Do You Really Understand Money? Take the Quiz

Think you’re financially savvy? A recent MarketWatch article suggests that most people overestimate their money knowledge. In fact, this short five-question quiz below revealed surprising gaps in financial understanding across all age groups. 

At UNest, we know that real financial empowerment starts with awareness. The truth is: most families want to be better with money—they just don’t know where to start. That’s where tools like UNest come in.

1. The quiz reveals common blind spots
   From interest rates to inflation and credit, the quiz covers topics that should be familiar—but often aren’t. It’s a reminder that basic financial concepts require regular reinforcement.
2. Financial literacy is ongoing, not one-time
   You don’t have to be a finance major to make smart decisions. But regularly brushing up on financial basics can make a big difference—especially when you’re teaching your kids.
3. Learning should be part of your savings journey
   UNest’s platform allows families to not only save but to learn as they go. From portfolio selection to automated goal-setting, every step becomes an educational opportunity.
4. Encourage your kids to take the quiz too
   If your child is old enough to understand money basics, use this as a fun challenge to explore topics together. Learning can be engaging—and impactful.
5. Let curiosity drive better financial habits
   Getting one or two quiz questions wrong isn’t a failure—it’s a starting point. UNest helps parents turn curiosity into action by showing exactly how and where to begin building a stronger financial future.

Understanding how money works is essential in every stage of life. Don’t worry if you miss a few questions—use it as motivation to grow.

1. Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?

1. More than $102
2. Exactly $102
3. Less than $102
4. Don’t know
5. Prefer not to say

2. Imagine the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?

1. More than today
2. Exactly the same
3. Less than today
4. Don’t know
5. Prefer not to say

3. If interest rates rise, what will typically happen to bond prices?

1. They will rise
2. They will fall
3. They will stay the same
4. There is no relationship between bond prices and the interest rate
5. Don’t know
6. Prefer not to say

4. A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage, but the interest paid over the life of the loan will be less.

1. True
2. False
3. Don’t know
4. Prefer not to say

5. Buying a single company’s stock usually provides a safer return than a stock mutual fund.

1. True
2. False
3. Don’t know
4. Prefer not to say

*All answers can be found on the GFLEC website here.

Turn financial questions into progress. Open your UNest account today.

This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, UNest does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information.