Yay! April is Financial Literacy Month

We know most of you are not quite as excited as we are about the 21st annual Financial Literacy Month, but we know you are excited about our annual financial literacy quiz!

As a reminder, Financial Literacy Month was created to build awareness of smart money habits, including budgeting, saving, spending, and investing.

Now to the quiz:

1. Which of the following assets would be expected to hold value during a period of inflation?

a. A certificate of deposit

b. A corporate bond

c. A house

d. This is a dumb question because we never have inflation.

e. No idea. Guess I better call LFS.

2. Which of the following investment strategies has historically shown the highest return over several years?

a. Avoiding the stock market entirely and keeping cash in a FDIC insured savings account.

b. Moving money in and out of stocks frequently to avoid downturns and take advantage of upturns.

c. Buying and holding a variety of stocks while largely ignoring short term fluctuations.

d. This is a dumb question because the stock market never has downturns or upturns.

e. No idea. Guess I better call LFS.

3. A 15-year mortgage usually has higher monthly payments than a 30- year mortgage on the same property. The total interest paid over the life of the loan is

a. More for a 15-year mortgage than a 30-year mortgage

b. Less for a 15-year mortgage than a 30-year mortgage

c. Exactly the same interest regardless

d. Too much

e. No idea. Guess I better call LFS.

4. When GE stock split earlier this month, why did I get some cash in my account?

a. GE paid me to take some shares in the new company.

b. A dividend was paid in cash right after the split.

c. GE paid cash for my fractional GE Aerospace share instead of issuing a partial share of GE Verona

d. It doesn’t matter because I already spent both dollars GE gave me.

e. No idea. Guess I better call LFS.

5. What should I do if I get a website link in an email from Schwab that I have not been told about by LFS? Or if Schwab calls me?

a. Do not click on the link or call Schwab. Call LFS immediately.

b. Do not click on the link or call Schwab. Call LFS immediately.

c. Do not click on the link or call Schwab. Call LFS immediately.

d. Do not click on the link or call Schwab. Call LFS immediately.

e. Got it?