Everybody loves quizzes! Except pop quizzes on A Tale of Two Cities in high school when I never cracked open the book. You can learn a lot from a quiz, and this one is all about how you handle your money. Pick your answers honestly and sum up your points using the Answer Key.
Take the Money Quiz! How Well Are You Handling YOUR Money?
1) When you find something you like that isn’t a necessity, you:
a) You glance once or twice but decide you can live without it.
b) You go home and think about it before you’ll consider going back to buy it.
c) You carry it around the store for at least an hour so that you can get used to the idea of owning it.
d) You hold it to your bosom and race to the counter, credit card in action mode.
2) Your car payment is approximately:
b) 10% of your income
c) 25% of your income
3) You spend less than you make every month:
b) True, 80% of the time
c) What, so I’m not supposed to have any fun now?
4) When should you make your last will and testament?
a) It’s all good, I wrote one on some lined paper back in middle school about who would get to inherit my future riches.
b) Don’t need one, I’m in debt and my 401(k) only has $5K in it.
c) I’ll make it after I have kids.
d) I can’t make one because I don’t want the government to know what I have.
e) As soon as possible.
5) Which of the following people really should be using a credit card?
a) An unemployed college student who gets $100 spending money from his parents each month and that’s supposed to somehow pay for everything.
b) A working single mom who needs to pay for her car repair to get to work.
c) A CPA who travels a lot for his work and is very responsible about paying all bills in full each month.
d) Teresa Giudice from the Real Housewives of New Jersey so that she can maintain her extravagant lifestyle (in order to sell her cookbooks) and make up for being cross-eyed on camera.
6) Should you save money even when money is tight? Like really tight, not sure if you’re going to be able to make rent tight?
7) On average, do people spend less when carrying a debit card or when carrying cash?
a) You’ll spend less with the debit card.
b) You’ll spend less with cash.
8 ) How do you invest in your 401(k) or other retirement accounts?
a) I don’t have any retirement accounts.
b) I just make automatic contributions and pick mutual funds using a dartboard.
c) I review my choices every quarter, and reinvest as long as they are no-load funds or I can choose individual securities.
9) When you’re ready to start reading some financial investment literature, who are you going to turn to? (Choose all that apply)
a) Suze Orman
b) George Soros
c) Dave Ramsey
d) Jim Cramer
e) Benjamin Graham
Answer Key: Add up your total points
1) a) 0 points b) 1 point c) 2 points d) 3 points
2) a) 0 points b) 1 point c) 2 points d) 3 points
3) a) 0 points b) 1 point c) 2 points
4) a) 2 points b) 2 points c) 2 points d) 1 point e) 0 points (I like option d but actually everyone should make a will, and update it after major life changes.)
5) a) 1 point b) 1 point c) 0 points d) 2 points (Look, the CPA has some spreadsheet where he calculates all his points and rewards and never pays a cent of interest, so he’s proven himself trustworthy enough to handle a credit card.)
6) a) 0 points b) 1 point (It’s true. You should save, even if it’s just $5/paycheck. It’s a mental thing too.)
7) a) 1 point b) 0 points (Read this article.)
8 ) a) 2 points b) 1 point c) 0 points
9) a) 5 points b) 0 points c) 1 point d) 2 points e) 0 points (Sorry, but if Suze Orman is allowed anywhere near your finances, you can’t be financially competent. And if you somehow are rich even with listening to her advice, just imagine how much richer you could have been without her!)
(0-3 Points) Financially Competent: Wow! Are you sure you didn’t sneak a peek at the answers? You have a good head on your shoulders when it comes to handling your money. If you are saving 10% of your money and using 20% to pay back debts (if any) and living on the other 70%, you are on the path according to the Richest Man in Babylon! Continue your sound practice and making conscious choices to live within your means. Begin researching what kind of business or investment would make sense for you, and would be something you are interested in.
(4-8 Points) Mildly Clueless: Ok, don’t worry. You just need a little awareness in your financial situation. It’s not hopeless because there are a lot of easy things you can do to change your path financially. Start with the basics by checking out Dave Ramsey and George S. Caslon.
(9 points +) Hybrid of Gob Bluth and Brick Tamland: Hopefully you were just joking when you picked your answers. Maybe you could retake it and see where you land? If you end up in the same category, I am not sure you really meant to land on a site about debt reduction. Or maybe you were thinking reduce debt to allow more room to re-create it?