Financial literacy is essential for making informed decisions about your money. However, studies show that many adults still need a stronger understanding of personal finance. Are you financially savvy? Test your knowledge with this 13-question quiz, and see how you measure up.
1. How much should you save for emergencies?
- C) Three to six months’ expenses
2. What percentage of your income should go to housing costs?
- C) 28%
3. What debt should you pay off first?
- C) The debt with the highest interest rate
4. What is net income?
- A) Money left after payroll deductions
5. How much should you save for retirement?
- C) 15%
6. What’s considered a ‘very good’ credit score?
- D) 740+
7. Which statement about credit scores is false?
- B) Checking your score often hurts it
8. Which of these impacts your credit score?
- D) All of the above (Payment history, length of credit history, total debt)
9. What’s the 50/30/20 budget rule?
- B) Spend 50% on needs, 30% on wants, 20% on savings/debt
10. If you save Dh1,000 at 2% interest for 5 years, how much do you have?
- D) Slightly more than Dh1,100 (due to compounding)
11. How much of your working salary should you aim to have after retirement?
- C) 80%
12. What is credit card APR?
- A) The interest rate charged yearly
13. If interest rates rise, what happens?
- A) Borrowing costs increase
Scoring Guide:
- 10-13 Correct: You’re financially savvy! Keep up the great work.
- 6-9 Correct: Not bad, but there’s room for improvement.
- 0-5 Correct: Time to brush up on your financial literacy!
Why Financial Literacy Matters
A strong understanding of personal finance can lead to smarter decisions in budgeting, saving, and investing. Improving your financial literacy helps prevent costly mistakes and ensures you’re on track to secure your financial future. Regularly testing your knowledge and staying updated on key financial concepts are great ways to boost your financial IQ.
Take the quiz, evaluate your score, and start mastering your financial future today!
Keywords: Financial literacy, personal finance, financial IQ quiz, budgeting, credit score, retirement savings, smart money decisions, financial knowledge.
SUBSCRIBE
NO SPAM – JUST NEWS THAT MATTERS.
- Source: GULF NEWS
