If you’re still worried about the recession, that’s okay.
The drumbeat of economic news can be overwhelming. Mortgage rates go up and down. Credit card debt has become more expensive. Despite the decline in inflation, the Federal Reserve has said it may still need to raise additional rates this year to slow the economy. The stock market is falling after worries about the banking sector caused by the closure of Silicon Valley Bank and Signature Bank.
I’m united My colleagues have put together a quiz to help you determine how current economic events are affecting your finances. There is no right or wrong answer. The questions will help you determine where you stand financially. Your score and our financial advice can help you prepare for what happens if the economy takes a turn for the worse.
1 of 10 questions
Do you have enough money to cover the things you need?
Question 2 of 10 questions
Do you have monthly student loan debt that was difficult to pay off before the pandemic?
3 of 10 questions
Have emergency savings?
Most American adults can’t afford a $400 emergency, such as a car repair or a simple medical bill, without borrowing from a friend or family member, using a credit card, and over time.
The Secure 2.0 Retirement Act passed in 2022 contains two provisions regarding emergency savings. In 2024, retirement plans will give employees two ways to save. Under one rule, they can get up to $1,000 for emergency expenses. This withdrawal is not subject to the usual 10 percent early withdrawal penalty for individuals under age 59½. There is also a provision that, if implemented by the employer, allows employees to contribute to a Roth IRA designated as an emergency fund.
Read more: Michelle Singletary’s Money Stages for Every Age
4 of 10 questions
Do you contribute to a retirement account?
5 out of 10 questions
Do you have credit card debt?
6 out of 10 questions
Do you have to pay for fuel to keep the drive running?
7 out of 10 questions
Looking to buy a home in six months to a year?
8 out of 10 questions
Do you have a fixed rate mortgage?
9 out of 10 questions
Has the rent gone up significantly?
10 out of 10 questions
Looking to buy a new or used car soon?
You have to answer each question to see the result. You don’t exist questions 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10.