Financial IQ Test
Financial literacy is one of the most consequential and least taught skills in modern education. Research shows that people in the bottom quartile of financial literacy accumulate less than one-third the wealth of those in the top quartile — at the same income level. Test where you actually stand.
Financial IQ Test
10 questions from Basic to Advanced. Compound interest, inflation, diversification, P/E ratios, tax-loss harvesting. Each answer includes an explanation. Most people fail.
~5 minutes · Learn while you play
01 /How to Play
- Answer 20 multiple-choice questions on financial concepts.
- Questions range from basic (inflation) to advanced (tax-loss harvesting).
- No calculator needed — these test conceptual understanding.
- Your score reveals your financial literacy level and knowledge gaps.
- Each question includes an explanation of the correct answer.
02 /The Science
Financial literacy — the ability to understand and apply financial concepts — is measured using Lusardi and Mitchell's Big Three financial literacy questions (interest compounding, inflation, and diversification) and their expanded scales. Research across 140 countries shows financial literacy strongly predicts retirement savings adequacy, debt management, and wealth accumulation independent of income. The OECD Financial Literacy Survey finds that only 52% of adults globally can answer basic compound interest questions correctly. In the US, financial illiteracy costs households an estimated $1,200/year in avoidable fees and suboptimal decisions.
03 /Pro Tips
- Compound interest is the most powerful force in personal finance — and the most underestimated.
- Inflation is a hidden tax. A 3% annual rate halves purchasing power in 24 years.
- Most wealth destruction happens through fees, taxes, and behavioral errors — not market crashes.
- Index fund investing outperforms active management 85%+ of the time over 10-year periods.
- The most valuable financial skill is starting early. Time in market beats timing the market.