Quiz for Women: What’s Your Financial IQ?

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Quiz: What's Your Financial IQ?

Quiz: What's Your Financial IQ?

By: Gelasia Steed, CFP®

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Are you a lady who lunches and lets your husband handle all of the financial affairs? Or are you a woman who holds the purse strings tightly and puts your hubby on an allowance? Or do you fall somewhere in the middle? All couples have their own way of budgeting and working out their finances. But, what don’t you know and what should you know to be prepared for the unexpected? Let’s test your Financial IQ:

1. What is your household budget?

a) I know when, where and how much we spend.

b) My husband keeps everything in Quickbooks, I just can’t remember the password.

c) Budget? Paycheck plus credit cards = Spending.

2. Do you have an emergency savings account? If so, how much?

a) Absolutely! Six months of our monthly expenses in a bank savings account.

b) We can borrow from our 401(k).

c) Overdraft protection!

 

3. How much debt do you have?

a) Debt-free, just paid off the mortgage!

b) Mortgage and some student loans that we pay down with part of our bonuses each year.

c) Debt = Leverage and we have it all: mortgage, home equity loan, credit cards, car loans, student loans.

4. How much do you save?

a) Social Security is our savings plan.

b) We contribute to our 401(k) to get full employer match, but have no other savings.

c) We max out our 401(k) contributions for retirement and autodraft into a savings account each paycheck for emergencies, vacations, Christmas, home improvements, etc.

5. What is your net worth?

a) Assets minus liabilities equals net worth, and ours is positive!

b) We are underwater on our house since we put 0 percent down, leaving us with negative net worth.

c) They just raised our credit card limit $1,000, does that count?

6. How do you select and manage your investments?

a) My husband tells me what funds to invest in my 401(k) and handles our other brokerage accounts that are at Schwab… wait, maybe Fidelity?

b) We are diversified between large-, mid-, small-cap, international, and of course, some bonds to help smooth the ride. My husband and I go over all of our accounts annually with our financial planner to make sure we are on track to meet our goals.

c) Jim Kramer!

7. When was the last time you updated your will and other estate documents?

a) Last year, after we had a baby. We have wills, durable and medical power of attorneys, medical directives, and a trust for our sweet baby.

b) We had wills drafted when we got married 15 years ago.

c) I think my husband’s will still leaves everything to his ex-wife – get me a lawyer!

8. What kind of insurance do you have to manage your risks?

a) Life, health, disability, umbrella, property and auto insurance. Plus, we are looking into long-term care to make sure we do not burden our children.

b) Whatever I have through work.

c) None, I like livin’ on the edge!

9. Do you have a 529 college savings plan for your kids?

a) Yes, and we diligently contribute to it monthly and track our progress every year.

b) The kids’ grandparents set one up in 2010 and gifted the max allowed. If my kids need more than $130k for college, they can get a job!

c) We are hoping for a football scholarship.

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10.  What are your and your husband’s financial goals?

a) My husband and I want to retire at 65, buy a boat, and island hop in the Caribbean. Eventually, we will move into a condo close to our kids and grandkids.

b) I want to move to Paris and paint along the Seine, but my husband wants to move to Pebble Beach and become a golf pro. Guess we won’t have to worry about getting sick of each other if we live oceans apart!

c) We are barely making it month-to-month and will never be able to retire.

How did you do? Regardless, the most important lesson is to pay attention to your finances so you are knowledgeable and prepared for the unexpected. Life happens, are you ready?

 

 

Answer key; Don’t peek!

1. a | 2. a | 3. not c | 4. c | 5. a | 6. b | 7. a | 8. a | 9. not c | 10. a

 

Gelasia Steed is a Certified Financial Planner™ professional  licensed with a registered investment adviser who provides personal financial advice online for a fee. She enjoys skiing, scuba diving and entertaining friends. Contact Gelasia for help with virtually any financial advice need.

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  • wendelle

    What’s this “We” stuff ? Why assume a woman is married ? And isn’t the whole pont of the article that any woman should be well-informed and educated enough to make her own financial decisions ?

  • SBH

    It also assumes that everyone has, or will have, children.

  • Anna

    Why is there an assumption that a woman must be married to have any financial responsibilities? I went to the bank, and my husband and I were congratulated for purchasing a home. I informed the teller I am not married.

  • KR

    Totally agree with Wendelle. I do all this for and by myself.

  • Cindy

    Yes, it says “quiz for women” but then has things like “my husband does this and I don’t remember the password.” Why not label it as “quiz for the married woman with kids.” Pointless.