It’s Financial Literacy Month, and America’s Wealth Coach Deborah Owens joined Roland Martin on NewsOne Now along with a financial literacy quiz to test your knowledge.
The FINRA Investor Education Foundation has found that only 39 percent out of 25,000 adults surveyed answered correctly on four of the five questions in their financial literacy quiz.
Owens called Americans’ level of financial literacy “dismal,” because many of us who think we are financially literate, are not. She told Martin, “What you don’t know can cost you.”
The financial guru said the decisions you make with your finances could be the “difference from you having a quarter of a million in your retirement plan, verses a half a million.”
To help gauge your fiscal knowledge, Owens offered up the WealthyU Financial Literacy Quiz. So, let’s see just how much you know about the “Benjamins,” take the NewsOne Now WealthyU quiz below.
1. What type of mortgage has the least amount of risk and interest charges?
a. 30 Year Fixed
b. 15 Year Fixed
c. 15 Year A. R. M.
2. How much should you contribute to your employer sponsored retirement plan?
a. The amount or percentage your employer will match
b. The maximum allowed
c. 10 percent of your pay
3. What is the best type of Individual Retirement Account?
a. Roth I.RA
b. Regular IRA
4. What type of mutual fund has the best long-term average return?
a. Stock Mutual Fund
b. Bond Mutual Fund
c. Money Market Mutual fund
5. Where should you invest to save for college?
a. Mutual fund
b. 529 Plan
c. Savings Bonds
Watch Roland Martin, financial guru Deborah Owens, and the NewsOne Now panel take the financial literacy quiz in the video clip above.
Answers: 1.) b. 15 Year Fixed 2.) b. The maximum allowed 3.) a. Roth I.RA 4.) a. Stock Mutual Fund 5.) b. 529 Plan
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