Financial Literacy Tests to Track your Progress Efficiently(+ quick guide and tips)

financial literacy tests

In the world today, some people don’t actually know about financial literacy tests, and the ones aware of the meaning might wonder, “What is the passing score on a wise test?” Some people who have made a few dollars don’t really know how to save, spend, and invest their money for the future. It is the reason for this topic. This article explained financial litracy test, what is the passing score on a wise test. Money is one of the aspects of humanity, therefore proper management of it is very important for the present and future purposes. Learn also on this topic the financial literacy test 3 questions, for high school and college students with pdf. That brings us to what the financial literacy test is.

What is a Financial Literacy Test?

A financial literacy test is a 30-question test drafted to measure a candidate’s potential to earn, spend, save, and grow their money. However, it’s also a means of building smart financial habits. Meanwhile, the test questions encompass the ten subjects enclosed in the Framework & Standards. Notwithstanding, these tests were noted to measure 3 major areas, learning impulse, subject mastery, and the first step identification.

What Are the 7 Components of Financial Literacy?

7 Essential Elements of Financial Literacy

  • Interest
  • Budgeting
  • Debt Management
  • Credit
  • Identity Theft Protection
  • Savings
  • Financial Goals

What is the passing score on a wise test?

A wise financial literacy test’s passing score varies depending on the age of participants at a given time. Till date, the average score on a wise test regarding the age factor remains as follows:

  • the age of 10 -14 has an average passing score of 56.60% approximately 57%.
  • 15 – 18 old of age passing score is 63.34% on average.
  • 19 – 24 age passing score rate is about 76.20%.
  • 36 – 50 carries a passing score of 77.37%.
  • While 51+ years of age carries about a 78.13% passing score.

Note: The financial literacy test only illustrates that the average person has no fundamental financial knowledge they need to make good financial decisions. Meanwhile, this test is just an indicator of content knowledge. It requires more than just understanding the content for learners to be able to adjust their daily financial behaviors. This will let them have adequate knowledge to make financial decisions with confidence.

What Are the 3 Keys to Financial Literacy?

based on the Financial Literacy and Education Commission, Earn, spend, save and invest, borrow, and protect are the five key components of financial literacy.

Read Also: Financial Officer: The Complete Guide(+ Free tips)

Financial Literacy Test 3 Questions

Here are the three basic financial literacy tests most people fail:

#1. Suppose you had $100 in a savings account and the interest rate was 2% per year. After five years, how much do you think you would have in the account if you left the money to grow?

(A) More than $102. (B) Exactly $102. (C) Less than $102

Answer: ‘A’

#2. Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After one year, how much would you be able to buy with the money in this account?

(A) More than today. (B) Exactly the same. (C) Less than today

Answer: ‘C’

#3. Please tell me whether this statement is true or false: Buying a single company’s stock usually provides a safer return than a stock mutual fund

Answer: ‘False’

Read Also: Certified Financial Analyst: Definition, Requirements, Fees, Salary (+ quick tips)

What Are the Three R’s of Financial Literacy?

It is comprehending concepts such as the time value of money, risk and reward, and, yes, the significance of saving.

Financial Literacy Test for High School Students

The validation of positive results can be used to expand the scope of financial education programs and to obtain additional funding. There are not created all financial competence tests for students in the same way. Lots of people don’t ask the right questions. Many people have misunderstood the results or missed opportunities for improvement.

Because of this, the NFEC high school financial literacy test is not plagued by these issues. They know the meaning of the data and how to put the results into practice. Therefore, the NFEC is a valuable planning resource for high school students.

Read Also: FINANCIAL ANALYST: Meaning, Requirements, Skill, Salary, ( +free Employment tips)

Financial Literacy Test for College Students

A college financial literacy test can change a student’s life. University is the best time to learn basic financial knowledge, as it was the first time that people often took on their financial responsibilities. On the other hand, it is still very early and they may not be able to get into debt.

NFEC understands the importance of financial literacy tests for students. We have developed a comprehensive testing system for evaluating students and courses.

What Are the Six Financial Principles?


There six principles of finance, they are:

  • Higher returns are expected for taking on more risk
  • Diversification of investments can reduce risk
  • Money has a time value
  • Financial markets are efficient in pricing securities
  • Manager and stockholder objectives may differ
  • Reputation matters.

Financial Literacy Test pdf

The below free pdf will help you know more about the financial literacy quiz.

What Are the 4 Pillars of Wealth?

Assets, debts, income, and expenses are the four cornerstones of anyone’s financial picture. You can learn a lot about your financial health and your net worth by measuring and comparing these.

Conclusion

In today’s world, it is impossible to buy daily necessities without wealth. We all dream and strive to make money. Even if you acquire it in some way, there is no guarantee that it will be used wisely. That’s why you need to know financial literacy. How do you manage the money you earn around the clock? Understand financial literacy, test pdf.

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