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#006 Can You Answer These 6 Basic Personal Finance Questions?
This was a quiz in Forbes magazine a few years ago. Most people only get 2 correct…
1. As a general rule, how many months' expenses do financial planners recommend that you set aside in an emergency fund?
- a) 1 to 3 months
- b) 3 to 6 months
- c) 6 to 12 months
- d) 12 to 15 months
Correct Answer: The correct answer is C, which is "6 to 12 months."
2. If you have too many credit cards, what should you do?
- a) close as many as possible
- b) request a higher credit limit
- c) be cautious about closing credit cards
- d) close the cards with the lowest balances
Correct Answer: The correct answer is C, which is "be cautious about closing credit cards."
3. If a late payment is sent to a collections agency, how long will it remain on your credit history even if you have paid it off?
- a) less than a year
- b) 1 to 3 years
- c) 4 to 5 years
- d) 6 to 7 years
Correct Answer: The correct answer is D, which is "6 to 7 years."
4. What is the formula for calculating your net worth?
- a) assets minus liabilities
- b) liabilities minus assets
- c) assets plus liabilities
- d) assets divided by liabilities
Correct Answer: The correct answer is A, which is "assets minus liabilities."
5. Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, would your ability to buy something with the money in this account be:
- a) more than today
- b) less than today
- c) exactly the same
- d) don't know
Correct Answer: The correct answer is B, which is "less than today."
6. Which of the following about Federal student loans is NOT true?
- a) For certain federal loan programs, the interest on your loan is paid by the government while you are in school or during grace periods.
- b) Your parents must sign a promissory note before loan funds are distributed.
- c) Entrance loan counseling for all first-time borrowers is required.
Correct Answer: The correct answer is B, which is "your parents must sign a promissory note before loan funds are distributed."
So to compare yourself, here’s the percentage of people that got each question right.
1. 14% 2. 29% 3. 62% 4. 47% 5. 16% 6. 34%
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Help more pros find us and just take 10 seconds:
• Apple Podcasts: [https://shorturl.at/Jhlez]
• Spotify: [https://shorturl.at/8IeVM]
Connect with Stephen
Website: lifebuilder.co | LinkedIn: [linkedin.com/in/stephencourson] | YouTube: [youtube.com/@stephencourson]
About Lifebuilder
The Lifebuilder Podcast helps ambitious entrepreneurs and leaders gain clarity, eliminate distractions, and achieve their goals faster. Each episode gives practical strategies for personal growth, productivity, and building a meaningful life. If you want clear direction, better focus, and proven frameworks to win at life and work, this show gives you the tools to get unstuck and move forward.
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By Stephen CoursonThis was a quiz in Forbes magazine a few years ago. Most people only get 2 correct…
1. As a general rule, how many months' expenses do financial planners recommend that you set aside in an emergency fund?
- a) 1 to 3 months
- b) 3 to 6 months
- c) 6 to 12 months
- d) 12 to 15 months
Correct Answer: The correct answer is C, which is "6 to 12 months."
2. If you have too many credit cards, what should you do?
- a) close as many as possible
- b) request a higher credit limit
- c) be cautious about closing credit cards
- d) close the cards with the lowest balances
Correct Answer: The correct answer is C, which is "be cautious about closing credit cards."
3. If a late payment is sent to a collections agency, how long will it remain on your credit history even if you have paid it off?
- a) less than a year
- b) 1 to 3 years
- c) 4 to 5 years
- d) 6 to 7 years
Correct Answer: The correct answer is D, which is "6 to 7 years."
4. What is the formula for calculating your net worth?
- a) assets minus liabilities
- b) liabilities minus assets
- c) assets plus liabilities
- d) assets divided by liabilities
Correct Answer: The correct answer is A, which is "assets minus liabilities."
5. Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, would your ability to buy something with the money in this account be:
- a) more than today
- b) less than today
- c) exactly the same
- d) don't know
Correct Answer: The correct answer is B, which is "less than today."
6. Which of the following about Federal student loans is NOT true?
- a) For certain federal loan programs, the interest on your loan is paid by the government while you are in school or during grace periods.
- b) Your parents must sign a promissory note before loan funds are distributed.
- c) Entrance loan counseling for all first-time borrowers is required.
Correct Answer: The correct answer is B, which is "your parents must sign a promissory note before loan funds are distributed."
So to compare yourself, here’s the percentage of people that got each question right.
1. 14% 2. 29% 3. 62% 4. 47% 5. 16% 6. 34%
Love This? Leave a Review
Help more pros find us and just take 10 seconds:
• Apple Podcasts: [https://shorturl.at/Jhlez]
• Spotify: [https://shorturl.at/8IeVM]
Connect with Stephen
Website: lifebuilder.co | LinkedIn: [linkedin.com/in/stephencourson] | YouTube: [youtube.com/@stephencourson]
About Lifebuilder
The Lifebuilder Podcast helps ambitious entrepreneurs and leaders gain clarity, eliminate distractions, and achieve their goals faster. Each episode gives practical strategies for personal growth, productivity, and building a meaningful life. If you want clear direction, better focus, and proven frameworks to win at life and work, this show gives you the tools to get unstuck and move forward.