The Money Diaries Quiz 1: What Do You Know About Personal Finance?

11 Questions | By Themoneydiaries | Last updated: Mar 21, 2022 | Total Attempts: 373

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The Money Diaries Quiz 1: What Do You Know About Personal Finance? - Quiz

This quiz is to test your knowledge of personal finance. What do you know about your money? Love,

Questions and Answers

1.

In the credit card industry, what type of person is a revolver?
- A.
  
  A person who applies for too many credit cards
- B.
  
  A person who pays their minimum balance every month
- C.
  
  A person who pays off their total credit card balance on time every month
2.

Which of these can potentially damage your credit score?Question taken from: howstuffworks.com
- A.
  
  Making late payments
- B.
  
  Closing a credit account with a low balance and high limit
- C.
  
  Making only the minimum monthly payment
3.

What is a 401(k) plan?
- A.
  
  A savings account through the government that is not taxed and grows above the inflation rate.
- B.
  
  A type of retirement account that you only pay income tax on when you make withdrawals.
- C.
  
  A retirement account through your employer. Contributions are made before tax is taken out of your paycheck and most companies match up to a certain amount of your contributions.
4.

Government bonds are "fancy IOUs" from Uncle Sam. They provide funding for special projects. You purchase a bond for a specific amount of time and in exchange the government pays you back with interest.
- A.
  
  True
- B.
  
  False
5.

What is the number one reason people go into debt?
- A.
  
  Bad spending habits
- B.
  
  Drug abuse
- C.
  
  Medical bills
6.

A question for the early 20 somethings:What should a college student do to take steps towards financial independence? (Check all that apply)
- A.
  
  They should track their income, and track their spending.
- B.
  
  Call an insurance provider about setting up Life Insurance.
- C.
  
  Have an independent checking and savings account at a bank.
- D.
  
  Apply for a credit card - start building credit. (Make sure they know the rules of success).
- E.
  
  Be educated. Learn that know one will care about money management better than you will. Take responsibility for yourself.
7.

You start working for a company that offers you a 401(k) retirement plan, the company will match up to 50% of your contribution, what should you do?
- A.
  
  Don't take money out of your paycheck for a retirement plan you can't touch until you're 65.
- B.
  
  Begin contributing the maximum amount out of your paycheck. You'll be getting free money from your company towards retirement. It's the easiest way for you to start saving.
- C.
  
  Contribute 5% from your paycheck, you need more cash.
8.

Taxes: If you get a big tax refund each year, you're having too little withheld from your paycheck.
- A.
  
  True
- B.
  
  False
9.

"You may deduct charitable contributions of money or property made to qualified organizations if you itemize your deductions." (IRS Publication 78)
- A.
  
  True
- B.
  
  False
10.

Financial Issues are cited among the Top 5 reasons people file for divorce
- A.
  
  True
- B.
  
  False
11.

For my knowledge: I enjoy TheMoneyDiaries.com (doesn't count towards score)
- A.
  
  True
- B.
  
  False