by alex
Achieving financial wellness is not just about having money, but understanding how to manage it wisely. This quiz will challenge your knowledge on various aspects of personal finance, from budgeting and saving to investing and credit management. Sharpen your financial acumen and see how well you can navigate the world of money management. Good luck, and may your financial wisdom grow!
Financial Wellness Quiz Questions Overview
1. What is the primary purpose of creating a budget?
To track expenses
To save money
To plan for future expenses
All of the above
2. Which of the following is considered a good debt?
Credit card debt
Payday loan
Student loan
Car loan
3. What does the term ‘diversification’ mean in investing?
Investing in a single stock
Spreading investments across various assets
Putting all money in a savings account
Borrowing money to invest
4. What is an emergency fund?
Money saved for a vacation
Funds for daily expenses
Savings for unexpected expenses
Investment in stocks
5. Which of the following is a benefit of having a high credit score?
Higher interest rates on loans
Lower interest rates on loans
Difficulty in getting approved for credit
None of the above
6. What is the ‘Rule of 72’ in finance?
A method to calculate loan interest
A formula to estimate the doubling time of an investment
A budgeting strategy
A tax-saving plan
7. Which of the following is a fixed expense?
Groceries
Utility bills
Rent
Entertainment
8. What is the main advantage of a Roth IRA?
Tax-deductible contributions
Tax-free withdrawals in retirement
Employer matching contributions
Higher contribution limits
9. What does ‘APR’ stand for in terms of credit cards?
Annual Percentage Rate
Annual Payment Rate
Average Percentage Rate
Annual Penalty Rate
10. Which of the following is a benefit of automatic savings plans?
Increases spending
Reduces the need for budgeting
Makes saving easier by automating the process
Eliminates the need for an emergency fund
