You probably know that being financially literate is important, but you may not know how financially literate you are.
Being financially literate means having an essential understanding of how you manage your money, including budgeting, saving, spending, and investing. It also means having an understanding of how the economy can affect your personal financial situation.
No matter how much you already know about money, everyone has room to learn more. Take Stash’s financial literacy quiz to find out where you stand on some basics:
Do you know what the current rate of inflation is in the U.S., as measured by the year-over-year Consumer Price Index (CPI)?
As of February 2022, the CPI was 7.9% year-over-year, the highest rate of inflation since 1982.
Say you have a savings account that earns a yearly interest rate of 2%, and the inflation rate is 3%. Would your money be able to buy more, less, or the same after one year?
If the inflation rate is higher than your interest rate, your money will lose value in that account.
What is considered a perfect credit score?
A credit score can range from 300 to 850. The better your credit, the higher your score. Perfect credit is 850.
You purchase 1,000 in shares of a company. For the most recent quarter, that company is paying shareholders $0.25 per share in dividends to shareholders. How much will you receive in dividends?
Dividends are shares of a company’s profits, which are paid to its shareholders in proportion to the number of shares they own. To find the dividend amount, take the dividend per share amount and multiply by the number of shares.
You have an employer-sponsored 401(k) plan. Your employer has said it will match up to 3% of your pay in 401(k) contributions per year. What amount would that be the max employer match if you earn $75,000 annually?
If you earn $75,000, and your employer matches up to 3% of your 401(k) contributions, your employer will contribute up to $2,250 per year.
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