How Well Do You Know Financial Terms?

APR, net worth, inflation, compound interest... these aren’t just buzzwords—they shape your money moves. Let’s find out how fluent you really are in financial language.

Instructions: Pick the answer that sounds most like you. Tally your points and check your score at the end!

1. What is “net worth”?

A. Your total assets minus your total liabilities. (5 points)

B. How much money you have in the bank. (3 points)

. Your income after taxes. (1 point)

D. Your credit score or how much you’re “worth” to lenders. (0 points)

2. What does APR stand for?

A. Annual Percentage Rate—it shows how much interest you’ll pay over a year. (5 points)

B. Annual Pay Return—it’s your yearly income from an investment. (3 points)

C. Annual Payment Rate—it’s the cost of your credit card. (1 point)

D. I’ve seen it on credit card ads, but I don’t know what it means. (0 points)

3. What is compound interest?

A. Interest that earns interest over time—money grows faster. (5 points)

B. A higher interest rate from investing in real estate. (3 points)

C. A fee banks charge when you miss a payment. (1 point)

D. I’m not sure, but I know it’s a good thing. (0 points)

4. What does “diversify” mean in investing?

A. Spreading your money across different types of investments to reduce risk. (5 points)

B. Buying different stocks within one company. (3 points)

C. Investing only in safe assets like savings accounts. (1 point)

D. Something to do with real estate and crypto, I think? (0 points)

5. What’s a credit utilization ratio?

A. The percentage of your available credit you’re using. (5 points)

B. How many credit cards you have. (3 points)

C. Your total credit card debt. (1 point)

D. No clue—I’ve never heard of that. (0 points)

6. What does “liability” mean in personal finance?

A. Any debt or financial obligation you owe. (5 points)

B. A risk or danger in your finances. (3 points)

C. Anything expensive or high maintenance. (1 point)

D. Something legal? I’m not sure. (0 points)

7. What is a budget?

A. A spending plan that helps you manage your income and expenses. (5 points)

B. A tool for poor people or when money is tight. (3 points)

C. A list of bills and things you want to buy. (1 point)

D. Something I’ve heard about but never used. (0 points)

8. What’s an emergency fund?

A. Money set aside for unexpected expenses like car repairs or job loss. (5 points)

B. A savings account for vacations or birthdays. (3 points)

C. Extra money you keep in your checking account. (1 point)

D. I’ve heard of it but I don’t have one. (0 points)

SCORE BREAKDOWN

35–40 Points: Financial Term Genius

You know your money language inside and out! You’re financially fluent and likely making empowered money moves. Keep growing and teaching others along the way!

25–34 Points: Financially Fluent (Almost There!)

You’ve got a solid grip on financial basics, but there’s room to sharpen your understanding. Keep reading, keep learning—you’re well on your way to mastery.

15–24 Points: Learning in Progress

You’re curious and aware, but still building your financial vocabulary. Now’s the perfect time to dive deeper—because what you don’t know could cost you!

Below 15 Points: Financially Foggy

It’s all feeling a little fuzzy right now—but don’t worry! Everyone starts somewhere. This is your chance to level up your money knowledge one term at a time.