Business
There was a time in my life where I had over $30k in student loan and credit card debt. I used to use my ATM receipts to balance my checking account. I would get in stupid arguments about money with my girlfriend, now my wife. I can remember one argument where I wanted to buy a new TV using a zero percent credit card. She lost it. That was a pivotal moment and I had to make some tough decisions. Was I going to continue down this path of financial destruction? This path where I didn’t understand personal finance. Was I going to change and be better? Start learning the principles of how interest works, how to invest, how financial tools work? I am thankful that I made the right decision. I committed to understanding the basics. The basics are what you need to build wealth. I came across a study done by CNBC on basic money skills. Only 3% of Americans could answer the 6 basic money questions. I want you to take this quiz with me. Many of you may feel that you don’t need to know this stuff or that it is too hard to understand. ❌ The truth is, it’s not hard and you need to understand it if you want to change where you are right now. If you are ready, get pencil and paper and let’s take this quiz: ➡️ 1. Is a 401K a Tax Credit for retirement? True or False ➡️ 2. Which of the following best describes APY? A. Adjusted prices for inflationB. Annual rate charge for borrowing or earned by an investmentC. Annual rate of return accounting for compounding interestD. Annualized principle payment amountsE. Annuity payout per yearF. Automated payment ➡️ 3. Your income does not impact your credit score? True or False? ➡️ 4. What does a CD offered by a bank stand for? A. Capital defermentB. Certificate of depositC. Collateral defaultD. Collateralized discountE. Commodity dividendF. Credit dividend ➡️ 5. What is the difference between a checking account and a savings account? (Select all that apply) A. Only savings accounts earn interestB. A savings account can’t be used for automatic bill payC. Only checking accounts have overdraft feesD. You can only transfer money from checking accounts to savingsE. Checking accounts are designed for regular useF. Savings accounts are designed for investing long term ➡️ 6. What are the three major credit bureaus (this applies to U.S. only) A. Capital One; Bank of America; JP MorganB. Deloitte; KPMG; Ernst & YoungC. Fannie Mae; Freddie Mac; Sallie MaeD. FICO; Moody’s; FitchE. Transunion; Equifax; and ExperianF. Visa; Mastercard; and American Express Those are the six money questions that only 3% of Americans got all questions right. This will help to show you what you need to work on. Where to invest your time. Do you need to read more, open investment accounts, or going into your bank and asking questions? Let me know in the comments how you did. How many did you get correct? ✔️ Take this quiz, share it with your friends and see how they do and help to empower them. Let’s see how many of these questions you got correct. ???Answers??? 1. False2. C3. True4. B5. E & F6. E