State of Financial Knowledge

Financial Knowledge

MoneyWhizz is a leading developer of financial literacy content. Financial literacy is important as it allows us to make informed decisions on a range of complex financial products. The following questions have been formulated to offer a general insight into the state of financial literacy in Ireland.

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* 1. Who would require the highest amount of life insurance if each of the following persons had the same amount of take home pay?

A young couple with two children

An elderly retired couple

A middle-aged unmarried person

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* 2. Will your savings have at least as much buying power in a year’s time if the interest rate you receive on it is .5% and the inflation rate is at 5%?

Yes

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* 3. The value of stocks are insured by:

European Central Bank

Stock Exchange

They are not insured

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* 4. By using unit pricing at the supermarket, you can easily compare the cost of any brand and any package size

True

False

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* 5. On a private pension plan, which of the following is correct?

No tax is ever payable on private pension funds

If you leave your employer, they retain your pension

Private pension accounts offer significant tax benefits

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* 6. Which group would have the greatest financial challenge during periods of high inflation lasting several years?

A young working couple with children

Couple in retirement

A middle-aged couple still working

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* 7. Mary has accumulated €24,000 for her daughter's college education which is due to begin in 12 months time. She will require the full amount. Which of the following is now the best place for that money?

In a savings bond offering limited capital protection

In a savings account at a local savings institution

In a diversified, managed fund through a regulated financial advisory firm

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* 8. Under which of the following circumstances would it be financially beneficial to borrow money to buy something now and repay it over time?

When there is a great sale offering bargains on items you really want

When doing so can help one get a better paying job

When the interest rate on the loan is greater than the rate on a savings account

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* 9. Which of the following would best protect a family's financial situation in the event of a sudden increase in inflation?

A house financed with a fixed-rate mortgage

A State Savings Bond

Prize Bonds

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* 10. GENDER - Are you?

Male

Female

Rather not say