According to the 2015 Consumer Financial Literacy Survey by the National Foundation for Credit Counseling, 59% of Americans said they deserve an "A" or "B" when it comes to their own personal financial knowledge. Take this 13-question quiz and test your knowledge.
1. You want to reach a large savings goal - for an expensive vacation, a larger down payment on your next car or a down payment on a house. To maximize your chance of success:
a. Set a dollar goal and a deadline date for saving that much.
b. Save every spare dollar.
c. Devote at least 25 percent of your net earnings to your goal.
e. Ask friends and family.
You're more likely to accomplish concrete goals than vague ones, says Eric Tyson, author of "Personal Finance for Dummies." With well-defined goals, you'll know whether you're on track.
2. What is considered a “good” credit score?
3. Which of the following things hurts your credit score?
a. Having more than two active credit cards.
b. Owing money on your car loan.
c. Applying for three or more loans in one year.
d. Having a revolving credit balance.
4. Which of these is a discount that Farm Bureau Financial Services auto insurance provides?
a. Safe Driver Discount
b. Low Mileage Discount
c. Good Student Discount
d. Loyalty Discount
e. All of the above
Read more about auto insurance here.
5. If you owe $1,000 on a loan and the interest rate you charge is 20% per year compounded annually. If you don't repay any part of the loan, at this interest rate, how many years would it take for the amount to double?
a. Less than 2 years
b. 2 to 4 years
c. 5 to 9 years
d. At least 10 years
6. If you have caused an accident, which type of automobile insurance would cover damage to your own car?
e. Property damage
Read more about auto insurance here.
7. What does residential equipment breakdown coverage from Farm Bureau NOT cover?
c. Air Conditioner
e. Refrigerated items in fridge or freezer
Read more about Residential Equipment Breakdown here.
8. What size of emergency fund is recommended to at least have ready in case of those unexpected situations?
a. 1-3 months of living expenses
b. 3-6 months of living expenses
c. 6 months – 1 year of living expenses
d. 1 – 1.5 years of living expenses
e. None of the above.
At least 3-6 months is recommended, but more never hurts! The ideal emergency savings goal might be as little as three months or as much as two years of expenses, financial advisors say. It all depends on your personal situation.
9. What is life insurance commonly used for?
a. Cover burial and memorial costs.
b. Replace lost income.
c. Pay off debts.
d. Leave a charitable giving legacy.
e. All of the above.
Check out these other Unexpected Uses for Life Insurance.
10. With Farm Bureau Financial Services, if a storm damages your car, home and boat, how many deductibles would you pay to get them repaired?
With Farm Bureau, you can save a bundle by bundling your coverage and have the benefit of only one deductible when multiple covered items are damaged in a single event.
11. True or false: Term insurance can’t be converted to permanent.
Many term policies are renewable and convertible to a permanent policy. After holding your term policy for a set period of time, it may be possible to convert it with a special credit for doing so. The credit helps offset any increase in premium and the usual health assessment may be waived.
12. Ethan's income for last month was $2,350. His monthly fixed expenses were $1,550, and his variable expenses totaled $900. Did he have a surplus or deficit for that month?
c. Neither - he had a balanced account.
d. Both - a surplus in income and a deficit in expense
Here are additional Tips for Keeping Your Spending on Track.
13. According to a report by the Federal Trade Commission, 3 million consumers reported losing money to scams, frauds and identity theft in 2015. What was the most common form of reported identity theft?
a. Tax and wage-related fraud
b. Phone and utilities fraud
c. Bank fraud
d. Credit card fraud
e. Both B & C
Tax and wage-related fraud made up 45% of reported identity theft, followed by credit card fraud at 16%. Did you know identity theft is one of the fastest-growing crimes in the U.S.? With Identity Theft Protection, Farm Bureau can both help prevent fraud and, if the worst happens, provide resolution services.
Read more about Identity Theft here.