Consumer Tips

5 Question Quiz

Are you financially savvy?

Try this 5 question quiz.

We hope the US Financial Capability Challenge made you think. Study participants were asked five questions covering aspects of economics and finance encountered in everyday life, such as compound interest, inflation, principles relating to risk and diversification, the relationship between bond prices and interest rates and the impact that a shorter term can have on total interest payments over the life of a mortgage.

Individuals need at least a fundamental level of financial knowledge. This knowledge, paired with financial decision-making skills, can best ensure an individual’s financial capability. Provided by FINRA: Investor Education Foundation.

Related to the quiz is the “Rule of 72.” This rule determines how long it will take your money to double. Simply divide the interest rate into 72. For example, an account earning 6% interest will double in 12 years (72 divided by 6 equals 12).

Make A Friend for Life: Your Personal Banker

Just like you interview your doctor or investment advisor before establishing a long-term relationship, you should do the same with your personal banker. It all begins with getting to know one another and what you need. Start saving young. The sooner you start saving, the sooner your money will start to work for you. And your personal banker can be the sounding board you call on for common sense approaches to personal finance. Learn more.

Elder Financial Abuse is Real.

Yep. Uncle Albert came into the bank yesterday and asked to withdraw a sizeable amount of cash. This was out of character for Uncle Albert, but who wants to intervene and question him? Welcome to our new strange world where lines of privacy and common sense begin to blur. Thankfully, a personal banker is paying attention and can alert the financial caregiver in the family. Check out the FDIC and Consumer Finance Protection Bureau guides to help prevent elder financial exploitation.

Cappuccino or Latte? Save a Little?

Yep. It’s true. Save a little every day and pretty soon you have an emergency fund. Just think, saving $2 per day X 7 days a week = $14. And then, $14 per week X 52 weeks = $728. Starting small makes it possible. You can do it! Learn more.