Are you financially literate?

Are you financially literate?

Hold up, I'm not trying to insult your intelligence with that title. I came across a statistic recently from to the National Financial Educators Council that I found interesting... the average of everyone who has taken their financial literacy test is 63%. That's not 63% of people who passed, that's the average number of questions people got right on their test. Meaning that roughly 37% of the questions aren't answered correctly. 

 

@nvecsei shared a short financial literacy quiz with me last week that only has six questions. I feel like I did well with five of six questions correct. The question I didn't get was regarding bonds. I had to select "don't know" because bonds aren't an item I have any experience with. Would love to hear how you do on the quiz and which questions (if any) you missed. Knowing where the gaps are would help me know what areas we can target to help spread knowledge and understanding. I know we have a few of the competitive type in the community - will @seichmann8 continue his reign or will @KimberlyThomson take the top spot? (I kid!)

 

I also feel like another piece of financial literacy is taking the time to get educated on various life changes that may happen and how you can plan even for the unexpected. @csquires recent blog article "Let’s Talk (Wait, This Is Important)" touched on some of the many discussions you can have with a financial professional. When you think on the scale of your lifetime there's so much to know, so take advantage of the knowledge sitting across the desk and ask questions that can help you plan for the future. Chase shares several examples in his article, check it out! 

 


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Janice James - W+H Community Manager
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My goal is to connect people who share a passion for staying well and building wealth to ensure healthy, comfortable futures. Let me know how I can help!
10 REPLIES 10

Re: Are you financially literate?

Thanks for posting this article. I got 5 out of 6 on the quiz. I missed the bonus question about not paying off a loan and the compounding interest.

Re: Are you financially literate?

Interesting @pparr! Thanks for sharing the question that you missed, it helps to know areas we can target for information on the wealth side. Compounding interest means you earn interest on your interest returns! Written out it sounds pretty confusing but I found this Money101 article from Time that explained it simply (I need simple!) & well. 

 

 

Did you receive any education on finances/financial acumen growing up? If you did/didn't, do you think it helped/would have helped you in adulthood? 


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Janice James - W+H Community Manager
Get started in the community.

My goal is to connect people who share a passion for staying well and building wealth to ensure healthy, comfortable futures. Let me know how I can help!

Re: Are you financially literate?

Yes, I was fortunate to receive financial advice growing up. My father worked in investments all his life. When I was younger, I thought he went to work each day to buy "chairs." It was not until I was a little older that I was educated on "shares." Everything really made much more sense after that. He helped me all my life with my 401(k) and other investments. I really feel that I was at an advantage having a father who was able to teach me this information. He also instilled the importance of living within your means - another very important lesson.

Re: Are you financially literate?

I LOVE that story @pparr! It's awesome you had that kind of support from family and the wealth of knowledge I am sure your father imparted. Also, what a great life lesson on living within your means. There has been controversy lately around that very topic this week after Tim Gurner, an Australian property mogul, was quoted in a Time article basically stating that that spending money on frivolities like smashed avocado toast are habits that lead to not being able to afford bigger purchases, like a home. While I don't agree with the way his point was stated (it doesn't take into account wage stagnation and thus inability to keep up with rising housing costs), it does tie in overall to the point that we need to be conscious about our spending habits and, as your father taught you, live within our means. 


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Janice James - W+H Community Manager
Get started in the community.

My goal is to connect people who share a passion for staying well and building wealth to ensure healthy, comfortable futures. Let me know how I can help!

Re: Are you financially literate?

Well, let's just say I didn't get the score I'd hoped for. @KimberlyThomson may have me on this one. @Janice and @pparr, well done!

Re: Are you financially literate?

I scored a 5 out of 6. 

 

My problem is that I know what to do and how to do it but shiny new things are nice! Retire or buy race car? Smiley LOL

Re: Are you financially literate?

Why not both @Jotun? My firm philosophy is PAY YOURSELF FIRST though! That race car isn't going to pay the bills once you retire. Smiley Happy


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Janice James - W+H Community Manager
Get started in the community.

My goal is to connect people who share a passion for staying well and building wealth to ensure healthy, comfortable futures. Let me know how I can help!

Re: Are you financially literate?

6 of 6! Woo!

 

I thought I had taken this months ago, when you all did, but I must not have published my results. 

 

Fun questions. I love stuff like this! Thanks, @Janice!

Re: Are you financially literate?

Same thing for me, I could feel the LOMA classes going to work as I looked at all the questions, but I apparently don't remember much from my calculus class! Smiley Wink