Measure Your Financial Literacy with This Basic Test
June 24, 2014 by Bill Coffin
FINRA, the Financial Industry Regulatory Authority, has published this handy five-question quiz to determine one’s basic level of financial literacy. Not surprisingly, most Americans would fare more poorly on this than they would like to think. And that’s depressing, really, when you consider that these questions really are not all that difficult.
Any advisor would do well to use this as a starting prop for a sit-down with prospects to get a sense of how much they know about money, and how much instruction and help they will need. A lot of producers work with clients who hardly understand money, let alone can identify realistic needs, plans for serving those needs, or knowing what products will best get them there. To serve your clients best, you must begin at the beginning.
