service fee when buying a home.

How much your payment will increase each year.

22 / 22

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

20% of the home's price

$20,000

About 5% of the loan’s total amount

Whatever you can gather quickly

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.