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I Bet You Can't Get 10/10 On This Tricky Two Truths And A Lie Quiz That's All About Money

Can You Pass This Two Truths And Lie Personal Finance Quiz?

I Sincerely Hope You Pass This Tricky Two Truths And A Lie Quiz About Money

Numbers flying around a confused character's head

And it doesn't help that many of our parents never talked to us much about money or that we didn't learn about it in school (though <a href="https://www.buzzfeed.com/meganeliscomb/middle-school-personal-finance-quiz">that's changing</a>). What ends up happening is that many of us end up treating our money like a very stressful guessing game. But it doesn't have to be this way.

Psst, if you have no idea and guess on any (or all) of the questions, no worries. We'll explain the truth after you pick an answer so you have the facts. Making mistakes when the stakes are low is a great way to learn, so you truly can't go wrong in this quiz.

Person holding a smartphone and a credit card

There is [no benefit](https://www.experian.com/blogs/ask-experian/will-carrying-a-balance-on-credit-card-help-credit-score/) to keeping a balance on your credit card if you're able to pay it off in full. In fact, doing this can cost you money in interest charges and might even hurt your credit. So pay off that card if you can.

The lie: Carrying a balance on your credit card is good for your credit scores.

Which of these statements about credit scores is a lie?

Though some student loans (we're looking at you, [subsidized federal loans](https://studentaid.gov/understand-aid/types/loans/subsidized-unsubsidized)) don't start racking up interest until after graduation, that's just not true across the board. If you have unsubsidized federal loans or private loans, then interest charges will add up as you go through school.

The lie: Student loans don't start accruing interest until after you graduate.

Which of these statements about student loans is a lie?

Though student loan debt can make it A LOT more difficult to save up for a down payment, it [doesn't automatically stop you](https://www.nerdwallet.com/article/loans/student-loans/do-student-loans-affect-buying-a-house) from being able to buy a home. If your credit score and debt-to-income ratio fall within a lender's requirements (and you have the savings to back it up) then you can be approved for a mortgage even with student loan debt.

The lie: You have to pay off your student loans before you can buy a home.

Which of these statements about buying a home is a lie?

[Making minimum payments](https://www.nerdwallet.com/article/credit-cards/minimum-payment-credit-card) will keep late fees away, but it won't get you out of debt very quickly. In fact, minimum payments can be a tiny portion of your total balance, as low as 1%. And the longer you're paying off a credit card, the more interest charges will add up. So if you can afford to, always pay more than the minimum.

The lie: You should only pay the minimum on your credit card.

Which of these statements about credit cards is a lie?

Woman holding a sign that says help while going over her finances

Before you pay up, send the collections agency a [debt validation letter](https://www.thebalance.com/sample-debt-validation-letter-for-debt-collectors-960597) within 30 days of the first time they contact you. Sending this letter requires them to prove that the debt is indeed outstanding and that it belongs to you. If the collections agency isn't able to provide documentation to prove that you owe, you aren't required to pay a penny.

The lie: If you get a notice from a debt collector, you have to pay it — even if the debt isn't yours.

Which of these statements about debt is a lie?

When the first federal minimum wage was introduced in 1933, president Franklin D. Roosevelt [said](http://docs.fdrlibrary.marist.edu/odnirast.html), "No business which depends for existence on paying less than living wages to its workers has any right to continue in this country. By living wages, I mean more than a bare subsistence level. I mean the wages of a decent living."

The lie: Minimum wage was never meant to be a living wage.

Which of these statements about minimum wage is a lie?

Person looking at an investing app on their phone

The stock market is pretty unpredictable, but many investors use a strategy called [dollar-cost averaging](https://www.nerdwallet.com/article/investing/dollar-cost-averaging-2) so they don't have to wonder if they're buying investments at the right time. In dollar-cost averaging, you invest a set amount in an asset on a regular basis. For example, let's say you put $10 a week into an [index fund](https://www.investopedia.com/terms/i/indexfund.asp) that tracks the S&P 500. On weeks when the price is higher, you get fewer shares. And on weeks when the price is lower, you get more. Over time, this reduces your risk of spending too much for assets when the price is high.

The lie: You have to know how to time the market to make long-term gains as an investor.

Which of these statements about investing is a lie?

You don't need employer backing to start your retirement fund. Anyone over 18 who has a job can open an Individual Retirement Arrangement (IRA) and start investing for the future. If you're self-employed, there are [other options](https://www.buzzfeed.com/eviecarrick/save-for-retirement-without-401k) you can use to start contributing to your nest egg.

The lie: You have to wait until you get a job with a 401(k) to start investing for retirement.

Which of these statements about investing for retirement is a lie?

Choosing the least-expensive version of something might save you money in the moment, but over time you could end up paying a lot more for repairs and/or replacements. Writer Terri Pratchett illustrated this idea beautifully in his _Discworld_ series in a passage known as ["the boots theory."](https://moneywise.com/managing-money/budgeting/boots-theory-of-socioeconomic-unfairness) Basically, you can spend $10 on a cheap pair of boots that only lasts a year or $50 on a higher-quality pair that will last 10 years. In 10 years' time, buying the cheap boots every year adds up to a total of $100. This passage is also often cited as an example of why lower-income people can end up paying more for things than higher-income people do — because they may not have room in their budgets for higher-quality items that don't have to be constantly replaced.

The lie: Buying the cheapest version of an item will always save you money.

Which of these statements about saving money is a lie?

Budgeting is all about looking at your income and expenses and making a plan for how you'll spend and save. So, if you're only tracking your spending, you're not really planning. Though it can be really eye-opening to look at exactly where all your money goes, it can be even more helpful to have a plan for how you'll spend and save.

The lie: Keeping track of your spending is the same as budgeting.

Finally, which one of these statements about budgeting is a lie?

Finances can be confusing, especially if you haven't had to chance to get educated about them. Nobody starts out knowing everything, and we're all learning as we go. If you want to improve your financial literacy, start by checking out a [finance book](https://www.buzzfeed.com/jasminsuknanan/personal-finance-books-2021) or listening to a [podcast about money](https://www.buzzfeed.com/jasminsuknanan/personal-finance-podcasts) while you do your morning routine. Learning just one little thing each day can really add up over time.

You have some things to learn, and that's OK.

You're not an expert in all things personal finance, but you know enough to get by. Learning about money can seem daunting, but you already have a great foundation of knowledge to build on. If you want to learn more, choose just one area of finance, like [investing](https://www.buzzfeed.com/jasminsuknanan/beginner-stock-market-investing-resources) or homebuying, and focus your research on that topic. It might seem super confusing at first, but the more you stick to it, the more you'll know.

You know a thing or two about money.

From credit scores to 401(k)s, you really know your stuff. If you aren't already known as the go-to person in your friend group for money questions, you should be! Sharing what you know is a great way to reinforce what you've learned, and teaching the people in your circle can give them the power to manage their money more effectively. But don't rest on your laurels, as there's always more to learn about money. So stay curious and look up any lingering questions you have about your cash.

Congrats, you're a finance whiz!

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I Bet You Can't Get 10/10 On This Tricky Two Truths And A Lie Quiz That's All About Money

From credit score myths to misconceptions about investing, it's not always easy to tell the truth from the lies about personal finance.

To help separate fact from fiction, we've rounded up 10 tricky two truths and a lie questions about all kinds of personal finance topics. For each question, just pick the answer that you think is false. Let's get started:

I Bet You Can't Get 10/10 On This Tricky Two Truths And A Lie Quiz That's All About Money

From credit score myths to misconceptions about investing, it's not always easy to tell the truth from the lies about personal finance.

To help separate fact from fiction, we've rounded up 10 tricky two truths and a lie questions about all kinds of personal finance topics. For each question, just pick the answer that you think is false. Let's get started:

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