The 3-Question Money Literacy Quiz
Just three questions. If you can answer all three correctly, you understand how money works better than most people — even many who earn a lot. No sign-up, no spam. Answer, get your score, and learn from the explanations.
1. If you invest $1,000 that grows at 7% a year, how many years does it take to roughly double?
Correct — this is the "Rule of 72." Divide 72 by your annual return to estimate years to double: 72 ÷ 7 ≈ 10.3 years. This is compounding — your returns start earning their own returns.
2. If the inflation rate is 4% and your savings earn 1% in interest, what's really happening to your money?
Correct — you're losing purchasing power. Your account grows 1% but prices rise 4%, so buying power drops about 3% a year. That's the "real" return (the return minus inflation). Earning less than inflation means money in a low-interest account quietly shrinks in value.
3. Which statement about the relationship between risk and return is MOST accurate?
Correct. Earning higher returns generally requires accepting more risk, but taking risk doesn't guarantee a reward — some investments fail. The trick isn't to avoid risk, but to take itintelligently (via diversification) so you're not reliant on any single bet.