Quiz: How Financially Savvy Are You?

Since April is just one day away I thought I’d give you more information about what makes this month so special.

April is known for several monthly observances and celebrations.

Did you know April is: National Garden Month, National Poetry Month, Physical Wellness Month, Stress Awareness Month, International Guitar Month and even Tackle Your Clutter Month?

I’d like to add one more observance to the list. April is also the official National Financial Literacy Month.

Many may feel they have a good grasp on their personal financial literacy; however, it’s always prudent to have a quick refresher.

If you’re up for the challenge, below you will find a quiz that will test your personal financial knowledge. Depending on your score, you’ll know if you’re financially savvy or need to spend a little more time learning the basics.

All answers are either True or False.

Good luck!

Amber

Tax Questions:

With tax time just around the corner, now’s the perfect time to brush up on the rules.

You can take an IRA deduction for the amount you contributed to a 401(k) plan last year.

You can make a contribution to a SEP-IRA and a Roth IRA.

You must complete a rollover distribution from a retirement plan to an IRA by the 60th day following the day on which you receive the distribution.

The IRS does not allow a split refund. Your refund must go to one account with a U.S. financial institution.

Interest payments on your personal credit card are deductible.

If you live on a boat, you have to declare your income for federal tax purposes.

Credit & Debt Questions:

A debt-to-income ratio of 36 percent or less means your debts are out of control.

Your age and where you live are factored into your FICO score.

Your payment history and the amounts owed comprise a combined 65 percent of most FICO scores.

To qualify for the best rates, your FICO score should be in the mid 600s.

The fastest way to pay off multiple credit card debts is to pay the credit card balance with the lowest interest rate first.

You’re almost finished …

With the new CARD Act of 2009, credit card companies can only impose interest charges on balances in the current billing cycle.

Insurance:

Term life insurance policies are available for a set period of time, usually up to 20 years.

Permanent life insurance policies are available at a higher premium, but stay in force until the policy owner reaches 60 years of age.

For the quiz answers click here:

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