Money IQ Challenge 43
Question: ❓When a financial professional says they act as a “fiduciary,” what does that actually mean? A) They are licensed to sell investments and insuranceB) They must put your best interest first, even if it pays them lessC) They only charge flat fees and never earn commissionsD) They can guarantee your investments will not lose […]
Money IQ Challenge 42
Question: ❓You have a full-time job with a 401(k) and you also earn money from a side gig. Which of the following is true? A) You can only contribute to your work 401(k), not an IRAB) You can have both a 401(k) at work and a traditional or Roth IRAC) You must have an LLC […]
Money IQ Challenge 41
Question: ❓You’re helping your parents review their investment accounts. You see an option to add a “trusted contact” person on file. What’s the main purpose of a trusted contact? A) To give that person full access to trade and withdraw money if neededB) To let the firm contact someone if there are concerns about fraud, […]
Money IQ Challenge 40
Question: ❓You come into a lump sum of money and want to invest it. Historically, which approach has led to higher long-term results? A) Waiting for the market to feel saferB) Spreading the money in slowly over timeC) Investing the full amount as soon as possibleD) Holding cash until the next downturn Answer: ✅ C) […]
Money IQ Challenge 39
Question: ❓Two people invest the same total amount over 25 years and earn the same average return. What can still cause one person to end up with much less money than the other? A) Which company or app they use for their investmentsB) The order in which they experience good and bad market yearsC) Whether […]
Money IQ Challenge 37
Question: ❓Which decision creates the biggest loss for investors? A) Staying fully investedB) Missing the 10 best days in the marketC) Rebalancing once a yearD) Checking your accounts often Answer: ✅ B) Missing the 10 best days in the market Here’s why: Here’s how big the difference is. Vanguard looked at how $100,000 invested in […]
Money IQ Challenge 36
Question: ❓What does “opportunity cost” mean when spending money? A) The tax you pay on purchasesB) The extra fee for choosing one brand over anotherC) What you lose the chance to do because of the choice you madeD) The price difference between sale and full price Answer: ✅ C) What you lose the chance to […]
Money IQ Challenge 34
Question: ❓When you decide to spend money on one thing, what’s the opportunity cost? A) The amount of cash left in your budgetB) The next-best use of that money you gave upC) The total price including taxD) The discount you missed by not waiting for a sale Answer: ✅ B) The next-best use of that […]
Money IQ Challenge 33
Question: ❓Which should come first—saving or paying off debt? A) Throw every extra dollar at the debtB) Build a full year of savings firstC) Start with one month of expenses in savings, then tackle high-interest debtD) Split money evenly between everything Answer: ✅ C) Start with one month of expenses in savings, then tackle high-interest […]
