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 a key benefit of having a written financial plan?

It guarantees financial success

It increases your expenses

It outlines steps to achieve your financial goals

It is only useful for wealthy individuals

2 / 22

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

$20,000

Whatever you can gather quickly

About 5% of the loan’s total amount

20% of the home's price

3 / 22

What is a zero-based budget?

Spending all your income by the end of the month

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

4 / 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

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

Using credit cards for emergencies

Borrowing money when emergencies arise

5 / 22

How often can you check your credit report without paying?

Once a year

It's never free

Twice a year

As many times as you want

6 / 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.

7 / 22

What is the debt snowball method?

Paying off the debt with the highest interest rate first

Paying off the smallest debt first to gain momentum

Paying off the largest debt first

Ignoring all debts until they are written off

8 / 22

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

Just the home's price.

Furniture and paint

Gas to get to work

Closing costs, taxes, insurance, and upkeep.

9 / 22

What's a good strategy for your personal budget?

When you feel like it.

Always save something, even if you spend first.

Whenever you have a few bucks extra.

Saving a consistent percentage of your income.

10 / 22

Who calculates your credit score?

Wells Fargo, TD Bank, Bank of America

Visa, MasterCard, AMEX

Disney, Apple, Amazon

Experian, Equifax, TransUnion

11 / 22

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

Time-bound

Vague

Unattainable

Unmeasurable

12 / 22

What debts can't you erase with bankruptcy?

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.

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

13 / 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.

14 / 22

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

Between 10-15%

The same as your housing costs.

As long as you can make the payment.

Half your income.

15 / 22

How does compound interest differ from simple interest?

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

There is no difference, both are the same.

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

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

16 / 22

What does APR really mean?

Always Party Responsibly

Annual Penalty Rate

Applied Percentage Rate

Annual Percentage Rate

17 / 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%.

Try not to go over 27%.

More income than debt is good.

18 / 22

Inflation affects your buying power by:

Not affecting it at all

Decreasing it as prices rise

Increasing it when prices drop

Doubling it every year

19 / 22

What does 'amortization' mean for a mortgage?

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.

The process of transferring the loan.

20 / 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.

21 / 22

What does 'liquidity' mean?

The amount of cash a person has on hand.

How fast you can turn assets into cash.

How easily a person can pay off debts.

The value of your stock portfolio.

22 / 22

What should be part of your budget?

Every type of expense, including small daily purchases.

Most people do not need a budget.

Only for life’s surprises.

Only major expenses like rent and car payments.

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.