The Most Important 3-Question Financial Literacy Quiz

financial literacy-Institution Enterprises

Institution Enterprises-financial literacy

Most college educated Americans can’t ace this test about money…CAN YOU?

Understanding “money” is a valuable skill that does not get much attention in school. Most high schools don’t teach students simple accounting or the power of “interest”. Even in college, these topics are generally reserved for those in Business school.

But we all need and spend money, so shouldn’t we all be taught some important basics about it?

This short, 3 question quiz will evaluate your general understanding of “money” in 3 general fields. Your results will tell you one of two things:

  1. You have above average understanding of money
  2. You have an average, or possibly below average understanding of money

Ready to get started??

Welcome to your Money Smarts quiz!

This is a financial literacy test that was designed about 10 years ago by a couple of Business School professors. It was designed to measure the ability of populations to be "effective economic decision makers". GOOD LUCK!!

1. 

Suppose you have $100 in a savings account, and the interest rate was 2% per year. After five years, how much do you think you would have in the account if you left the money to grow?

2. 

Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, how much would you be able to buy with the money in this account?

3. 

Is this statement TRUE or FALSE?

Buying a single company's stock usually provides a safer return than a stock mutual fund.

Why does this matter?

Research has shown that the better you understand money, the more likely you will be to make smart financial decisions and accumulate wealth. Financial literacy is not just for the “well off” or privileged crowd. It is for all of us!

It is never too late to learn

The good news is that it is NEVER too late to start improving your money smarts and make smart financial decisions that improve your ability to make more money! This test is especially important for high school and college age people, because the more they understand at an early age, the better prepared they will be as they enter adult hood.

Get money smart today!

This quiz should have given you some insight on areas you might be able to improve in financial literacy. I think we can all agree that the better we can understand money and markets, the more we can make them work FOR us. This applies to your personal life, as well as to your business or professional life. Ready to start improving? HIT US UP today!

“We do it with you, not for you”

Institution Enterprises provides a new standard in business consulting and education, helping your start-up or seasoned business design the practices and customs for success in today’s marketplace.

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