April is here and you know what that means: spring, allergies and tax season. April also is the month we at Iowa State Bank celebrate Financial Literacy Month, a month to highlight the importance of financial literacy and to teach customers how to manage and establish healthy financial habits. The financial crisis and recession have exposed behaviors that indicate low levels of financial literacy in people across the nation. We see it as our duty at Iowa State Bank to help educate you on financial literacy.
Iowa State Bank has set up a quiz to test your basic knowledge about managing finances.
- How much of your income should you spend on monthly housing expenses?
- True or False: The color of your car is a factor that affects your auto insurance rates.
- True or False: Contributions to a Roth IRA are not tax-deductible.
- True or False: Never buy a house that costs more than 2.5 times your annual income.
- How much money should you keep in your emergency fund?
- Six months of living expenses
- Four months of rent or mortgage payments
- True or False: By adjusting your tax withholdings on a new Form W-4 you can increase your paycheck.
- Which of the following items is not part of your credit report?
- Your income
- Your current credit card balance
- Your payment history
- True or False: You only need life insurance if you have someone depending on you financially (spouse, children, etc.).
- True or False: Closing a credit card account you no longer use will lower the amount of credit you have available, and that can put a black mark on your record resulting in a lower credit score.
How did you do? If you answered most of them correct, congratulations! But if you missed some, don’t worry, Iowa State Bank is here to offer a helping hand and answer any questions you may have.
Celebrate National Literacy Month with Iowa State Bank as we take this month to help members become smarter consumers.
Answers: 1. (3), 2. false, 3.true, 4. false, 5. (2), 6. true, 7. (1), 8. true, 9. true