How financially savvy are you really?

Most of us claim to be financially literate, but we may not know as much about finance as we think.

In a recent survey by Ipsos Reid for LowestRates.ca, 78 per cent of respondents claimed to be financially literate. Yet, when tested on their financial knowledge, nearly 60 per cent failed to answer majority of the questions correctly.

According to this test by Ipsos containing 15 true-or-false questions, it seems Canadians are especially unclear about financial terminology concerning mortgages, auto insurance, and tax-free savings accounts.

Take the test bellow to see how financially savvy you really are. Do you think you can get a perfect score?

How financially savvy are you?

1) A mortgage term refers to the length of time you need to pay off your mortgage.
2) You must pay for government insurance on mortgages where you put down less than 20% of a down payment – unless the home is worth $1 million or more.
3) A car that is more expensive always costs more to insure than a cheaper car.
4) You never have to report interest and profits gained in your TFSA when filing taxes.
5) You can have multiple TFSA accounts with different banks at the same time.
6) Your auto insurance automatically goes down when you turn 25.
7) Applying for a credit card can negatively affect your credit score.
8) Home insurance can sometimes protect you if your dog bites someone in your home.
9) Your home insurance will always cover you if a tree falls on your home.
10) Checking your credit score has no impact on the score itself.
11) The colour of your car affects your car insurance rate.
12) All banks charge you money to have a chequing account.
13) Auto insurance premiums can be cancelled mid-way through their term.
14) You need to be licensed to buy stocks in Canada.
15) There’s no need to get travel insurance if you’re travelling within Canada between provinces.

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