Comments on: Test Your Financial Literacy in 3 Questions?

By: Alex Fernandes

Alex Fernandes — Tue, 08 Sep 2009 07:48:49 +0000

Good way of testing our own financial literacy. According to me answer of 1. more than $102, 2.less, 3.false. Please let me know it’s right or not.

By: Justin

Justin — Wed, 15 Jul 2009 15:42:40 +0000

I have chosen to have a CIBC, PC Financial and ING account (TFSA and savings).

I have no fees, only make interest, and only the CIBC account requires a $1000 in chequing to wave fees.

By: Connie Walsh

Connie Walsh — Sat, 11 Jul 2009 17:29:35 +0000

And I repeat, I am not being charged for my savings account, but my hypothesis is that most people are (and this is borne out by the numbers) so this survey would not get to the basics of whether they knew about compounding interest, or even simple interest 5 years in a row.

I’m just saying it’s not that they don’t understand financial basics, it’s that their reality does not let the question make sense.

Thank you for trying to educate me. I do appreciate it. I am alright at money, I really love debates. So don’t think I am criticizing you. Although I am criticizing the guy/gal who wrote the survey.

By: Traciatim

Traciatim — Sat, 11 Jul 2009 16:16:02 +0000

Connie, I repeat “If you are being charged for your saving account you need to find a better bank.”.

Only when peoples money start moving will the situation change. Do something about it.

By: Connie Walsh

Connie Walsh — Fri, 10 Jul 2009 17:03:31 +0000

Yep, my cynicism is showing. Yes if you do nothing with your account (don’t get a passbook or a monthly paper statement). If you don’t withdraw more than twice a month. But it cannot be inactive for 2 years…you must deposit or withdraw at least once every 2 years. You would end up with more than 102

From Daily Interest Savings at Scotia

inactive account $20
monthly paper statement $1.50 – $2
update your passbook $2
Interact fee $1.50 + .85
Withdrawal .85
Transfer .85
Bill Payment .85
Direct Payment Purchase .85
Cheque .85

Are you saying that I am cynical because I think banks charge more in fees than they give in interest? Think about it. Of course they do.

By: DAvid

DAvid — Fri, 10 Jul 2009 04:49:57 +0000

Connie,
I pay no monthly service fees on the savings account I have at a major bank. There might be transaction fees on some of the accounts at my bank, but you would end up with more than $110 at the end of five years (not including taxation)if you ran this scenario.

Possibly a bit of research might quell your cynicism?

DAvid

By: Connie Walsh

Connie Walsh — Thu, 09 Jul 2009 16:24:56 +0000

Umm, yes I bank at PC but I don’t thing PC or ING are considered one of the big banks. TD, RBC, CIBC, BMO or scotia would cause you to have less than 100 after 5 years.

Do you think people actually didn’t know that their is such a thing as interest that compounds or were they, like me confused because in reality a 2% interest means you will come out behind because of the usual bank fees.

By: Preet

Preet — Wed, 08 Jul 2009 17:42:03 +0000

Thanks for the answers to Connie’s questions guys! I echo their sentiments – there are a number of non-account-fee savings accounts out there.

@Steve – your answers are correct. To you they seem simple and that’s good, but given that the responses from the studies were so poor it is indicative that there is a big problem out there. Not everyone reads this blog… YET!!!!! :)

By: Steve

Steve — Wed, 08 Jul 2009 12:57:21 +0000

Mr.Cheap: I’m just looking for confirmation. I believe the answers I’ve posted are correct and would be very surprised if I’m wrong – but if I am – I’d like to know and more importantly – I’d like to know why. These questions seem so basic that I begin to question myself if there’s a trick in there somewhere.

By: Mr. Cheap

Mr. Cheap — Tue, 07 Jul 2009 19:45:17 +0000

Steve: I think these are the sort of questions that if you need to ask whether your answers are correct or not it indicates a problem.

Which of your answers are you uncertain about and why?