2006 Jumpstart Questionaire Part 5 at Catch a Gideon

November 7th, 2006 by digerati

This survey establishes that there are serious misconceptions about various financial topics. The questions are not difficult, bu the average score on the survey was only 52.4%! Take a look at the questions and see how many you know. Starred answers are the correct ones. I’ve added some notes after each question.

21. Many young people receive health insurance benefits through their parents. Which of the following statements is true about health insurance coverage?

5.8% a) Young people don’t need health insurance because they are so healthy. Tragically this isn’t true.

33.0% b) You continue to be covered by your parents’ insurance as long as you

live at home, regardless of your age. I’ve found that my insurance covers me until 25 unless I am covered by my own policy.

20.9% c) You are covered by your parents’ insurance until you marry, regardless

of your age. Too many people apparently think this. They may be very disappointed (and in financial trouble) when they have an accident or other health problem.

*40.3% d) If your parents become unemployed, your insurance coverage may stop,

regardless of your age. This is generally true that a policy will stop when you no longer work for who ever was paying for it.

22. Mike and Dave work together in the finance department of the same company and earn the same pay. Mike spends his free time taking work-related classes to improve his computer skills; while Dave spends his free time socializing with friends and working out at a fitness center. After five years, what is likely to be true?

*71.8% a) Mike will make more money because he is more valuable to his

company.

11.6% b) Mike and Dave will continue to make the same money.

10.9% c) Dave will make more because he is more social.

5.7% d) Dave will make more because Mike is likely to be laid off.

This is a hard question and why so many smart people do not necessarily do better (in pay) than others. One would assume that A is true since that makes sense. But of course if you socialize with the right people you can get moved up very quickly. Also, a recent study (can’t find the link) says that people who drink more make more money. This obviously reflects on the social aspect of alcohol, not its other properties.

23. If your credit card is stolen and the thief runs up a total debt of $1,000, but you notify the issuer of the card as soon as you discover it is missing, what is the maximum amount that you can be forced to pay according to Federal law?

55.8% a) nothing

*15.1% b) $50 Is this a fee to the bank? Many (most? all?) cards offer no payment on fraudulent charges.

17.2% c) $500

11.9% d) $1000

24. Which of the following statements is NOT correct about most ATM (Automated Teller Machine) cards?

*66.8% a) You can get cash anywhere in the world with no fee.

12.3% b) You must have a bank account to have an ATM Card.

9.9% c) You can generally get cash 24 hours-a-day.

11.0% d) You can generally obtain information concerning your bank balance at

an ATM machine.

25. Mark has a good job on the production line of a factory in his home town. During the past year or two, the state in which Mark lives has been raising taxes on its businesses to the point where they are much higher than in neighboring states. What effect is this likely to have on Mark’s job?

*59.0% a) Mark’s company may consider moving to a lower-tax state, threatening

Mark’s job.

15.3% b) He is likely to get a large raise to offset the effect of higher taxes.

17.1% c) Higher business taxes will cause more businesses to move into Mark’s

state, raising wages.

8.6% d) Higher business taxes can’t have any effect on Mark’s job.