Quiz Your Money Management Skills

                The International Finance Corporation recently updated their online money management quiz.  See how your answers compare to some basic money management skills.

                1. Which of the following persons probably needs life insurance most?

                An unmarried college student

                A worker nearing retirement age

                A two-salary family with no children

                A widowed worker with a three-year-old child

                 While all of the individuals mentioned may benefit from an insurance policy, the one with the highest need or risk for the future is “A widowed worker with a three-year-old child”.

                2. Making and following a budget promotes which of the following?

                 Credit card debt

                 Deficit spending

                 Reaching goals

                High investment returns

                Again, following a budget will help with all of the options but will have the most impact on “Reaching goals”.

                3. Which of the following is most likely to help a person increase his/her net worth?

                Increase credit card debt

                Purchase a new automobile for cash

                Reduce spending and increase income

                Play the lottery

                We all may wish playing the lottery would solve our financial wows but the best habit is “Reduce spending and increase income”.

                4.  . Which of the following is best to do when you use an Automated Teller Machine (ATM)?   Memorize your Personal Identification Number (PIN).

                Write your PIN on your ATM card.

                Use your phone number as a PIN.

                Make at least ten ATM cash withdrawals each month.

                Memorizing your PIN is the safest choice to avoid identity theft.

                5. Which of the following is an advantage of paying for things with cash rather than a credit card?

                It is easier to buy things over the telephone or on the computer.

                It is easier to keep a record of how you spend your money.

                It is easier to rent a car.

                It is easier to control the amount you spend.

                Control of your dollars is a definite advantage of paying with cash.