Most clergy pride themselves on being biblically literate. They realize that biblical literacy is not a one-shot affair; they continue to dedicate time and energy to scriptural study throughout our careers. Yet like many people they don't commit to financial education in the same way.
For most Americans, financial literacy is not a consideration according to a recent article in Forbes magazine. The article indicates just four in seven Americans can be categorized as ‘financially literate,’ and only 24 percent of millennials understand basic financial concepts. Too often, the article finds, not taking control of their personal finances results in unmanageable debt, financial hardship, and insufficient savings for retirement.1
Take a few minutes to test your financial literacy.
1. Which of these steps is likely to have the most favorable impact in trying to meet your retirement goals?
The answer is b, "start investing as early as possible to benefit from compounding." By investing early and taking advantage of compound interest, these steps will have the most favorable impact on meeting your retirement goals.
2. When creating a budget, you should ask yourself the following questions.
The answer is d, "all of the above." Asking yourself, what is my income, debt and expenses are some common questions to answer prior to creating a budget.
3. Where should you keep your emergency fund? Check all that apply.
The answers are c and d, "savings account and credit union." You should keep your emergency fund in a liquid account that is easily accessible. The stock market is too volatile and should be for long term investing. Cash at home is not ideal since your money is not earning any interest. When an emergency strikes you need access to that money quickly.
4. No matter what your tolerance for risk is, what is one step you shouldn't take when there is a downturn in the market?
The answer is d, "sell your investments when there is market volatility." Remember it is normal for the market to go up and down, it is important not to panic or make any emotional decisions that can affect your investment growth over the long haul.
5. When purchasing term life insurance, a good starting point is to get a policy that takes you to retirement age and replaces how much times your salary?
The answer is c, "10x -20x". If you are 45 years old and looking to retire by 65, a 20-year term life policy may be best. A policy 10 – 20 times your salary allows for a payout that provides your survivors with several years of needed income if you die.
Thank you for joining the MMBB mailing list. You will begin to receive information soon.
Translations of any materials into languages other than English are intended solely as a convenience to the non-English-reading public. We have attempted to provide an accurate translation of the original material in English, but due to the nuances in translating to a foreign language, slight differences may exist.
Las traducciones de cualquier material a idiomas que no sean el inglés son para la conveniencia de aquellos que no leen inglés. Hemos intentado proporcionar una traducción precisa del material original en inglés, pero debido a las diferencias de la traducción a un idioma extranjero, pueden existir ligeras diferencias.
You will be linking to another website not owned or operated by MMBB. MMBB is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. The inclusion of any hyperlink does not imply any endorsement, investigation, verification or monitoring by MMBB of any information in any hyperlinked site. We encourage you to review their privacy and security policies which may differ from MMBB.
If you “Proceed”, the link will open in a new window.
Back to Top
Next