Financial Literacy Quiz

You answer 20 multiple-choice questions covering 6 topics: compound interest, taxes, insurance, credit, investing, and budgeting. After answering, you see the correct answer and a detailed explanation. At the end, you get a percentage score and an estimated percentile ranking.

The quiz covers compound interest (Rule of 72, growth projections), taxes (marginal rates, 401k, Roth IRA, capital gains), insurance (deductibles, term vs whole life, umbrella), credit (FICO factors, utilization, bankruptcy), investing (ETFs, dollar-cost averaging, diversification, index funds), and budgeting (50/30/20 rule, emergency funds).

The percentile rankings are fun estimates based on general financial literacy research. Studies consistently show that most Americans score around 50-60% on financial literacy tests. The rankings give you a rough idea of how your knowledge compares, but they're not based on a real-time leaderboard.

People with higher financial literacy tend to save more, invest more wisely, carry less debt, and retire more comfortably. Studies show that financially literate individuals accumulate 25-30% more wealth over their lifetimes compared to those with low financial literacy.

Start with the fundamentals: compound interest, the 50/30/20 budget, emergency funds, and index fund investing. Glen Bradford's site has free calculators, guides, and tools to help you understand these concepts hands-on.