What do you know about money?
Just enough to pay the bills? Are you puzzled at where all your money goes each month, or are you confident about the financial decisions you make?
April is Financial Literacy Month, a perfect time to reflect on your money knowledge — and build upon it.
Financial literacy, by definition, is understanding essential financial concepts and having the knowledge and skills to use money in a positive and effective way.
NEFE passed the responsibility for promoting Youth Financial Literacy Day over to the Jump$tart Coalition, a national nonprofit dedicated to improving financial literacy. In 2000, the coalition expanded the one-day awareness to a month-long celebration. It later dropped the “youth” label, and Financial Literacy Month became a time for Americans of all ages to reflect on financial literacy.
In 2004, Congress passed a resolution designating April as Financial Literacy Month.
Although we, at The Penny Hoarder, want folks to learn more about money year round, we hope you’ll spend some extra time this month brushing up on your financial knowledge. You can start here!
6 Stories to Read During Financial Literacy Month
Check out the following articles to learn more about financial literacy and basic money concepts. Then test your knowledge with our financial literacy quiz.
Uncovering America’s Financial Literacy Problem
If you know enough about money to get by, you may be wondering what’s the big deal about financial literacy.
Having a solid grasp on money concepts can have a real impact on your household’s financial bottom line — which is exactly why we champion increased financial literacy this month.
Give the Next Generation the Gift of Financial Literacy
Financial Literacy Month is no longer just targeted to young people, but they stand to learn a lot about personal finance.
Be the Boss of Your Money
Stop letting money slip through your fingers. Tell it what to do… with a budget.
Become a Super Saver
Putting aside some of your income is great, but knowing how to accelerate your savings growth is even better.
Get a Handle on Your Credit Score
Your credit score is like a grade for how responsible you are when borrowing money. This score comes into play when you apply for a credit card, get car insurance and buy or rent a home — so it’s pretty important.
Test Your Money Knowledge With Our Financial Literacy Quiz
1. True or false:
Learning financial literacy from an early age generally leads to earning more and saving more as an adult.
2. Children can learn about money management by:
A. Using money jars for spending, saving and giving.
C. Comparing the prices of items in the toy aisle.
3. Which of the following is an example of a budgeting method?
4. Having a budget can help you with all of the following except:
A. Reducing frivolous spending.
C. Negotiating your salary.
D. Reaching your financial goals.
5. True or false:
Personal finance is a required course at 87% of high schools nationwide.
6. Credit scores range from:
7. When it comes to your credit score, this is the factor that matters most:
A. How much credit you qualify for.
B. The number of credit cards you have.
C. Making your debt payments on time.
D. Having a diverse mix of credit accounts.
8. Compound interest is:
B. What you get when you multiply the principal amount by the interest rate.
C. When your interest rate changes throughout the duration of the loan term.
D. Another term for simple interest.
9. This investment vehicle uses pre-tax dollars to grow your money:
10. A fractional share:
A. Pays dividends 50% less often than whole shares.
B. Is only for minors who want to start investing.
C. Requires you to diversify the money you invest.
D. Makes it easy to invest small amounts of money.
(1) True (2) D (3) A (4) C (5) False (6) B (7) C (8) A (9) B (10) D
You’ve got 8-10 correct answers: You know your stuff! Hopefully you’re applying that financial knowhow in real life to build wealth. Join The Penny Hoarder Community to share your best money tips with others.
You’ve got 4-7 correct answers: You’re growing your money knowledge. Try to hone in on what stumps you the most. Credit and investing can be tricky. If you’ve got a personal money dilemma bothering you, send your questions to Dear Penny — our financial advice columnist — for some wise feedback.
You’ve got 0-3 correct answers: You’re in need of a financial literacy boost. Fortunately, The Penny Hoarder has tons of articles covering a variety of personal finance topics. Follow our social media pages (you can find us on Facebook, Twitter and Instagram) for frequently shared articles and money tips.
Nicole Dow is a senior writer at The Penny Hoarder.
This was originally published on The Penny Hoarder, a personal finance website that empowers millions of readers nationwide to make smart decisions with their money through actionable and inspirational advice, and resources about how to make, save and manage money.