Quizzes and Calculators - Personal Finance Help
It may be about time for us to return to school. Okay, you don't literally have to jump on the school bus, get a new school bag, lug around about 10 pounds of paper and highlighters and hide your lunch money, but it's time for a little personal finance help. Here is a short quiz that you can zip through to discover how well you understand your finances.
1. It's more wise to choose the longest amortization term with a mortgage because you will have a lower monthly payment.
2. There is no difference on how much interest you pay over the length of your mortgage if you contribute monthly or bi-monthly.
3. Do you know what a dividend is?
a. A cash rebate traded between lenders
b. A payment of additional shares of stock to stockholders
c. A monetary bonus for employees
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. Locating personal finance help from a professional
5. Do you know what as asset is?
a. A car, computer or clothing
b. It is cash, property or stocks
c. Anything owned that has exchange value
d. All of the above
1. b - False
It's incredible the amount of money you end up saving if you lessen the amount of time over which you are paying a mortgage. attempt to make 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
By making your mortgage payment every two weeks you will get rid of your mortgage way more quickly. In fact it works out to be 1 extra payment each year. To quantify things for you, the below chart will provide clearer understanding and give some more personal finance help.
3. b - A payment of additional shares of stock to stockholders
A lot of people who play with the stock market only choose stocks that offer a payment of additional shares to stockholders. Imagine you had taken dividends as a stock option when big personal computer company's were just starting to become popular? Many people did and made a fortune.
4. a - Planning a household budget
All of the options in question 4 are excellent financial aides to use but the most important one is to plan a household budget. It's smart to know where all of your cash is headed and how much you have left over for saving and spending. You really should make a budget for your home if you want to stay on top of your finances.
5. d - All of the above
This one one was a bit tricky but an asset by definition is 'anything owned that has exchange value'. Basically an asset can be anything. Clearly many assets are better investments than others (such as property or the stock market) but even the slow old PC that you got when you went to college is actually an asset.
I trust this quiz was interesting and provided you with some of the personal finance help you deserve. You have to stay on top of your money and learn as much about your finances as possible. If you are informed chances are you will achieve your financial goals. I know you have already created a whole bunch of financial goals.
Cheers until next time!
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