What do you know about money
Just enough to pay the bills? Are you confused about where all of your money is going each month or are you confident about the financial decisions you are making?
April is financial literacy month, a perfect time to reflect – and build on – your money knowledge.
By definition, financial literacy means understanding key financial concepts and having the knowledge and skills to use money positively and effectively.
The Financial Literacy Month evolved from the Youth Financial Literacy Day, a day of awareness given by the National Foundation for Financial Education (NEFE) over two decades ago.
NEFE transferred the responsibility for promoting Youth Financial Literacy Day to the Jump $ tart Coalition, a national not-for-profit organization dedicated to improving financial literacy. In 2000, the coalition expanded one-day awareness to a month-long celebration. The label “youth” was later removed, and Financial Literacy Month became a time for Americans of all ages to reflect on financial literacy.
In 2004, Congress passed a resolution making April Financial Literacy Month.
While at The Penny Hoarder we want people to know more about money all year round, we hope that you spend a little more time this month brushing up on your financial knowledge. You can start here!
6 Stories You Should Read During Financial Literacy Month
Read the articles below to learn more about financial literacy and basic money concepts. Then test your knowledge with our quiz on financial literacy.
Exposing the American problem of financial literacy
When you know enough about money to get away with it, you may be wondering what the big deal with financial literacy is.
The Penny Hoarder conducted a survey of more than 1,500 adults in 2019 and found that those who lacked financial literacy earned less income and saved less money than those who discussed money issues at home or at school.
A solid understanding of money concepts can have a real impact on the bottom line of your household’s financial results – which is exactly why we’re advocating better financial literacy this month.
Give the gift of financial literacy to the next generation
Financial Literacy Month is no longer just for young people, they learn a lot about personal finances.
If you are a parent (or have nieces, nephews, grandchildren, or other children in your life), take the time to teach your children how to be smart with money. Here is Our guide to teaching kids about money management.
Once they know these basics, improve the lessons and teach them how to build wealth. Use this clever tricks to get your kids excited about investing.
Be the boss of your money
Stop letting money slip through your fingers. Say what to do … on a budget.
A budget is your blueprint for how you plan to use your hard earned money. Here is a Step-by-step guide to budgeting your money.
Become a Super Saver
Setting aside some of your income is great, but knowing how to accelerate your savings growth is even better.
Money that earns compound interest results in more savings than just tucking cash under a mattress. But What is compound interest and how does it work?? We explain.
Get a grip on your credit score
Your credit score is like a note of the responsibility that you are in borrowing money. This score comes into play when you’re applying for a credit card, getting car insurance, and buying or renting a home – so that’s pretty important.
So how can you get a good credit score? This Five factors are important when it comes to your bankroll.
Test your financial literacy with our financial literacy quiz
1. Right or wrong:
Learning financial literacy at a young age generally results in making more money and saving more as an adult.
2. Children can learn about money management by:
A. Using money jars to spend, save, and give.
B. Have an allowance.
C. Compare the prices of items in the toy aisle.
D. All of the above.
3. Which of the following examples is a budgeting method?
A. The 50/30/20 method.
B. The snowball effect.
C. The even-odd method.
D. The hexagon method.
4. A budget can help you with all of the following except:
A. Reducing frivolous expenses.
B. Pay bills on time.
C. Negotiate your salary.
D. Achieve your financial goals.
5. Right or wrong:
Personal finance is a compulsory course in 87% of high schools across the country.
6. Credit scores range from:
A. 0 to 100
B. 300 to 850
200 to 600 ° C.
D. A to F.
7. When it comes to your creditworthiness, the most important factor is:
A. How much credit do you qualify for?
B. The number of credit cards you have.
C. Make your debt on time.
D. A diverse mix of credit accounts.
8. Compound interest is:
A. Interest on Interest.
B. What you get when you multiply the principal by the interest rate.
C. If your interest rate changes during the life of the loan.
D. Another term for simple interest.
9. This investment vehicle uses pre-tax dollars to grow your money:
A. Roth IRA
B. 401 (k)
C. 407 (b)
D. 529 plan
10. A fraction of the proportion:
A. Pays dividends 50% less than whole stocks.
B. Is only for minors who want to start investing.
C. Requires that you diversify the money invested.
D. Makes it easy to invest small amounts of money.
(1) Right (2) D (3) A (4) C (5) Wrong (6) B (7) C (8) A (9) B (10) D.
You have 8-10 correct answers: You know your way! Hopefully you will apply this financial expertise in real life to build wealth. To join The Penny Hoarder Community to share your best money tips with others.
You have 4-7 correct answers: You expand your knowledge of money. Try to find out what dulls you the most. Credit and investing can be difficult. If you have a personal money dilemma that bothers you, Send your questions to Dear Penny – our columnist for financial advice – for a wise feedback.
You have 0-3 correct answers: You need a financial boost. Fortunately, The Penny Hoarder has tons of articles on 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 article originally appeared on www.thepennyhoarder.com