Financial Planning and Savings Priorities Quiz

What is often considered the biggest financial goal for most people?

• Paying off student loans

• Saving for retirement

• Starting a business

• Buying a house

Why is it important to contribute to your company's retirement plan?

• To avoid paying taxes

• To increase your salary

• To qualify for a company bonus

• To get matched funds from the employer

What type of debt should be prioritized for repayment due to its high cost?

• Mortgage debt

• Car loans

• Federal student loans

• High-interest credit card debt

What is the recommended amount to save in an emergency fund?

• Three to six months of expenses

• Two years of expenses

• One year of expenses

• One month of expenses

What is a Health Savings Account (HSA) used for?

• Paying for gym memberships

• Buying health insurance

• Saving for a vacation

• Covering out-of-pocket medical expenses

What is a 529 plan designed for?

• Medical expenses

• Educational expenses

• Retirement savings

• Emergency funds

Why might investing in riskier assets like stocks not be suitable for short-term goals?

• They have high fees

• They are not tax-deductible

• They may not recover from market downswings in time

• They require a financial advisor

What is a key principle to remember when planning for financial goals?

• Prioritize retirement savings

• Avoid using tax-advantaged accounts

• Focus on short-term gains

• Invest only in real estate

What percentage of your income is commonly recommended to save for retirement?

• 20%

• 15%

• 5%

• 10%

What should you do if you have already reached your primary savings goals?

• Stop saving

• Invest in high-risk stocks

• Continue investing regularly

• Spend on luxury items