Money Wise Quiz

Question 1

How do I budget for irregular income?

There's no need to budget in months of high income.

Base your budget on your lowest expected income.

Spend everything above the average income.

Question 2

Whats the best way to handle overspending?

Cut back in other categories or adjust next month's budget.

Borrow from your emergency fund.

Ignore the overspending.

Question 3

Should I track cash spending separately?

Use only receipts for cash tracking.

No, it doesn't matter.

Yes, because cash spending is not automatically tracked.

Question 4

What should I do if an emergency wipes out my savings?

Ignore the emergency.

Stop saving and focus only on paying bills.

Rebuild savings gradually after addressing the emergency.

Question 5

How do I calculate how much I need to save for a big purchase?

Divide the total cost by the number of months until purchase.

Save randomly without a plan.

Only save after the purchase.

Question 6

How much should I save in an emergency fund?

3 - 6 months of expenses.

1 month of expenses.

12 - 24 months of expenses.

Question 7

What is a good debt-to-income (DTI) ratio to aim for?

50% or more.

Exactly 100%.

35% or less.

Question 8

What is an example of unsecured debt?

A personal loan.

A mortgage.

A car loan.

Question 9

What is a hard inquiry on your credit report?

When I look at the score my bank shows in the app.

A monthly credit monitoring report.

A credit check by a lender when applying for a loan.

Question 10

What is rebalancing a portfolio?

Selling all investments at once.

Only buying more stocks.

Adjusting asset allocation to maintain desired risk levels.

Question 11

What’s the benefit of employer matching in a 401(k)?

It's free money added to your retirement savings.

It guarantees returns.

It doubles your portfolio.

Question 12

What is dollar-cost averaging?

Knowing when the market is going up and down, using the "Time the Market" strategy.

Investing a fixed amount regularly regardless of market conditions.

Investing only when the market is high.

Question 13

What is an annuity?

A type of stock.

A financial product providing regular income in retirement.

A savings account.

Question 14

What is the purpose of retirement planning?

To ensure financial security after leaving the workforce.

To only save for medical expenses.

To avoid paying taxes.

Question 15

What is the contribution limit for a 401(k) in 2024?

$7,000

$23,500

$47,500

15/15 Completed

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