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Financial Foundation Test Results 2020-03-26T08:21:29-07:00

Financial Foundation Decisions Test Results

75%

Average Score of 74.60% to Date

69%

Percentage of Passing Scores to Date

+10%

Δ: Change in Averages from 2018-2019: +10%

Please note that the average score for 15-18 year olds during 2019 was 63.36%

0
Participants to Date

You can take the test at the NFEC’s Financial Literacy Testing & Survey Center. Access 4 complimentary measurement tools, surveys, tests and to view results from past participants. NFEC clients can access the full Testing & Survey Center which includes over 50 online measurement tools.

Go to the Financial Literacy Testing & Survey Center

Statistics by Answer

Question 1.

When you purchase a brand-new car..

10.82% - You own an asset that is likely to appreciate in value

11

60.20% - Your net worth will probably decrease immediately by at least 5% of the car’s purchase price

60

13.93% - You will receive reduced auto insurance rates compared to older-model used cars

14

5.34% - You will receive lower registration rates compared to older-model used cars

5

9.7% - Uncertain

10

Question 2.

The best time to shop for a car loan is…

3.63% - At the dealership when you are purchasing the car

4

50.39% - Before you start searching for a car

50

29.58% - Once you find a car on which you want to make an offer

30

14.30% - It’s always best to pay cash for your car

14

2.10% - Uncertain

2

Question 3.

How do you calculate the cost of renting a place to live in order to determine whether renting is an option for you?

75.41% - Add the rent plus all the additional expenses of renting a place to determine whether the total aligns with your personal

75

9.33% - Estimate the exact rent costs and the cost of utilities

9

6.0% - Identify the exact amount of rent that is owed each month to a landlord

6

6.56% - List all the components of the rent amount you will pay to the landlord

7

2.71% - Uncertain

3

Question 4.

What should you research and be prepared to pay prior to moving into a rental property?

2.98% - Current month’s rent

3

1.56% - Last month’s rent

2

7.42% - Security deposit

7

3.02% - Expenses associated with establishing utilities

3

83.52% - All of the above

84

1.51% - Uncertain

2

Question 5.

Which loan term is best if you want to reduce the total amount you will repay over the life of the loan?

66.21% - 3-year

66

11.7% - 5-year

12

4.73% - 7-year

5

10.14% - 10-year

10

7.21% - Uncertain

7

Question 6.

What is the most important financial consideration when deciding whether to take out a college loan?

8.97% - The school you attend

9

7.71% - Your GPA and college testing scores

8

73.74% - The return on investment you’ll receive from obtaining the degree

74

6.02% - Whether you live on-campus or off-campus

6

3.56% - Uncertain

4

Question 7.

Loan payments are based on:

3.31% - APR

3

6.13% - Interest Rate

6

3.22% - Length of the Loan

3

47.16 - B & C only

47

40.17% - All of the above

40

Question 8.

If you are unable to pay off the entire balance you owe in credit card debt, the best way to pay off the balance is to _____.

22.36% - Pay more than the minimum monthly payments on all your credit cards

22

13.86% - Pay off the card with the lowest balance first

14

48.90% - Pay the maximum your budget allows on the card with the highest interest rate

49

9.08% - Pay the maximum payment on the card with the highest balance

9

5.79% - Uncertain

6

“Results from this test show that most youth today venture out into the real world unprepared for the financial realities they will face. They lack the knowledge and confidence to make the most common financial decisions, which can lead to problems that snowball. Just a few mistakes early on can damage their credit, increase their debt load, and inhibit their ability to attain employment.”

– Vince Shorb, CEO
National Financial Educators Council

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