Quiz evaluates financial literacy with 13 questions

Many adults lack strong financial knowledge, according to various studies. To help people test their understanding of personal finance, a new quiz has been created. It features 13 questions covering topics like saving, credit scores, and budgeting. The quiz asks how much to save for emergencies, suggesting three to six months of expenses as the right answer. It also explores what percentage of income should go toward housing costs, with 28% being the recommended figure. Participants learn about debt management, with an emphasis on paying off high-interest debts first. Additionally, the quiz explains net income and encourages saving at least 15% for retirement. Questions about credit scores include what constitutes a "very good" score and common misconceptions about their impact. The quiz also covers budgeting methods, particularly the 50/30/20 rule, where people allocate their income into needs, wants, and savings. As participants calculate interest on savings, they find that even small amounts can grow over time. The quiz assesses overall financial preparedness and encourages continual learning. It provides a scoring system to help individuals gauge their financial savvy, from financially savvy (10-13 correct) to needing improvement (0-5 correct).