Money Wise Quiz

Question 1

How do I budget for seasonal expenses?

a.)

Use emergency savings because you didn't an emergency this year.

b.)

Estimate cost and save throughout the year.

c.)

Apply for a new credit card and pay the minimum payment.

Question 2

Whats the best way to handle overspending?

a.)

Ignore the overspending.

b.)

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

c.)

Borrow from your emergency fund.

Question 3

How do I deal with rising expenses while trying to save?

a.)

Ignore inflation.

b.)

Stop saving altogether.

c.)

Reduce discretionary spending and increase savings contributions gradually.

Question 4

What expenses qualify as an emergency?

a.)

Forgotten holiday gifts.

b.)

Unexpected car repairs

c.)

Last minute vacations.

Question 5

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

a.)

50% or more.

b.)

Exactly 100%.

c.)

35% or less.

Question 6

What is an amortization schedule?

a.)

A table showing how a payment is applied to principal and interest.

b.)

A schedule provided by a loan officer listing all of your debts and repayment dates.

c.)

A breakdown of monthly expenses that's generated after creating a budget.

Question 7

What is growth investing?

a.)

Contributing towards an UTMA account for your children.

b.)

Focusing on Crypto for guaranteed growth.

c.)

Investing in companies expected to grow significantly.

Question 8

When should I start investing for retirement?

a.)

As early as possible to benefit from compounding.

b.)

In your 40s and kids have gone to college.

c.)

Only after buying a home.

Question 9

Why is compound interest important in retirement savings?

a.)

It increases your tax rate.

b.)

It helps your money grow over time.

c.)

It guarantees no financial losses.

Question 10

What is a SEP IRA?

a.)

A Simplified Employee Pension IRA for self-employed individuals.

b.)

A government pension plan.

c.)

A stock-trading account.

15/15 Completed

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