Test your money knowledge

Take the quiz below to see how you score in your knowledge of the world of money. Circle the answers that you think are correct for you and then check your scores. Be honest – it doesn’t matter how you do because even the score is low, we can also find ways to learn a whole lot more about money. Just have fun!

1.Banking is already part of your life.
a. Not yet because you have no bank account at all.
b. You have a bank account but you don’t really use it.
c. You have a bank account and use it sometimes but usually just to draw all the money out of it when you want to buy something.
d. You have a bank account that you manage carefully. You always make sure that you have some money saved and some money for spending.

2.You believe in saving up to buy things you really want and you set yourself savings goals.
a. Saving up is a waste of time when you can buy things on your mom’s clothing store cards or credit cards.
b. Saving up sometimes works but it is such fun to spend money when you have it.
c. Sometimes you save but have no real plan or goals.
d. You have savings goals that you work towards.

3.Getting into debt is….
a. part of life – everyone ends up in debt.
b. inevitable – that’s why we can borrow from banks.
c. a waste of money because you end up paying so much interest, but what can you do.
d. avoidable if you plan carefully and make your money work for you.

4.You know how a budget works
a. You don’t know how a budget works – that’s adult stuff.
b. You have some idea how a budget works from your Economic and Management Science class but are not really interested.
c. You know how a budget works but have never drawn up one and stuck to it.
d. Your family works out a budget every month and you get involved. You have your own budget for your own money.

5.Budgeting is…
a. a waste of time. Spend now and pay later.
b. boring and can be learnt later.
c. useful but not always necessary.
d. the only way to make your money work for you.

6.You know what banks do and the role they play in the economy
a. You have no idea how banks work and are not really interested.
b. You have some idea how banks work but don’t really know how this relates to the economy.
c. You think you know how banks work and how this relates to the economy.
d. You have a clear idea of how banks work and of the role they play in the economy.

7.Banking consumers have rights and responsibilities. These include:
a. The right to buy things on credit and pay for them when you can.
b. The right to borrow from a bank. It is the bank’s responsibility to get you to pay the loan back.
c. The right to buy things you need even if you cannot always afford them.
d. The right to use banking services and to expect good service and accurate advice; and the responsibility to check all contracts you sign, inform the bank of your financial status, inform the bank of stolen bank cards, pay any loans on time, plan and budget.

8.You know what saving and investment means.
a. No idea.
b. Some idea but little interest.
c. You know what investment means but are not sure whether it is a good idea or not.
d. You have a clear idea about investment and know that there are low- and high-risk investment schemes.

9.JSE is a name for…
a. the Johannesburg Sale Entity.
b. the Johannesburg Sale Exchange.
c. the South African Stock Exchange.
d. the securities exchange in South Africa.

10.You know what a unit trust is.
a. Have no idea.
b. Have some idea but not really sure.
c. Know a bit about it.
d. Yes, you know what it is.

How did you score?

Mostly a: You need to read more about investment to make money work for you! Remember that the earlier you learn how to manage your money, the longer it will work for you. Use related books and other resources like financial magazines, business newspapers and the JSE website at www.jse.co.za and consult with people working in the financial industry to learn more about banking, budgeting, the stock exchange and many more money matters. Have fun doing it!

Mostly b: There is a lot for you to learn about money matters! You have some idea that you should be thinking about money but have not done anything about it yet. Increase your knowledge by reading this column and other financial literature to help you to change your outlook on money.

Mostly c: You have some knowledge of money matters. Importantly, you recognise the importance of managing your money so that it works for you. Expand your knowledge by reading financial literature, it will help you to understand how to make money work for you.

Mostly d: Well done – you have good knowledge about money matters! Don’t stop, continue exploring by reading financial literature and consulting financial experts.