Test Your Money Smarts

[veremchuka]

I stumbled across this quiz in an Allan Roth column Avoid Money Problems by Age-Proofing Your Finances - AARP. So out of curiosity I took it because Allan said

I took the quiz and aced it. But I'm a financial planner, and, at 56, I'm at the peak of my financial competency, according to a study based on this quiz by Michael Finke and Sandra Huston of Texas Tech University and John Howe of the University of Missouri-Columbia. Financial-acuity scores drop by about a percentage point every year after age 60, the study finds.

and gee whiz I got 15 out of 16 correct. I only spent the time it took to read the question and answers, IMO all the answers were obvious. Am I as smart as Allan? Probably not but I wonder if anyone thinks these questions are hard?

The one that tripped me up was #8 and I did think about it for a while. I was uncertain but based upon my analysis of the question and possible reasons for the correct answer I guessed and it was wrong. OK I'm not perfect!

How did you do?

Test Your Financial Knowledge and Compare With Others Your Age - AARP

 

[youbet]

Fun!

All correct.

 

[Sue J]

16 out of 16. Easy enough for anyone who reads this forum, reads Kiplinger or Money magazine or watches Suze.

I saw my score and all the Q and As at the end but not how my score compares with others my age.

 

[razztazz]

Whoo hoo! I got 16 out of 16. I did have to guess a little on #8 because unlike that big bald guy who ran for president a few years ago and Fonzie I know nothing about reverse mortgages

 

[ERD50]

Pretty basic - I can see getting tripped up on #8, I thought about it and could have justified the 'wrong' answer, but got it right for 16/16.

-ERD50

 

[Walt34]

I too missed 8 because I figured the lender would be looking at the worst-case scenario of a rate hike immediately after the loan was issued and base the lending criteria on that. I forgot how short-sighted they are.

 

[Bikerdude]

Either the quiz was really simple or I'm really smart. 16 for 16. OK, bring on the snide remarks.

 

[gozer]

16 out of 16. I think most denizens of this site will find it fairly easy.

 

[braumeister]

I only got a couple right. But I don't have to worry about financial stuff since my advisor got me fully invested in a long-term variable annuity indexed to leveraged Venezuelan beaver cheese futures.

 

[Bikerdude]

Venezuelan beaver cheese.

Probably goes good with beer.

 

[Ready]

Nice test. Got them all right. I tried the retirement quiz though and got 4 of them wrong. I guess I'm not an expert on retirement yet!

 

[gcgang]

Got 16.
But only got 5/10 on Social Security.

 

[jfn111]

16 out 16

 

[kyounge1956]

I missed #15. I've never had to choose a life insurance policy, and don't know one kind from another.

 

[ERD50]

I too missed 8 because I figured the lender would be looking at the worst-case scenario of a rate hike immediately after the loan was issued and base the lending criteria on that. I forgot how short-sighted they are.

That's where I was going too. But then I wondered if they were just figuring based on interest rates and current payment, and a fixed is usually cheaper, so that influenced me. Could have gone the other way just as easily.

Either the quiz was really simple or I'm really smart. 16 for 16. OK, bring on the snide remarks.

No snide remark required, I think BOTH are true ( aside form #8, which I don;t see as 'hard' just how you view it) . At least that's my story.

-ERD50

 

[scrabbler1]

I scored 14 of 16. Two of the insurance questions at the end got me. I do not agree with #14's answer, as I valued the answer I made over the one it said was "correct." Number 15 I had no clue whatsoever, being that I am single with no kids.

 

[Dreamer]

I aced it also. I kept worrying that the questions would get harder and I would not know what they were talking about. It was easy.

 

[Major Tom]

15/16. I goofed on the question about the different types of life insurance (whole life, universal life, and renewable term). I have never bought life insurance, so know very little about it.

 

[pb4uski]

100%

 

[sengsational]

It never asked how old I was, so doesn't know how old I am, so can't "compare to others my age". I got 'em all, but had warning to burn a bit of sawdust on 8.

 

[foxfirev5]

Too easy. I'm afraid the test results would give some people a false sense of confidence regarding their financial prowess.

 

[UkGP51]

16/16 I'm from UK and I don't even need to know the difference between 410 and Roth etc. might need to spend more time looking at UK appropriate investment advice?!...

 

[Closet_Gamer]

16/16. Thought some of the questions were worded strangely tho.

 

[misty57]

I got 100%, but I too think the quiz was pretty easy. I hesitated on the car loan question as we've never had one.

I'd like my DH to take the quiz. I'm really concerned about him and don't know how he'd score. I've done all of the money management throughout our lives, including retirement investing. I've put together a "look at this in case I die" binder, but that just tells him what we have and where it is.

 

[donheff]

I too missed 8 because I figured the lender would be looking at the worst-case scenario of a rate hike immediately after the loan was issued and base the lending criteria on that. I forgot how short-sighted they are.

I did the same mental gymnastics. I should have remembered that I always over-think easy questions. It didn't help that I hadn't looked at mortgages in decades.