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Financial Literacy Quiz—28,000+ respondents
1. Suppose you have $100 in a savings account
earning 2 percent interest a year. After five years,
would you have more than $102, exactly $102 or
less than $102?
a.
b.
c.
d.
More than $102
Exactly $102
Less than $102
Don’t know
2. Imagine that the interest rate on your savings
account is 1 percent a year and inflation is 2 percent
a year. After one year, would the money in the
account buy more than it does today, exactly the
same or less than today?
a.
b.
c.
d.
More than it does today
Exactly the same
Less than today
Don’t know
3. If interest rates rise, what will typically happen to
bond prices? Rise, fall, stay the same, or is there no
relationship?
a.
b.
c.
d.
e.
Rise
Fall
Stay the same
No relationship
Don’t know
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4. True or false: A 15-year mortgage
typically requires higher monthly
payments than a 30-year mortgage but
the total interest over the life of the loan
will be less.
True
False
Don’t know
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5. True or false: Buying a single company's stock
usually provides a safer return than a stock
mutual fund.
True
False
Don’t know
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2.7
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2.9
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Poor employee financial
literacy costs employers 1220 hours of lost productivity
per month
44% financially
distressed employees
use work hours to deal
with issues
Poor financial literacy accounts for
60% of employee illness
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INDIVIDUAL / SOCIETAL COSTS
Forgone savings/investment opportunity
Financial loss and/or bankruptcy
Higher prices than necessary for goods & services
Economic instability
Lack of planning for retirement
INDIVIDUAL / SOCIETAL COSTS
(continued)
Marital problems
Health problems
Insufficient insurance
Excess reliance on social support
Economic inefficiencies
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40 Million Americans
carry at least one
student loan
On average,
borrowers carry 4
student loans each
The average
balance of student
loan debt is
$33,000 (2014)
The total outstanding
balance is $1.2 trillion
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Borrowers older than
60 owe $43 Billion in
student loan debt.
Student loans are the only
form of debt where a lendor
extends credit year after
year without knowing a
person’s willingness or
ability to pay.
48% of 25-34 year
olds say they’re
unemployed or
under-employed
Only 41% of
undergraduates
graduate in 4 years.
2/3 do not
understand the
terms of the loans
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33% live at home longer
than they (or their
parents) expected or
move back in after
graduation
44% delay buying a
house
43% postpone
graduate school
28% delay having
children
Most cannot
begin saving for
retirement
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Household Net Worth Has Rebounded:
Selected Liabilities
trillion
Source: Federal Reserve Board.
Is a College Degree Still Worth It?
• Short answer, yes
• College grads have lower unemployment
rate
• In almost every industry, workers with
college degree earn more than
counterparts without
• But…
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Good Retirement
Strategy?
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Give Voice
Advocate
Give Time
Volunteer
Give Resources
Donate
www.economicscenter.org/give
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