Personal Finance Quiz from Kiyosaki

The publishers of “Rich Dad’s Increase Your Financial IQ” by Robert Kiyosaki supplied us with the following that you can use to test your financial IQ as gauged by Kisyosaki. (Answers at the end).

What’s Your Financial IQ?

1. Which of the following is not an asset?
a. Gold
b. The Corvette you bought for your 40th birthday
c. A business
d. Wheat

2. On average, Americans save how much of their income?
a. Enough to buy a new flat screen TV
b. Why save when you own a house?
c. They don’t save. They owe.

3. A retirement plan that is paid for by your employer is known as a:
a. Defined benefit plan
b. A miracle
c. Both

4. What kind of income is the hardest to protect from financial predators such as taxes?
a. The dividends that just got cut from the financial stocks you bought
b. The $50 and rocking CD collection you inherited from your uncle Craig
c. The forty hours worth of cash your company pays you for sixty hours of work

5. What is the best way to create a budget surplus?
a. Cut down on expenses by buying a fuel efficient car
b. Get a higher paying job to make more money
c. Saving and investing before paying your bills

6. An example of leveraging your money is:
a. Putting money in an interest bearing savings account
b. Buying investment real estate with a bank loan
c. Going to a local casino.

7. The best way to invest is in a diverse portfolio of stocks, bonds, and mutual funds. True or False?

8. The key to becoming wealthy is:
a. Only having two scotches per night
b. Buying high and selling low
c. Selling the CD collection you inherited from Uncle Craig
d. Increasing your financial intelligence

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Answers: 1. (B) 2. (C) 3. (C) 4. (C) 5. (C) 6. (B) 7. (False) 8. (D)