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How Well Do You Know Money?

As part of Financial Literacy Month, we're answering some common questions people have about finances. Can you get 10/10 on this financial literacy quiz?

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  1. 1.

    In 2011, the average percentage of income Canadians saved was:
    Correct
    Incorrect
    10%
    Correct
    Incorrect
    15%
    Correct
    Incorrect
    5%
    Correct
    Incorrect
    7%
    Correct!
    Wrong!

    5%

    In 2011, the average Canadian only saved 5% of their income. For comparison, people in France saved 12.5%, Italians saved 9%, and Americans saved 6%.

  2. 2.

    In 2010, the average household debt for Canadians was:
    Correct
    Incorrect
    $125,000
    Correct
    Incorrect
    $72,000
    Correct
    Incorrect
    $26,000
    Correct
    Incorrect
    $96,000
    Correct!
    Wrong!

    $96,000

    This average household debt for Canadians consisted of credit card debt, mortgages, loans, and lines of credit. The average household debt in Canada has increased 78% in the last two decades.

  3. 3.

    Michelle is good with money. She pays her bills on time, she always puts some money away for savings, and she follows a monthly budget. If Michelle was thinking of getting a credit card, how many would you recommend she get?
    Correct
    Incorrect
    Michelle should not get a credit card at all, as she might become irresponsible if she gets one.
    Correct
    Incorrect
    Michelle should get 1 or 2 credit cards at the most.
    Correct
    Incorrect
    Michelle should feel free to get as many credit cards as she wants since she's so good with money.
    Correct
    Incorrect
    Michelle is good with money so she could get between 3 and 4 credit cards.
    Correct!
    Wrong!

    Michelle should get 1 or 2 credit cards at the most.

    It is important to start building credit as early as possible. Since Michelle is good with money, she should likely get a credit card. However, it is important to never have more than one or two credit cards. Having more than two cards can become confusing and Michelle may lose control of her finances.

  4. 4.

    In 2009, the total amount of money reported stolen from victims of identity theft in Canada was:
    Correct
    Incorrect
    $2 million
    Correct
    Incorrect
    $8 million
    Correct
    Incorrect
    $11 million
    Correct
    Incorrect
    $5.5 million
    Correct!
    Wrong!

    $11 million

    In 2009, the total dollar loss for victims of identity theft was $11 million, which likely isn't even the correct amount since many thefts often go unreported.

  5. 5.

    What percentage of Canadian parents end up not saving for their children's education?
    Correct
    Incorrect
    25% don't save
    Correct
    Incorrect
    30% don't save
    Correct
    Incorrect
    50% don't save
    Correct
    Incorrect
    75% don't save
    Correct!
    Wrong!

    50% don't save

    About half of children in Canada have parents that contribute to their education. Another 30% have parents who plan to contribute in the future, but end up not doing so.

  6. 6.

    Making a budget is all about separating wants and needs. Which of the following is a need?
    Correct
    Incorrect
    Medical expenses
    Correct
    Incorrect
    New luxury car
    Correct
    Incorrect
    A large home
    Correct
    Incorrect
    Restaurant food
    Correct!
    Wrong!

    Medical expenses

    Although transportation, food, and shelter are all necessities, it's important to know when needs turn into wants. You may need a car, but you don't need the nicest one. You may need shelter, but you don't need a the biggest house. You may need to eat, but restaurant food is more expensive than cooking at home.

  7. 7.

    Getting a copy of your credit report is:
    Correct
    Incorrect
    Expensive
    Correct
    Incorrect
    Time consuming
    Correct
    Incorrect
    Bad for your credit score
    Correct
    Incorrect
    A good way to check for identity theft
    Correct!
    Wrong!

    A good way to check for identity theft

    Credit reports are useful documents that should be obtained once a year. They are a great way to check for identity theft and make sure there are no errors in your credit score.

  8. 8.

    Which of the following is not a warning sign for poor credit card use?
    Correct
    Incorrect
    Paying the card with the highest interest first
    Correct
    Incorrect
    Using a credit card out of necessity and not convenience
    Correct
    Incorrect
    Having many cards that are near their limits or maxed out
    Correct
    Incorrect
    Using the credit card to take out cash advances
    Correct!
    Wrong!

    Paying the card with the highest interest first

    It is smart to pay off the credit card with the highest interest first, as it will cost you the most in the long run. The other options are all warning signs of poor credit use.

  9. 9.

    The grace period for a credit card is the time that you have to pay off your card before the interest begins. How long is a grace period?
    Correct
    Incorrect
    One month
    Correct
    Incorrect
    One year
    Correct
    Incorrect
    Two weeks
    Correct
    Incorrect
    It varies
    Correct!
    Wrong!

    It varies

    In Canada, a grace period must be a minimum of 21 days. However, grace periods can vary greatly, so always be sure to know the grace period of your credit card.

  10. 10.

    At what age should you start saving for retirement?
    Correct
    Incorrect
    Early 30s
    Correct
    Incorrect
    Late 40s
    Correct
    Incorrect
    As soon as possible
    Correct
    Incorrect
    Once you're completely out of debt
    Correct!
    Wrong!

    As soon as possible

    It's important to start saving for retirement as soon as possible. Even putting away $20 a month is better than nothing. It may be difficult now, but it will be a big help later!

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