How good are you with money?

Weekend Argus (Saturday Edition) - - PERSONALFINANCE -

Test your own fi­nan­cial lit­er­acy and fi­nan­cial well­ness against th­ese Fi­nan­cial Ser­vices Board (FSB) mea­sures.They are di­vided into four do­mains: 1. FI­NAN­CIAL CON­TROL If you have “high fi­nan­cial con­trol” you will tend to be in­volved in daily fi­nan­cial de­ci­sion-mak­ing pro­cesses, ex­hibit a care­ful ap­proach to per­sonal fi­nances, pre­fer to save rather than spend money; and live in a house­hold that bud­gets and is able to make ends meet. 2. FI­NAN­CIAL PLAN­NING You score well in this do­main if you tend to set fi­nan­cial goals and work hard to meet them, pre­fer­ring to save for the long term; worry about to­mor­row rather than yes­ter­day; have an emer­gency fund in place; and have man­aged to save re­cently (ei­ther through a for­mal sav­ings prod­uct or by in­for­mal means). Wonga.com should take note of this do­main, par­tic­u­larly the emer­gency fund, which should equal at least three times, but prefer­ably six times, your monthly in­come. 3. FI­NAN­CIAL PROD­UCT CHOICE You re­ceive a high score if you:

Have a broad aware­ness of dif­fer­ent types of bank­ing, credit/loan, sav­ings and in­vest­ment (in­clud­ing re­tire­ment fund mem­ber­ship), and in­sur­ance prod­ucts;

Have at least one of each of the four prod­uct types men­tioned above;

Be­lieve you have a clear un­der­stand­ing of which fi­nan­cial prod­ucts you need and un­der­take de­tailed re­search be­fore choos­ing a prod­uct; and

Have no re­grets about re­cent fi­nan­cial prod­uct de­ci­sions (last year) and have not used an un­suit­able prod­uct in the past five years. 4. FI­NAN­CIAL KNOWL­EDGE AND UN­DER­STAND­ING In this do­main you must be fa­mil­iar with most or all of the fol­low­ing ba­sic con­cepts: ba­sic math­e­mat­i­cal di­vi­sion, ef­fects of in­fla­tion, in­ter­est paid on loans, in­ter­est earned on de­posits, com­pound in­ter­est, risks of high-re­turn in­vest­ments, ef­fects of in­fla­tion on the cost of liv­ing and risk di­ver­si­fi­ca­tion.

If you do not have most of th­ese at­tributes, you need to do some­thing about it.

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