by jade.hermiston
Financial wellness is more than just having money in the bank; it’s about making informed decisions that lead to long-term stability and peace of mind. This quiz will challenge your understanding of key financial concepts and provide insights into managing your money effectively. Take the challenge and see how financially savvy you really are!
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
Financial Wellness Quiz Questions Overview
1. What is the primary purpose of a budget?
To track income and expenses
To increase spending
To avoid paying taxes
To apply for loans
2. Which of the following is considered a good debt?
Credit card debt
Payday loan
Mortgage
Car loan
3. What is an emergency fund?
Money set aside for vacations
Funds for unexpected expenses
Investment in stocks
Savings for retirement
4. What does ‘diversification’ mean in investing?
Putting all your money in one stock
Spreading investments across different assets
Investing only in real estate
Keeping all money in a savings account
5. Which of the following is a tax-advantaged retirement account?
Checking account
Traditional IRA
Credit card
Money market account
6. What is the benefit of compound interest?
It decreases your debt
It increases your savings over time
It keeps your money safe
It avoids taxes
7. What is a credit score?
A measure of your wealth
A number representing your creditworthiness
Your total debt
Your annual income
8. What does ‘liquidity’ refer to in financial terms?
The profitability of an investment
The ease of converting assets to cash
The interest rate on a loan
The amount of debt you have
9. What is the purpose of a 401(k) plan?
To save for education
To save for retirement
To buy a house
To pay off debt
10. Which of the following is a fixed expense?
Groceries
Utility bills
Mortgage payment
Entertainment
11. What is the main advantage of a Roth IRA?
Tax-free withdrawals in retirement
Higher interest rates
Employer matching contributions
No contribution limits
12. What does ‘net worth’ mean?
Total income
Total assets minus total liabilities
Total savings
Total investments
13. What is the purpose of an index fund?
To outperform the market
To track the performance of a market index
To invest in individual stocks
To provide high-risk investments
14. What is a common strategy for paying off debt?
Ignoring it
Paying the smallest debt first
Paying the highest interest debt first
Taking on more debt
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
