Money
You have a joint account with your spouse. You also have an individual account at the same bank, but your spouse does not. How much insurance do you have as a couple?
A.$100,000
B.$250,000
C.$750,000
D.$1 million
What is C.$750,000?
Are contributions to a traditional 401(k) plan deducted from your salary before or after taxes?
A.Before
B.After
What is A.Before?
How high must your FICO credit score be for you to qualify for the best interest rates?
A.600
B.650
C.700
D.750
E.800
What is D.750?
What types of things could make it necessary to revise your budget and monthly forecasts?
A.Your property tax bill increased.
B.You decided to splurge on a new coffeemaker.
C.You want to boost your contributions to a retirement account.
D.A and C
What is D.A and C?
High yield savings accounts tend to offer significantly higher interest rates than traditional savings accounts. How much higher are rates typically?
A.2 times as high
B.5 times as high
C.10 times as high
D.20 times as high
What is D.20 times as high?
Which savings strategy will get you to $1 million in the bank by age 65, assuming 8% annualized returns?
A.Save $200 a month, starting at age 20
B.Save $400 a month, starting at age 30
C.Save $800 a month, starting at age 40
D.Save $1,500 a month, starting at age 50
What is A.Save $200 a month, starting at age 20?
It’s a fact: 60% of today’s households face a financial emergency each year, but 40% say they don’t have enough savings to cover a $400 unexpected expense. How much money should you aim to set aside in an emergency fund to handle unanticipated expenses?
A.One months’ salary
B.Three to six months’ worth of essential living expenses
C.Enough to pay the rent/mortgage
What is B.Three to six months’ worth of essential living expenses?
Which statement about fixed vs. variable interest loans is false?
A.Interest on fixed-rate loans stays the same for the life of the loan.
B.Interest on variable-rate loans can fluctuate, which could affect the payments you must make.
C.Interest rates on fixed-rate loans are usually lower than starting rates on variable-rate loans.
What is C.Interest rates on fixed-rate loans are usually lower than starting rates on variable-rate loans?
True or false? There is no age limit for contributing to a Roth IRA, as long as you have earned income that doesn’t exceed the annual limit set by the IRS each year.
What is true?
Your bank just notified you that your 12-month Certificate of Deposit (CD) is maturing. What factors are important to consider before you decide to let it automatically renew?
A.There is a good chance you might need the funds in a shorter time frame.
B.Interest rates have gone up since you opened the CD.
C.You want to do a comparison check of competitive offerings—looking for better rates, lower fees or lower minimum deposits.
D.All of the above
What is D.All of the above?