Take this Finance Quiz
How Much Financial Stress
Can You Tolerate?

Take the finance quiz below and see if you can pass a personal financial stress test. 

The major banks around the world had to take stress tests after the 2008 global financial crisis. If these banks failed the test, it meant the bank, in question, didn't have enough cash on hand or other property that could easily be sold off to get quick cash. If a bank failed this stress test, it meant it could collapse if a recession hit. It was not pretty because lots of banks around the world failed the test and if you were a customer of one of these banks, you could be in real trouble, not to mention all the employees would lose their jobs.

The global bank stress test project led me ask the question, "How would I do in a personal version of the bank stress test?" We all know that financial stress is rated high on the list of worst stressors, so it seems a good idea to take a finance quiz or financial stress test to see how you would do if something major happened with your health or if you lost your job, two major additional stressors.

You can use this finance quiz to see just how financially resilient you really are:

Finance Quiz Questions

All the questions in this finance quiz along with the correct answers are shown below. Go through the questions and choose the best answer for you in each question. This finance quiz is intended to be very obvious and you can determine how close you came to a correct answer by reading the paragraph after each question called, "Explanation."

Give yourself '1' point for each preferred answer. If you have not solved the problem yet in your life, then move onto the action step listed below the explanation for that question on the finance quiz. Let's get started.

Rainy Day Funds

Do you have a little money saved up for a rainy day? More is better, but less is better than nothing when it comes to stress management.

[   ]  Yes  (this answer is preferable)

[   ]  No

Explanation

Financial stress will be dramatic if you don't have any money put away to deal with an unexpected change in your life, such as an illness or the loss of a job. If you live paycheck to paycheck, if you answered to this question of the finance quiz or if you are dependent on credit cards or lines of credit to pay bills, you could be facing serious emotional stress in the case of an emergency.

Action Step

Immediately, begin saving a little money from each paycheck in a savings account. Even $10 per paycheck is better than nothing.

6-8 Months at Least

If you have some savings for dealing with unexpected events, how much is in it?

[   ]  6-8+ months of living costs

[   ]  5 or fewer months of living costs

Explanation

Any good finance quiz will show that savings are not enough, you have to have basic minimum amount. It's a good idea to have an amount equal to 6-8 months of what it costs you to live in your savings account. I know this seems like a lot, but the stress you would save yourself if you had this cushion in place is immense. It's also a good idea to know about the policies your company has in place in the case of a lay off or dismissal and you might want to check out the labor laws in your state/province as well as on a national scale, such as unemployment insurance.

Action Step

If you have less than 6 months of expenses saved up, go back to question 1 and either start saving or keep saving. You may even want to do some odd jobs on the side while you have your health in tact to raise the needed funds a little quicker. Also, don't forget to do your research into company policies around job loss and around labor laws and potential sources of income in the case of illness or job loss.

Opportunities are Everywhere

Do you have some extra funds put away that would allow you to take advantage of opportunities that come your way, such as a vacation or a business opportunity?

[   ]  Yes    (this answer is preferable)

[   ]  No

Explanation

Opportunities come along all the time – maybe you want to buy a house and need the down-payment, perhaps you have been presented with an excellent investment opportunity, etc. This finance quiz wouldn't be worth a cent if it didn't reflect the need to separate emergency funds from opportunity funds.

Action Step

Set up a separate method for saving into an opportunity fund. Again, even a small amount each month is better than nothing. Perhaps, you can give up one of your habits, such as Starbucks or cigarettes and put the money you save into your opportunities fund. By rewarding yourself instead of just spending this money on basic expenses, you will activate the Dopamine pathways in your brain (your reward center) and this is great for stress management, not to mention that Dopamine is a lot like natural cocaine and using your Dopamine pathways in this healthy way instead of on something destructive like gambling will be good for your overall stress management plan.

Honey, We're Having a Baby?

If you found out you were pregnant tomorrow, would you have enough in additional savings? You will need at least $15,000? Otherwise you will be exercising your credit cards. This is the ultimate finance quiz question because this issue is so often overlooked until it happens.

[   ]  Yes    (this answer is preferable)

[   ]  No

Explanation

So many people just go ahead and get pregnant without any clear idea of the costs of dealing with delivery and of raising a child. Did you know it is NOT unusual for the bill for the first 18 years to come to at least $15o,000? However, you are more likely to pay closer to $200,000 and that's before college or university.

Action Step

Get a plan together to have a baby fund of at least $15,000 for the first couple of years. All that baby equipment is certainly not cheap. Also, get a plan together for how you will make money beyond your main job to ensure you are not dipping into your emergency fund and opportunity fund to cover unexpected childcare and child rearing costs. And don't forget, that's just baby #1, if you are planning on going for more than one child, you need to get hyper-serious about a solid and predictable financial plan. Once again, the point of this finance quiz is to show the need for different types of savings accounts.

House/Renter's Insurance Today Keeps Stress at Bay

Do you have renter’s or homeowner’s insurance

[   ]  Yes    (this answer is preferable)

[   ]  No

Explanation

Would you be OK in the case of a fire or a robbery? Two families I know lost everything in a forest fire that swept through their town many years ago. One had partial insurance and the other had no insurance. The first could only rebuild to a lesser version of the beautiful home they once had and the other just lost everything. So sad. Don't let this happen to you. There is no advice you will ever get from a finance quiz that can be more important than a recommendation to get your insurance house in order.

Action Step

Immediately contact 4-6 companies (find them in the Yellow Pages) that sell house insurance and/or renter's/tenant's insurance. Get detailed quotes from all of them. Make sure you read the fine print (hire a lawyer to explain the quotes if you don't understand them) and then buy the policy that suits your needs best. Also, go through each room in your house and make a list and take pictures of all your belongings. In the case of a fire or a theft, you will have proof of what you own. Make sure you get a replacement cost policy, not the cash value option as this is usually insufficient to cover the real costs.

Auto Insurance

Do you have automobile insurance?

[   ]  Yes    (this answer is preferable)

[   ]  No

Explanation

Where I live, auto insurance is mandatory and you can get in real trouble with the law if you drive without insurance; the costs of driving without insurance (the fines you can get, that is) are astronomical; however, there are always people on the road who ignore the laws and don't have insurance. These are also the reckless drivers, most of the time. There are also plenty of places where having insurance is not required by law and the best finance quiz in the world will not protect you from an under-insured motorist. Regardless, of why a person may not have insurance, you want to make sure you are covered and you want to make sure your insurance covers the other driver without insurance or without enough insurance as well. It is very possible for you to be bankrupted by the costs of an under-insured driver in an accident.

Action Step

Immediately contact 4-6 companies (find them in the Yellow Pages) that sell auto insurance and get detailed quotes from all of them. Make sure you read the fine print (hire a lawyer to explain the quotes if you don't understand them) and then buy the policy that suits your needs best. I think I just said that... it must have been important.

Health Insurance

Do you have health insurance?

[   ]  Yes    (this answer is preferable)

[   ]  No

Explanation

I don't think there is anything more expensive than medical costs. Many years ago, my 2-year old daughter fell and hit her mouth on the side of a table, which caused a lot of bleeding and scared us pretty good. After a quick trip to the hospital emergency room, the ambulance trip and some head scans, the bill came to $5000. It was amazing because we were only there for a few hours. Thankfully, we had insurance and although the company fought having to pay the bill, in the end they coughed up the money. Needless to say, we got good at risk management and learned all about health and wellness so we would minimize our need for health care as much as possible. What about you? Are you covered in the case of a medical emergency. Have you read the fine print of your medical insurance plan?

Action Step

Immediately contact 4-6 companies (find them in the Yellow Pages) that sell medical or health insurance. Get detailed quotes from all of them. Make sure you read the fine print (hire a lawyer to explain the quotes if you don't understand them) and then buy the policy that suits your needs best. Wow, I'm starting to sound like a broken record... you should probably pay attention here, insurance must be really important.

Scoring Summary

Use the scoring system for this finance quiz as a guidepost and as a way to evaluate how far along you are on the path to full financial fitness. The finance quiz scoring system is based on the best possible scenario. If you don't have a great score, there is no time like the present to start solving the problem. This finance quiz is just the beginning to solving financial stress. Sometimes all you need is the right tool to get started earning more income so you can get started saving.

Check your finance quiz score below:

6-7 points: High Pass

Congrats—your finance quiz score shows you are in a position to withstand most financial mayhem. That doesn’t mean you’re entirely off the hook. Keep saving and keep being great at financial risk management. This way you will always keep your finance quiz score high.

4-5 points: Pass

You’re getting there. Your finance quiz score shows very clearly that your financial house isn’t weatherproof quite yet, but you’re in a position to seal up a lot of financial leaks as they occur. Keep on your current path, don’t lose sight of your goals, and you’ll be there soon enough.

3-4 points: Back to Basics

We know how hard it is to save money, especially in this economy. We don’t expect you to be a financial superstar overnight, but we want to encourage you to start working on it today. Although financial disaster may seem like something to prepare for another day, let the collapse of major banks be a warning to you: You can’t control everything, so it’s important to plan for anything.

0 to 2 points: Time to Get into Gear

Although we love the idea of living in the moment, we recognize that it’s important to plan for the future. Happy thoughts can only go so far if we lose our job, our car breaks down, or any other financial stresses come our way. Let today's finance quiz score be a wake-up call for you.

Finance Quiz Summary

As you can see on this basic financial stress test, all the questions are related savings and insurance. Even a retirement plan is just another form of savings. I could ask many more questions, but this finance quiz would go on forever. You could take also take a finance quiz that discusses the stability of your sources of income, your estate planning and your debt management systems.

The reality is that money or lack of it causes stress. There is no way around this and if you want to keep financial stress at bay, then you must take steps to get and keep your financial house in order. Taking this finance quiz was an excellent first step; it may be a good idea to take the test once each year.


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