Take the Money IQ Quiz

By | August 4, 2019

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(Last Updated On: August 7, 2019)

How well are you managing your money? Take this Money IQ quiz and have some fun with hypothetical scenarios. How would you handle these different financial situations?

lady in thought

Life can suddenly throw any of us a number of curve balls. 

Learn about your financial self. This Money IQ Quiz will show you where you stand. Use this knowledge to grow your financial wisdom.

Choose only one answer for each scenario.

Money IQ Quiz: Scenario 1

For months you’ve been saving up a down payment for a brand new car. You visit the showroom and see the car of your dreams. Everything’s perfect – the color, the features, and the drive.

What would you do?

1. Negotiate a better deal and sign on the dotted line – you can pay the monthly instalments.

2. Tell the salesperson you’ll think about it. You then do online research on how popular the make is and how much it would be worth several years later.

3. Check out the prices for used cars of the same make and model. Knowing prices will help you decide to buy either the new car you love, or a used one instead. 

Money IQ Quiz: Scenario 2

You haven’t gone on a vacation for 8 years. You’ve worked hard to pay down your home mortgage. Feeling stressed out, you need to go away – you have the cash to pay for it

What would you do?

1. Postpone the vacation and instead focus on paying off more of your mortgage.

2. Find another holiday destination that much cheaper than the one you have in mind.

3. Decide that you’ve earned your dream vacation. Take a loan and reward yourself with a better holiday than the one you planned.

Money IQ Quiz: Scenario 3

You promised your little girl that she can have a Dalmatian for Christmas. She has waited patiently for nearly a year. Christmas is approaching, but unexpected payments have suddenly appeared.

What would you do?

1. Explain to your child that she’ll need to wait longer for her pet dog.

2. Take up pet financing as you can’t go back on your promise.

3. Explain the situation and persuade your child to visit an animal shelter to adopt an affordable pet.


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Money IQ Quiz: Scenario 4

A good friend has asked you for an urgent loan. The loan would amount to most of the emergency fund that you’ve carefully saved up.

What would you do?

1. Tell her sorry, you can’t help.

2. Do some online research and direct her to agencies that can help.

3. Lend her the money.

Money IQ Quiz: Scenario 5

Having been budgeting hard, you’ve finally going to clear all your credit card debts. Recently you’ve been invited to three major social events that require a lot of spending.

What would you do?

1. Decide not to attend any of the events.

2. Attend just the cheapest event.

3. Attend all three events, telling yourself that your credit card debts can wait.

Money IQ Quiz: Scenario 6

You haven’t visited your mother in another country for a decade. The visit will cost $3,000. Your income is low and you’ve just started saving furiously.

What would you do?

1. Use most of what you’ve saved so far and borrow the rest to pay for the trip. After all, you haven’t seen her for a long time.

2. Keep postponing your visit, as you want to save as much as possible.

3. Set the target amount of $3,000 to save and once you’ve reached it, use it to pay for your visit.


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Money IQ Quiz: Scenario 7

You’re ready to start college. Despite the need for a student loan, you’re very keen.

What would you do?

1. Study History and the Classics as you’ve always had a passion for them.

2. Study Accounting or Computing as they offer better job opportunities.

3. Study Agriculture or Horticulture, as you come from a family of farmers.

Money IQ Quiz: Scenario 8

You’ve succeeded in saving a tidy sum of money. How would you use that money?

1. Pay down as much of your mortgage as possible.

2. Use most of the money to trade on the stock market.

3. Keep most the money in a savings account to earn interest.

Money IQ Quiz: Scenario 9

Someone had a windfall of more than a million. She lives with her husband and a pet (This is a real-life example. Find out later what she actually did with her money.)

What do you think she should do?

1. Embark on luxury travels to see the world.

2. Buy a large and luxurious property with breathtaking views over the city and sea.

3. Continue living in her present home and use that windfall to invest.

Money IQ Quiz: Scenario 10

A friend bought land worth $200,000 on a hill. Several years later, he tried to sell the land due to high building costs. Someone offered to buy it, but my friend would lose $54,000. (Another real-life scenario. Find out what happened later).

What do you think he should do?

1. Sell the land and cut losses. Use the money to buy an old and tiny property, but in a blue-chip area.

2. Hold onto the land until he has saved enough money as a downpayment to build a house on it.

3. Continue keeping the land to avoid selling at a loss.

Score:

Points are given for each answer that you’ve chosen. For example, If you chose A for Scenario 1, you get 1 point.

Scenario 1:

A.1 B.2 C.3

“C” is the best decision as you will find that a good used car of the same make and model can save you around 40% compared to the new price. You may pay in cash for the used car and avoid paying interest on an auto loan.

Scenario 2:

A.2 B.3 C.1

“B” is the best decision. Going on a cheaper vacation is good for you, and you will also save money. 

Scenario 3:

A.2 B.1 C.3

“C” is the best decision. Adopting a dog will give your daughter a pet, and you’ll also be able to pay the unexpected bill.

Scenario 4:

A.2 B.3 C.1

“B” is the best answer. You’ll still be helping your friend by referring him to a professional budget advisor. You won’t risk your emergency fund. A reasonable friend would understand your decision.  

Scenario 5:

A.2 B. 3 C.1

“B” is the best answer. At least you get to attend one of the social events and give yourself a break. And you won’t spend too much

Scenario 6:

A.2 B.1 C.3

“C” is the best answer. You are likely to be motivated to save the needed amount of money to pay for the visit.

Scenario 7:

A.1 B.3 C.2

“B” is the best answer. Where possible, work towards becoming qualified in higher-paying careers. You can then increase your savings and investments, to reach financial independence sooner.

Scenario 8:

A.3 B.1 C.2

“A” is the best answer. Paying down your mortgage is a surefire way to save a lot of money on long term interest. 

Scenario 9:

A.1 B.2 C.3

“C” is the best answer. Diversified and rather conservative investments should provide her with good income streams now and in the future.

Scenario 10:

A.2 B.3 C.1

“B” is the best answer. Rather than take a huge loss by selling it, he should steadily build the financial means to construct his home on the land. In the long term, his home is likely to increase in value.

 And now, for the most exciting part . . .

What’s your score for Money IQ Quiz ?

10-16   Think more about making decisions that will increase your chances of moving ahead financially.

17-23   Many of your decisions are good for your finances. Think about how you can consistently make good financial decisions.

24-30   Congratulations! You are making sound financial decisions that will stand you in good stead. You can look forward to financial freedom earlier than most folks.

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