Financial Literacy Quiz

What percentage of Americans live paycheck to paycheck?

• 80%

• 50%

• 62%

• 75%

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

• Six months of living expenses

• Three months of living expenses

• Two months of living expenses

• One month of living expenses

Which of the following is a characteristic of a spender?

• Likes spending on themselves and others

• Avoids spending on non-essentials

• Hesitant to make purchases

• Enjoys saving money

What is a personal profit and loss statement used for?

• Calculating taxes

• Planning a vacation budget

• Understanding personal income and expenses

• Tracking business revenue

What is the main reason for tracking personal expenses?

• To understand where money is going

• To avoid paying taxes

• To impress others

• To increase spending

What is the benefit of understanding how you produce income?

• It enables brainstorming ways to increase income

• It allows for better investment decisions

• It simplifies tax filing

• It helps in reducing expenses

What is the effect of compound interest on investments?

• It decreases the value of investments over time

• It has no effect on the growth of investments

• It allows investments to grow exponentially over time

• It only benefits short-term investments

Which of the following is a high-value skill mentioned in the video?

• Cooking

• Sales

• Gardening

• Painting

What is the key to becoming a great investor according to the video?

• Investing large sums of money

• Investing in real estate only

• Avoiding all risks

• Investing consistently and starting early

How does money create more money according to the video?

• By being spent quickly

• Through regular withdrawals

• By being saved in a bank

• Through compound interest