by Ashleigh Blackwood
Understanding financial wellness is key to achieving long-term stability and peace of mind. This quiz will challenge your knowledge on various aspects of personal finance, including budgeting, saving, investing, and more. Let’s see how well you can navigate the world of finance and make informed decisions for a prosperous future. Good luck!
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 debt
To avoid paying taxes
To hide money from the government
2. Which of the following is considered a liquid asset?
Real estate
Savings account
Stocks
Bonds
3. What is the main benefit of compound interest?
It decreases your debt
It allows your investment to grow exponentially
It guarantees a fixed return
It protects against inflation
4. What is a credit score?
A measure of your income
A measure of your creditworthiness
A measure of your savings
A measure of your spending habits
5. Which of the following is a fixed expense?
Groceries
Utility bills
Rent
Entertainment
6. What is the purpose of an emergency fund?
To pay for vacations
To cover unexpected expenses
To invest in stocks
To buy luxury items
7. What is diversification in investing?
Investing all your money in one stock
Spreading your investments across different assets
Keeping all your money in cash
Investing only in real estate
8. What is a 401(k) plan?
A health insurance plan
A retirement savings plan
A type of mortgage
A credit card
9. What does APR stand for in financial terms?
Annual Percentage Rate
Annual Payment Rate
Average Payment Rate
Average Percentage Rate
10. What is the main advantage of a Roth IRA?
Contributions are tax-deductible
Earnings grow tax-free
It has no contribution limits
It is sponsored by employers
11. What is the difference between a debit card and a credit card?
Debit cards are linked to a bank account; credit cards are a form of loan
Debit cards earn rewards; credit cards do not
Debit cards have higher interest rates; credit cards do not
Debit cards are used for online shopping; credit cards are not
12. What is the purpose of a financial advisor?
To sell insurance
To provide legal advice
To help manage and plan finances
To audit taxes
13. What is an ETF in the context of investing?
Exchange-Traded Fund
Electronic Transfer Fund
Equity Transfer Fund
Economic Trade Fund
14. What is the main goal of retirement planning?
To save for a child’s education
To ensure financial stability in retirement
To pay off a mortgage
To buy a new car
We recommend that you do not leave the page that you are taking this quiz in. Stay honest 🙂
