California Financial Foundation Test ResultsJoseph Salvadico2023-05-09T15:46:53+00:00

California Financial Foundation Test Results

68.8%

Average Score of 68.82% to Date

58.5%

Percentage of Passing Scores to Date

+.97%

Δ: Change in Averages from Previous Data: +.97%

Participants to Date

Note: The average score for 15- to 18-year-olds is 52.56%

Statistics by Answer

Question 1.

Loan payments are based on:

1.72% - APR

3.28% - Interest Rate

1.60% - Length of the loan

54.33% - B & C only

39.08% - All of the above

Question 2.

If the current inflation rate is at 3%…

10.11% - Investments in securities (stock market, mutual funds) adjust to market conditions by 3%

2.73% - 401k plans adjust to market conditions by 3%

72.40% - My net income needs to increase by 3% to maintain my current lifestyle.

9.04% - My savings need to increase by 3% to maintain my current lifestyle

5.72% - Uncertain

Question 3.

If you are unable to pay off the entire balance you owe in credit card debt, the best way to pay off the balance is to _____.

16.83% - Pay more than the minimum monthly payments on all your credit cards

11.49% - Pay off the card with the lowest balance first

64.10% - Pay the maximum your budget allows on the card with the highest interest rate.

6.08% - Pay the maximum payment on the card with the highest balance

1.50% - Uncertain

Question 4.

If inflation is at 2%, in what option below are you most likely to lose 2% purchasing power?

3.99% - Stock market

2.54% - Real estate

56.85% - Cash

3.81% - Commodities

2.26% - Bonds

28.43% - All of the above

2.13% - Uncertain

Question 5.

What is risk-based pricing?

3.68% - The cost of the deductible and premium added together

10.61% - The amount of money the insurance company pays toward your claim and the adjustment to your interest rate made by your lender

68.30% - Basing your insurance or loan pricing on the risk you pose to the company.

14.13% - All of the above

3.28% - Uncertain

Question 6.

Which of the following categories influence your FICO score?

1.61% - Outstanding debt

3.3% - Payment history

2.23% - Types of credit used

28.89% - A & B only

62.14% - All of the above

1.84% - Uncertain

Question 7.

What four main areas do lenders review to qualify a loan applicant?

6.76% - Credit, cash, education, and income

58.64% - Equity, credit history, assets, and debt-to-income ratio

8.57% - Equity, cash on hand, asset report scoring, and debt-to-income ratio

24.53% - Liquidity, credit history, asset report scoring, and debt-to-income ratio

1.51% - Uncertain

Question 8.

The biggest risk of owning long-term bonds for capital preservation is:

20.48% - Falling interest rates

50.8% - Rising interest rates

17.76% - Falling dollar

5.57% - Rising dollar

2.36% - Real estate valuation

3.03% - Uncertain

“With the rapid decline of defined benefit pension plans, reduction of social security benefits, and more complex investment options it is vital that people possess the financial knowledge they need to make qualified investment decisions. There is a multitrillion-dollar retirement funding gap in the US today, and this test demonstrates that the average person lacks sufficient knowledge to properly plan for their golden years. ”

– Vince Shorb, CEO
National Financial Educators Council

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