Do you know how to manage your money?

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Test your personal money management skills

Managing money the right way is crucial at any point in your life. If you're finally earning the salary you deserve, now is the chance to practice smart financial habits and ensure a glowing future. Take our quiz to rate your personal money management skills.

 

Do you know how to manage your money?

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  1. What is the best way to follow a monthly budget?

  • Write down your daily purchases in a small notebook.

  • Use your debit card for most purchases, then track your spending with Online Banking

  • Use budgeting software to create a spreadsheet of your income and expenses

  • All of the above

Submit

Yes, all of the above are good steps to take in managing money so you can stick to a budget. Choose the method that is easiest for you, or combine them. Your budget helps you decide how best to manage your income. By tracking your spending and saving, you are more likely to cut down on your expenses so you have money for the things you really care about.

No, all of the above are good steps to take in managing money so you can stick to a budget. Choose the method that is easiest for you, or combine them. Your budget helps you decide how best to manage your income. By tracking your spending and saving, you are more likely to cut down on your expenses so you have money for the things you really care about.

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  1. How can you reduce the bank fees you pay for your checking account?

  • Use the ATM of your own bank's network

  • Ask if your bank will waive monthly maintenance fees if you maintain a certain balance

  • Set up overdraft protection service to automatically transfer funds from your savings or credit card to your checking account if you’re about to overdraft

  • All of the above

Submit

Yes, all of the above are good ways to manage the fees you pay for your checking account, and an important aspect of personal money management.

No, all of the above are good ways to manage the fees you pay for your checking account, and an important aspect of personal money management.

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  1. Which of the following is a good way to avoid paying late fees for overdue bills?

  • Set aside the money for bill payment in your savings account 

  • Mark the payment dates on your calendar

  • Use Online Banking to set up recurring payments for regular bills

  • All of the above

Submit

Yes, the correct answer is all of the above. Part of managing money properly is planning ahead for payments by setting aside money in your savings account and by marking bill due dates on your calendar. Use Online Banking to set up recurring payments for regular bills, as well as check your bank account statements and transfer money between accounts. Pick whatever method works best for you, or use them in combination.

No, the correct answer is all of the above. Part of managing money properly is planning ahead for payments by setting aside money in your savings account and by marking bill due dates on your calendar. Use Online Banking to set up recurring payments for regular bills, as well as check your bank account statements and transfer money between accounts. Pick whatever method works best for you, or use them in combination.

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  1. What's the most accurate way to find out if you have enough in your checking account to make a purchase with debit?

  • Send a text message to your bank requesting your account balance

  • Use the calculator application on your phone

  • Call your spouse to ask if they know your account balance

  • Mentally add up your expenses over the past few days

Submit

Yes, the correct answer is to text message to your bank requesting your account balance. Text Banking1 is a great way to quickly find out how much money you have in your bank accounts. If you sign up for Text Banking from Bank of America, you can also check your payment due date and see recent transactions on your credit card.

No, the correct answer is to text message to your bank requesting your account balance. Text Banking1 is a great way to quickly find out how much money you have in your bank accounts. If you sign up for Text Banking from Bank of America, you can also check your payment due date and see recent transactions on your credit card.

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  1. How much should you save in an emergency fund?

  • Two months' worth of living expenses

  • One full paycheck

  • Six months' worth of living expenses

  • A credit card counts as an emergency fund

Submit

Yes, you should save at least six months' worth of living expenses to protect you and your family in case of a job loss or medical emergency. To get started building your emergency fund, have a set amount transferred from your checking account to a separate savings account each month. Even $100 a month will help you gradually build your cushion.

No, you should save at least six months’ worth of living expenses to protect you and your family in case of a job loss or medical emergency. To get started building your emergency fund, have a set amount transferred from your checking account to a separate savings account each month. Even $100 a month will help you gradually build your cushion.

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  1. What's the best way to save for a goal, such as purchasing a car?

  • Review your budget every day

  • Have a set amount automatically transferred from each paycheck to your savings account

  • Consider using tax-deferred savings vehicles

  • Wait until the end of the month, and then transfer the leftover money into your savings account

Submit

Yes, the best way to save is to have a set amount automatically transferred from each paycheck to your savings account. If you wait until the end of the month, there may not be much left, so set up automatic transfers to coincide with when your paychecks are deposited.

No, the best way to save is to have a set amount automatically transferred from each paycheck to your savings account. If you wait until the end of the month, there may not be much left, so set up automatic transfers to coincide with when your paychecks are deposited.

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  1. If you're in the market for a new credit card, what are some things you should consider when comparing cards?

  • The matching plan with your 401(k)

  • The annual percentage rate (APR), fees, and rewards

  • Your most recent credit report

  • The payment schedule

Submit

Yes, the annual percentage rate (APR), fees and rewards are all factors you should consider when comparing credit card offers. Fees can include the annual fee, transaction fees, and late fees, while benefits might include travel rewards and cash back. Your credit report is an important personal money management tool, and will give you an idea of how lenders view you, but it won’t help you choose a new credit card.

No, the annual percentage rate (APR), fees and rewards are all factors you should consider when comparing credit card offers. Fees can include the annual fee, transaction fees, and late fees, while benefits might include travel rewards and cash back. Your credit report is an important personal money management tool, and will give you an idea of how lenders view you, but it won’t help you choose a new credit card.

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  1. Which of the following is a warning sign that you have too much debt?

  • You can only make the minimum payment due on your credit card bills

  • You’ve started getting calls from collection agencies and creditors

  • You frequently pay one or more of your bills late

  • All of the above

Submit

Yes, all of the above are warning signs that you can't afford your amount of debt. If you're struggling with debt, don't avoid the issue. First talk to your creditors who may be able to help you with managing money. It might also be helpful to talk to an accredited credit counselor.

No, all of the above are warning signs that you can't afford your amount of debt. If you're struggling with debt, don't avoid the issue. First talk to your creditors who may be able to help you with managing money. It might also be helpful to talk to an accredited credit counselor.

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  1. What is one benefit of saving in a 401(k) plan?

  • It's a great way to save for a short-term goal like a wedding

  • You’ll pay less tax on your income, since your 401(k) contributions reduce your taxable income

  • The deposits are insured by the Federal Deposit Insurance Corporation (FDIC)

  • You will receive quarterly disbursements direct deposited in your account

Submit

Yes, you’ll pay less tax on your income since your 401(k) contributions reduce your taxable income. And your savings will grow tax-free until you retire. You can choose from a wide range of investments, and should adjust your investments according to your risk tolerance and age.

No, you’ll pay less tax on your income since your 401(k) contributions reduce your taxable income. And your savings will grow tax-free until you retire. You can choose from a wide range of investments, and should adjust your investments according to your risk tolerance and age.

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  1. What is the advantage of starting to save for retirement when you start working?

  • You potentially can reduce your annual income taxes

  • You can take advantage of longer compound growth in tax-deferred savings vehicles

  • If you wait to start saving for retirement until later in life, you may have to save more each year to catch up

  • All of the above

Submit

Yes, all of the above are advantages of getting an early start on retirement saving. Investing in retirement saving vehicles like a 401(k) plan and an Individual Retirement Account (IRA) can reduce your current taxes. They may also allow you to use compound growth, letting the money grow over the long-term. For example, if a 25-year-old saves $5,000 a year for 10 years and leaves the balance to grow at 8% annual interest, they could have almost $800,000 by age 65. If you start saving later, you will need to catch up for lost time by saving more each year.

No, all of the above are advantages of getting an early start on retirement saving. Investing in retirement saving vehicles like a 401(k) plan and an Individual Retirement Account (IRA) can reduce your current taxes. They may also allow you to use compound growth, letting the money grow over the long-term. For example, if a 25-year-old saves $5,000 a year for 10 years and leaves the balance to grow at 8% annual interest, they could have almost $800,000 by age 65. If you start saving later, you will need to catch up for lost time by saving more each year.

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You scored: x correct out of y.

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1Bank of America does not charge for Text Banking. However, your mobile service provider may charge for sending and receiving text messages on your mobile phone. Check with your service provider for details on specific fees and charges that may apply. 

Some accounts and services, and the fees that apply to them, vary from state to state. Please review the information for your state in the Personal Schedule of Fees (at www.bankofamerica.com/feesataglance or at your local Banking Center) and in the Online Banking Service Agreement at www.bankofamerica.com/serviceagreement.

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