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Improving your financial literacy skills

With even Harvard students lacking basic knowledge, the search is on for the best way to teach money skills

How good is your financial literacy? Take our quiz, and see the percent of Americans who got each question correct.
  • Imagine that the interest rate on your savings account was 1 percent per year and inflation was 2 percent. After one year, how much would you be able to buy with money in this account?

    65 percent of Americans got this answer correct
  • If interest rates rise, what will typically happen to bond prices?

    28 percent of Americans got this answer correct
  • A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage, but the total interest paid over the life of the loan will be less.

    76 percent of Americans got this answer correct
  • Buying a single company's stock usually provides a safer return that a stock mutual fund.

    53 percent of Americans got this answer correct
  • Which of the following types of investments are found in a money market fund?

    35 percent of Americans got this answer correct
  • Index mutual funds do which of the following?

    32 percent of Americans got this answer correct
  • Suppose you had $100 in a savings account and the interest rate was 2 percent per year. After five years, how much money do you think you would have if you left the money to grow?

    78 percent of Americans got this answer correct
  • Over the past 10 years, the annual rate of inflation has been closer to...

    35 percent of Americans got this answer correct
  • What type of investment has historically provided the best protection against inflation over the long term?

    28 percent of Americans got this answer correct
  • What is the best way to minimize losses in your investments when the stock market declines?

    88 percent of Americans got this answer correct
  • Which of the following statements best describes what asset allocation is?

    79 percent of Americans got this answer correct
  • Which of the following best describes what a 529 plan is for?

    61 percent of Americans got this answer correct

Sources: Northwestern Mutual, FINRA

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