What do you really know about finances?
Just enough to cover the bills? Do you find yourself wondering where your paycheck disappears each month, or are you confident in the financial choices you make?
Now is an ideal moment to consider your money know-how — and to work on improving your financial literacy.
Financial literacy means grasping core money concepts and having the skills and knowledge to use cash in a positive, effective manner.
We at Savinly enjoy a challenge, so we put together a playful quiz to help refresh your financial understanding. Don’t stress — first we’ll share some useful resources so you can do well on this quiz.
6 Articles to Boost Your Financial Literacy
Read the pieces below to deepen your understanding of financial literacy and basic money ideas. After that, try your hand at our financial literacy quiz.
Revealing America’s Financial Literacy Issue
If you’ve learned just enough about money to get by, you might wonder why financial literacy matters so much.
Savinly carried out a survey of more than 1,500 adults in 2019 and discovered that people with limited financial literacy tended to earn less and save less than those who grew up discussing money at home or learned it in school.
Understanding fundamental money principles can have a tangible effect on your household’s financial situation.
Give Young People the Gift of Financial Savvy
If you’re a parent (or have nieces, nephews, grandchildren or other children in your life), take a moment to show them how to manage money wisely. Here’s our guide for teaching kids the basics of money management.
Once they grasp those essentials, advance the lessons and teach them how to grow wealth. Try these smart tactics to get kids excited about investing.
Take Charge of Your Money
Stop watching money slip away. Tell it how to behave — with a budget.
A budget is the plan for how you want to allocate your hard-earned cash. Here’s a step-by-step walkthrough for budgeting your money.
Become an Excellent Saver
Putting some income aside is great, but knowing how to speed up your savings growth is even better.
Money that earns compound interest will build up more than cash stuffed under a mattress. Wondering what compound interest is and how it works? We explain it here.
Get a Grip on Your Credit Score
Your credit score is essentially a grade for how responsible you are with borrowed money. This number matters when you apply for credit cards, obtain car insurance and buy or rent a home — so it’s significant.
How do you work toward an excellent credit score? These five factors are the ones that count when it comes to your credit.
Try Our Financial Literacy Quiz
1. True or false:
Learning financial skills at a young age typically leads to higher earnings and greater savings as an adult.
2. Kids can learn about money management by:
A. Using money jars for spending, saving and giving.
B. Receiving an allowance.
C. Comparing prices of items while shopping.
D. All of the above.
3. Which of these is an example of a budgeting approach?
A. The 50/30/20 approach.
B. The snowball method.
C. The even-odd technique.
D. The hexagon strategy.
4. A budget can help you with all of these except:
A. Cutting back on impulse purchases.
B. Ensuring bills are paid on time.
C. Negotiating your salary.
D. Achieving your financial objectives.
5. True or false:
Personal finance is a mandatory subject in 87% of high schools nationwide.
6. Credit scores fall within the range of:
A. 0 to 100
B. 300 to 850
C. 200 to 600
D. A to F
7. Regarding your credit score, the most important factor is:
A. The amount of credit you qualify for.
B. The quantity of credit cards you own.
C. Making debt payments on time.
D. Having a varied mix of credit accounts.
8. Compound interest is:
A. Interest on interest.
B. What you get when multiplying principal by the interest rate.
C. When your interest rate changes during the loan term.
D. Another name for simple interest.
9. This retirement vehicle uses pre-tax dollars to let your money grow:
A. Roth IRA
B. 401(k)
C. 407(b)
D. 529 plan
10. A fractional share:
A. Pays dividends half as often as whole shares.
B. Is available only to minors who want to start investing.
C. Requires you to diversify the funds you invest.
D. Makes it simple to invest small sums of money.
Answer key:
(1) True (2) D (3) A (4) C (5) False (6) B (7) C (8) A (9) B (10) D
You scored 8–10 correct answers: You’ve got a solid grasp! Hopefully you’re putting that financial knowledge to work to grow your wealth. Join the Savinly Community to swap your best money strategies with others.
You scored 4–7 correct answers: Your money knowledge is improving. Focus on the areas that challenge you most. Credit and investing can be confusing. If a personal finance problem is on your mind, send your questions to Dear Savinly — our financial advice columnist — for helpful guidance.
You scored 0–3 correct answers: You could use a boost in financial literacy. Luckily, Savinly has a wide range of articles on many personal finance topics. Follow our social accounts for frequently shared articles and money tips, and check out our financial literacy report for more insights.
Jordan Miles is a senior writer at Savinly.
