Can You Beat This Fourth-Grade Financial Literacy Test?

Two-thirds of Americans can’t pass a basic financial literacy test, a number that is increasing. What’s your financial literacy? Find out with our quiz!

Question: What method should you use to come up with a budget?

A. Ask a professional to make one for you.

B. Keep track of your expenses for a few weeks.

C. Decide what to buy on a case-by-case basis.

D. Check how much money you have in your bank account.

Correct! Wrong!

Question: How long should you keep sales receipts?

A. You don’t need to keep them.

B. Until you leave the store.

C. Until you no longer need proof of purchase.

D. Until you’ve entered the expense into your records.

Correct! Wrong!

Question: What’s the best way to grow your money?

A. Make a variety of investments.

B. Get a better job or a raise.

C. Put your money in a savings account.

D. Buy property you can “flip” for more money.

Correct! Wrong!

Question: What is a spending need?

A. Something extremely useful.

B. A valuable item at a great price.

C. Something you need to continue living.

D. Something you’ve set aside money for.

Correct! Wrong!

Financial Literacy

A+

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Budget Keeping Best Practices

What method should you use to come up with a budget?

Answer: Keeping track of your expenses for a few weeks allows you to figure out where your money’s going, what you should spend less on and what you should save your money for. You can use this information to set limits on your spending and set aside money for necessary expenses, like groceries or bills. If you budget effectively within your means, you may even be able to build a little fun money into your budget.

How long should you keep sales receipts?

Answer: Entering your expenses into your expense log is important, but you should also keep receipts on hand for as long as you need to prove you’ve purchased an item. Having a sales receipt makes it easier to return unwanted items and to get rebates from stores and manufacturers. You may also need to keep receipts for tax purposes.

What’s the best way to grow your money?

Answer: Making a variety of investments helps you minimize risk and gives you a more reliable, safer way to grow your money over time. Remember to continue contributing to your investments; the more money you invest, the higher the returns will be.

What is a spending need?

Answer: A spending need is something you need to continue living, like rent for a place to live, food or bills to cover heat, water and other necessities. This doesn’t mean you can’t buy things you don’t need, but you should always make sure to have enough money to cover the things you do need.

Financial Literacy in Early Education

Did you know that the average fourth-grader doesn’t have any financial literacy classes in school? Learn how you can make a difference with the online Master of Arts in School Improvement degree from Campbellsville University.