Only 57% of American adults are financially literate, according to a survey by Standard & Poor’s. Without a basic understanding of financial concepts, people are far more likely to make poor decisions regarding their money.
This knowledge is arguably more valuable than ever, as tools and products that can significantly improve your financial situation are so easily accessible. Yet without a proper understanding of how they work, let alone that they exist, they’re rather useless.
To gauge your knowledge of all things money, we put together a quiz that asks: What is your financial IQ?
Between securing a loan, buying a car, saving for retirement, and much more, AAA is here to help you with all your financial needs. Learn more about all the products and services available to members.
So, what is your financial IQ? Share your quiz results in the comments.
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The compounding interest question is ambiguous.
“If you deposit $100 and it earns 5% compounding interest each year …” You’ll have $110.25 at the end of the second year! So, will you have $110? True or False?
I took the quiz, hit ‘Submit’, looked through the answers, and confirmed that I had answered all the questions correctly. I scored 95%! ???????????????????????
I think the bond question needed better clarification. Were you speaking of investment bonds or savings bonds. If savings bonds, which type? For some savings bonds, the price remains the same, but the value changes.
What score is considered passing and thus considered “financially literate”?
This was interesting. I’m looking forward to the answers.
I learned a few things just by taking this quiz. Thanks for providing it!
We should all know this important information
The answer for “Checking your credit report lowers your credit score. ” is debatable; I have recently received a credit report stating that one of the factors lowering my score is that there were too many requests for reports (~3 in one year, two of them from banks considering mortgages). It may be that the score is affected only by other people asking, but the question doesn’t say this. (89% with this “error” — I also forgot that SSI can be started at a lower level at age 62, which I’m well past.)
Great quiz, I received an 89% Not great but not half bad!
Thank you for sharing.
Fun
please send the results of my test.
Hi Elizabeth, thanks for taking the quiz! After you answer the questions and hit submit, your score will appear. You’ll also be able to look through the quiz to see the correct answers.
Where are the answers
Hi Suzanne, after you hit submit you can look back through the quiz to see the correct answers. They will have a green check mark next to them. Thanks for taking the quiz!
Anxious to see my score
Hi Pat, when you hit submit, your score should be displayed. Hope that helps and thanks for reading!
Hi Pat, thanks for taking the quiz. Once you answer the questions and hit submit, your score will pop up. You’ll also be able to look through the questions to see the correct answers.
Interesting
No comment
thank you
Thank you
got three wrong; the net income question because I am an accountant and net income to me is after expenses; the heating question because while I live in the northeast I was thinking about nationwide and not everyone uses heat or cooling but everyone uses hot water; and the credit question about length of history because I thought that negative info goes away after 7 years.
Also with regard to the Social Security question, when I started to collect, the early retirement age was 60, not 62 as it is today.
Social Security answer is wrong, or the question is poor. Widows may collect at 60. In fact, disabled may receive way earlier but I took the youngest choice offered.
Fun!
what was the average score?
I got 84%!
I did, too!
This question’s answer is incorrect: “You’re entitled to one free credit report every 12 months from each of the national credit reporting bureaus.”
As part of COVID, the bureaus all allow a free weekly report.
So what about their answer is incorrect? If they all allow free reports weekly that covers the free yearly requirement in the question.
The entire thing is incorrect: you’re not entitled to “one free credit report every 12 months”, it’s now entitled to 1 free credit report every week (so 52 a year). That’s completing misleading.
I really didn’t know some of the answers to the questions in the quiz, and I listen to the financial shows on the radio too. It’s funny what you can learn from taking a quiz like this.
How did I do?
Hi Nancy, after you click submit, your score will pop up. Thanks for taking the quiz!
What are my test quiz results and what are the right answers
Hi Suresh, when you hit submit, your score will pop up. You’ll also be able to look through the questions to see the correct answers. They will have green check marks next to them. Thanks for reading!
It seems that every time I entirely pay off my credit card debt my score drops by 10 to 25 points even though I pay down my mortgage principle at approximately ten times whatever any credit card debt that I have incurred . When I ask the credit agency (one of the top three) they reply that that is what the algorithm indicates.
I have yet to receive a response from either the agency mathematicians who created the algorithm, nor the IT personnel who check the algorithm for accuracy. Any mathematician or IT personnel out there have the answer?
It may be because you did not use the credit card for more than a year. Part of your credit score is based on paying on time. If you have a credit card, use it at least once a year and pay it off right away. It not only keeps you score from going down, but increases your score because you paid on time (creating data for scoring) and paid more than the minimum.
Where are the answers ?
I’m trying to figure that out also
Hi Maria, after you hit submit you can look back through the quiz to see the correct answers. They will have a green check mark next to them. Thanks for taking the quiz!
Thank you so much. I redid it
Where are the correct answers?
Hi Tom, after you hit submit you can look back through the quiz to see the correct answers. They will have a green check mark next to them. Thanks for reaching out!
Hi James, after you hit submit you can look back through the quiz to see the correct answers. They will have a green check mark next to them. Thanks for reading!
95%
Your question about social security benefits should specify that you are asking about SS retirement benefits (to exclude disability or survivot benefits).
Exactly! I started collecting social security at 60!
And got the answer wrong
I also started collecting as a surviving spouse at age 60 – the question should be collecting “on your own record” – as it is stated, 60 is the correct answer.
Your question on what is net income needs to clarify that you are speaking about personal income; it is confusing for those who actually understand accounting since net income is a GAAP term and those of us who invest understand it in a different way.
Thanks for clarifying. It was the only question that I got wrong!