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Quizzes And Calculators – Personal Finance Help

by admin on March 9, 2011

Quizzes and Calculators – Personal Finance Help

I think it’s time for us to return to school. Well, you don’t really need to wait for the bus, get a new book bag, lug around about 10 pounds of paper and pens and dodge spit balls, but I think it is time for a little personal finance help. I’ve created a short quiz for you to go through to discover how well you know your finances.

1. It’s more wise to pic a longer amortization period with a mortgage because you’ll have a lower monthly payment.

a: True

b: False

2. There’s actually very little difference on the amount of interest you pay over the term of your mortgage if you pay monthly or bi-monthly.

a. True

b. False

3. What is a dividend?

a. A cash rebate distributed among lenders

b. A payment of additional shares of stock to stockholders

c. A monetary bonus to government workers

d. The opposite of multiplication

4. What is the most important financial tool you should use?

a. Planning a household budget

b. Using a computer for your taxes

c. Balancing your checkbook

d. Seeking personal finance help from a professional

5. What is an Asset?

a. A vehicle, PC or shoes

b. It is money, real estate or stocks

c. Anything owned that has exchange value

d. All of the above

ANSWERS:

1. b – False

It’s incredible how much cash you end up saving if you lessen how long you are paying a mortgage. Try making a larger payment each month so you can save save thousands upon thousands of dollars. The more quickly you can pay it off, the better.

Amortization period     Monthly payment     Total interest over the lifetime of the mortgage

35 years                            $565.25                       $137,408

25 years                            $639.81                       $91,940

20 years                            $712.19                        $70,925

Amount saved with a shorter amortization period – $66,483

2. b- False

If you make your mortgage payment every 2 weeks or twice a month you will get rid of your mortgage much faster. In fact it works out to be an extra payment each year. If you are more of a number person, this chart will provide clearer understanding and give some more personal finance help.

3. b – A payment of additional shares of stock to stockholders

Plenty of people that play with stocks only choose stocks that offer a payment of additional shares to stockholders. Think of it this way. It’s the early 1980’s and you had taken dividends as a stock option when big personal computer company’s were just starting to become popular? Lots of investors did and ended up making millions.

4. a – Planning a household budget

Each choice in question four are important financial tools that you can use but the most important one is to plan a household budget. It is wise to understand where all of the cash is going and how much you have left over to spend and save. You really should make a household budget if you want to stay on top of your finances.

5. d – All of the above

This one may have fooled you but an asset by definition is ‘anything owned that has exchange value’. Essentially an asset is really anything. Clearly some assets are wiser investments than others (such as real estate or stock options) but even the dusty old PC that you got when you headed off to college is an asset.

I hope this quiz was interesting and provided you with some of the personal finance help you deserve. You have to keep track of of your money and learn as much about your finances as possible. The more informed you are chances are you will achieve your financial goals. By now you should have created a number of personal goals.

Cheers until next time!

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