This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 out of 4 Millennials Can't Answer These 5 Simple Financial Questions: Can You?

NEW YORK (MainStreet) Maybe Millennials should be asking for a refund on those student loans. Less than one-quarter (24%) of young adults can correctly answer four or five questions in a simple five-question quiz covering financial basics. And among the freshest crop of young adults -- those aged 18 to 26 -- only 18% were able to answer four or five questions correctly.

A new study by the FINRA Investor Education Foundation reveals a startling lack of awareness for financial fundamentals that could further frustrate a generation that has faced unemployment and a dismal economy since entering the workforce.

"Many Millennials began their adult lives in the midst of the worst economic downturn in generations, and our survey reveals just how deeply and broadly the Great Recession has marked the financial lives of this generation of Americans," says FINRA Foundation President Gerri Walsh. "Unfortunately, far too many Millennials trying to cope with these economic conditions have low levels of financial literacy and are wrestling with concerns about their debt."

However, the study also revealed that despite the greater financial strain that Millennials face, they express levels of financial satisfaction that are similar to Gen Xers and Baby Boomers.

The survey was conducted online, sampling 25,509 American adults (approximately 500 per state, plus D.C.), over a four-month period, July to October 2012, weighted by age, gender, ethnicity and education.

Here are the five survey questions:

  • Suppose you have $100 in a savings account earning 2% interest a year. After five years, how much would you have? More than $102, Exactly $102, Less than $102, Don't Know
  • Imagine that the interest rate on your savings account is 1% a year and inflation is 2% a year. After one year, would the money in the account buy more than it does today, exactly the same or less than today? More, Same, Less, Don't Know
  • If interest rates rise, what will typically happen to bond prices? Rise, fall, stay the same, or is there no relationship? Rise, Fall, Stay the same, No relationship, Don't Know
  • True or false: A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less. True, False, Don't Know
  • True or false: Buying a single company's stock usually provides a safer return than a stock mutual fund. True, False, Don't Know

You can take the online quiz here and compare your score to the national and your state's average.

--Written by Hal M. Bundrick for MainStreet,/p>

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.98 +0.97 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs