Does your college-bound child really understand how money works? It’s time to find out. Financial literacy is a game-changer for young adults, and before they juggle tuition, part-time jobs, and social plans, testing their knowledge is key. A simple quiz can spark conversations about saving, spending, and preparing for their financial future. Test your child’s financial literacy with these five questions and see how ready they are to handle money without your help.
How Do They Handle Everyday Spending?
Start with the basics. Ask your child how they would create and stick to a budget (if they haven’t already). Do they know how to track expenses or separate needs from wants? If they’re not confident about managing day-to-day costs, college life could quickly become a lesson in unnecessary overdraft fees. A good follow-up is whether they understand how credit cards work—because falling into bad credit habits is all too easy for first-timers.
What Would They Do With $1,000?
Giving your kid a scenario like this reveals their mindset about saving, spending, and investing. Do they instantly think about splurging on gadgets, or would they portion out the cash responsibly? Better yet, do they know what an emergency fund is? Once these conversations start, you can segue into topics like interest rates and how small savings decisions snowball into big benefits over time.
Do They Know How To Read a Paycheck?
Most teens love getting paid but may not understand where their money is going, and in college, every paycheck matters. Ask them if they can read a paycheck and explain deductions like taxes, Social Security, and benefits. Having this conversation today can prevent panic and disappointment when their take-home pay is less than expected. And, once they know the difference between an IRA and a 401K, they can better evaluate the benefits an employer offers. That’s knowledge worth having before their first real job.
Can They Spot a Good Deal?
Sales, discounts, and “buy one, get one free” offers can be deceiving. Test their ability to calculate value: Which is better, 30 percent off or a $10 coupon? What about bulk buying versus smaller quantities? Being savvy about deals can save them (and you) a lot of cash, especially during those dorm shopping binges.
Financial Confidence Starts With Small Lessons
At the end of the day, preparing your child for financial success takes more than just advice. It takes real conversations, examples, and quizzes to make the abstract feel real. These five questions are a great way to test your child’s financial literacy while paving the way for practical, lifelong financial skills. Helping them build confidence now will pay off big later!
