Money test
Money mistakes are rarely about maths. They come from a handful of ideas that feel right and aren’t: that growth is a straight line, that a small fee is small, that cash is safe.
$1,000 grows at 7% a year. Roughly how long until it doubles?
About this test
Every wrong answer here is a named mistake, explained after each question. This is general education, not financial advice for your situation.
Questions people ask
What is the rule of 72?
A shortcut for compound growth: divide 72 by the yearly percentage rate to get roughly how many years it takes to double. At 6%, about 12 years.
Can a raise lower my take-home pay because of tax brackets?
Not through the tax rate itself: in a standard income tax, only the income above each threshold is taxed at the higher rate. Some benefits that stop at an income limit can create exceptions.
Is this financial advice?
No. It explains general ideas. For decisions about your own money, talk to a qualified adviser.
Is this financial literacy quiz financial advice?
No. It’s general education about how money works, such as how interest compounds and how tax brackets apply. It doesn’t know your situation, so for decisions about your own money talk to a qualified adviser.
What’s the Rule of 72?
A shortcut for how long money takes to double: divide 72 by the yearly return. At 7% it takes about 10 years, and at 3% about 24.
