You can tell a lot about a person’s financial fitness by what they know and do. Below are 35 questions that can be answered in one of three ways: yes, no, or unsure. Answer each question, and give yourself one point for each “yes” answer. The higher your score, the better your financial fitness.
1. I write checks (bank or credit union or brokerage firm) to pay bills.
2. I reconcile my monthly checking account statement each month.
3. I read at least one personal finance book or magazine per month.
4. I pay my bills when they are due.
5. I have credit accounts in my name.
6. My credit card(s) is/are at a competitive interest rate.
7. I have a list of all my credit card numbers and contact numbers in case they are lost or stolen.
8. I check my credit card statements against my receipts on a monthly basis.
9. I pay the entire balance due on my credit card bill each month.
10. I obtain a copy of my credit report annually to check its accuracy.
11. I have a good credit rating (no negative remarks and a credit score of 700 or above).
12. I know how much money I spend each month to live and can account for my spending.
13. I have a monthly spending plan/budget.
14. I have a savings account in my own name.
15. I plan ahead for large expenses such as insurance premiums, holiday shopping, and appliance replacement.
16. My monthly credit card payments are less than 20 percent of my take-home pay.
17. I save a minimum of 5 percent of my income (10 percent is even better!).
18. My home and valuables are adequately insured.
19. I have a written, photographic, and/or videotaped record of my household goods.
20. I have an emergency fund of six months of income easily available in a savings account, money market fund, or CD.
21. I know what Social Security or other benefits will be available to me at retirement.
22. I can locate my family records: marriage, birth, divorce, and death.
23. I can locate the certificates and records of my stocks and bonds.
24. I know where my safe deposit box is located and where the key is kept.
25. I have a list of the important papers that I keep in my safe deposit box and know where this list is located.
26. I can locate my insurance policies: disability, life, health, property, and automobile.
27. I know the kinds and amounts of disability, life, health, and auto insurance protection I have and am comfortable with my coverage.
28. I know the names of the beneficiaries and contingent beneficiaries of my life insurance policies and retirement savings plans.
29. I know the name and address of my insurance agent(s) and financial advisor(s).
30. I have a savings and investment plan for retirement (e.g., 401(k) plan).
31. I have an up-to-date will and can locate it, along with the name and address of my attorney.
32. I have a living will that indicates my health care treatment preferences.
33. I can locate copies of the last three years’ income tax returns.
34. I can prepare state and federal returns for myself.
35. I know my net worth (assets minus debts).
If you score over 30, you are doing extremely well and, between 24 and 29, very well. Scores between 18 and 23 indicate a need to take some action to improve your finances. A score of 17 or less means that your financial health is poor but can be improved by taking action on those items where you indicated a “no” answer.
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