Money Essentials

1. What are the warning signs you've got too much debt?
    You have less to spend than you used to
    You can't sleep because you worry about your bills
    You don't have an emergency fund
    All of the above
2. Ideally, all your monthly debt, including your mortgage, should amount to no more than how much of your gross income?
    20 percent
    36 percent
    42 percent
    50 percent
3. What's the worst kind of debt you can have?
    Credit card
    School loan
    Car loan
4. If you make minimum payments on your credit card balance every month:
    You're fine and can continue to charge
    You can use any money you have left over to invest in stocks
    It may take decades and thousands of dollars to pay it off
    You risk ruining your credit rating
5. What should you look for on your credit reports?
    Late payments
    Charges you didn't make
    Accounts you thought you had closed
    All of the above
6. When buying a home, you should put every dime you've got toward the down payment.
7. Good debt is:
    Borrowing money for anything you really want but can't afford
    Borrowing money for anything you really need but can't afford
    Borrowing money to pay off your child's debt
    An oxymoron
8. When should you borrow against a 401(k)?
    When you have no other options
    When you're young
    When you expect to be in a lower tax bracket in retirement
    When you plan on quitting your job
9. It's best to take out a home equity loan when:
    You want to put in a pool
    You want to pay off your credit card debt
    You want to renovate your kitchen
    You want to take a much-deserved second honeymoon
10. What's more important when taking out a car loan?
    You get the monthly payment you asked for
    You get a competitive interest rate