Could You Benefit From Financial Coaching? Trivia Quiz

Explanation
When considering purchasing a new home or renting a new apartment, it is generally recommended that the monthly payment should not exceed 40% of your income. This is to ensure that you have enough financial flexibility to cover other expenses and save for the future. Exceeding this percentage may put you at risk of becoming financially burdened and unable to meet your other financial obligations.

Explanation
The correct answer is "Yes" because having an attorney on retainer or having $1,500 set aside to retain an attorney indicates that the person is prepared for potential legal action. This suggests that they understand the importance of having legal representation and are financially prepared to handle any legal issues that may arise.

Explanation
Experts generally recommend setting aside at least 10% of your income for emergencies or large future purchases. This percentage allows for a balance between saving for unexpected expenses and still having enough income for day-to-day expenses and other financial goals. Saving 10% of your income can provide a cushion for unexpected events and help you avoid going into debt when faced with emergencies or when you need to make significant purchases in the future.

Explanation
The correct answer is 760 or higher. This indicates that a credit score of 760 or higher is considered excellent and reflects a good credit history. It suggests that the individual has a low risk of defaulting on loans and is likely to be approved for credit at favorable terms. Lenders typically view individuals with a credit score in this range as responsible borrowers who are likely to make timely payments.

Explanation
If you do not pay your credit card minimum balance every month, all of these consequences can occur. A $35 charge is incurred, the interest rate increases to above 25%, interest is accrued daily, and the line of credit may be suspended.

Explanation
The statement is false because the correct waiting period after filing for bankruptcy is not always 7 years. The waiting period can vary depending on the type of bankruptcy filed. For example, Chapter 7 bankruptcy stays on your credit report for 10 years, while Chapter 13 bankruptcy stays for 7 years. However, this does not mean that you are automatically ineligible for new credit during this entire period. It may be possible to obtain new credit before the waiting period is over, although it may come with higher interest rates or stricter terms.

Explanation
You can begin investing with any of the given amounts: $10, $100, $500, $1,000, $5,000.

Explanation
The correct answer is "Yes" because it indicates that the person has kept all the necessary records, including receipts, for the past 7 years in case they are audited by the IRS for their taxes. This suggests that they have been diligent in maintaining their financial records and are prepared for any potential audit.