Home  > Personal Finance: Do You Have Sound Financial Habits?
 Share  Print Version  Email

Personal Finance: Do You Have Sound Financial Habits?

Provided by the International Finance Corporation


Select the answer that best represents your current situation or what you feel are sound financial habits.

  1. Spending:
    You know where your money is being spent.
    You know where most of your money is being spent.
    You have no idea where your money is going.
  2. Credit cards:
    You should never use credit cards.
    You should be able to pay off all of your credit card bills each month.
    If you can’t pay them off, you should pay more than the minimum amount due each month.
    You need only pay the minimum amount due each month.
    Transferring balances to delay payments is okay.
  3. Credit cards:
    You should have as many cards as you want. Lots of cards means you can afford them.
    You should have no more than two or three cards of any kind.
    Retail store cards and bank cards are the same thing.
    You can have many cards as long as you pay them all off each month.
  4. Credit cards:
    You should always make your payments by the due date.
    It is okay if your payments are sometimes late.
    Your interest rate will stay the same whether your payment is late or not.
    Late payment penalties are not that bad.
  5. Housing:
    Owning a home builds equity while renting does not.
    Renting is better than owning a home if you move frequently.
    Your rent or house payment should not be more than 30 percent of your take-home pay.
    Sharing rent with a roommate is a sign of failure.
  6. Savings:
    It is okay to use savings for day-to-day living expenses.
    It is okay to use savings to pay monthly bills.
    You should have 1-3 months of living expenses saved.
    You should have 3-6 months of living expenses saved.
    Savings are a nice thing to have, unless you can’t afford to save.
  7. Emergency Savings:
    You should keep your savings at home.
    You should keep your savings in a savings account at a bank.
    You should keep your savings in 6 or 12 month certificates of deposit (CDs).
    You should keep your savings in government savings bonds.
  8. Transportation:
    You drive your car until it no longer runs.
    You buy a new vehicle every few years.
    You finance your vehicles for a short-term.
    You rely on public transportation.
    You carpool.
  9. Transportation:
    You like to pay cash for vehicles.
    You should make a down payment of 20-50 percent of the cost of the vehicle.
    You should make a down payment of less than 20 percent of the cost of the vehicle.
    Making a down payment is not important.
  10. Transportation:
    You should finance a vehicle for 6 to 8 years.
    You should finance a vehicle for 4 to 5 years.
    You should finance a vehicle for 2 to 3 years.
    You should never finance a vehicle.
  11. Vacation:
    You should pay for a vacation by saving money in advance.
    You should pay for a vacation with your credit cards, as long as you pay them off within 3 months.
    You should pay for a vacation by using credit cards and start a long-term payoff plan. Otherwise, you will never go on vacation.
  12. Retirement:
    You have a job-related retirement plan, but you can’t afford to contribute.
    You have a job-related retirement plan, but you make better investment decisions on your own.
    Your retirement will be funded by the government.
    You contribute to a retirement plan and make it a savings priority.
  13. Retirement accounts:
    You prefer just the stock of the company you work for.
    You prefer only mutual funds.
    You prefer only investing in real estate.
    You prefer only buying government bonds.
    You prefer a diverse approach and combine your investing methods.
If you are a human, do not fill in this field.

Copyright © 2000 - 2017, International Finance Corporation. All Rights Reserved.

© International Finance Corporation [Year of First Publication].  All rights reserved.
2121 Pennsylvania Avenue, N.W.
Washington, D.C. 20433
Internet:  www.ifc.org
 
The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law.  IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or  liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon

2121 Pennsylvania Avenue, N.W., Washington, D.C. 20433, www.ifc.org

The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law.  IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or  liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon.

 Share  Print Version  Email
Comments &Ratings (0)
If you are a human, do not fill in this field.
Click stars to rate.
   Comments are truncated at 1000 characters

 

Discussion