A financial quiz for the holiday weekend
Keep positive financial thought for this Cup Match weekend, and keep it real by knowing that just about every social life event revolves around relationships and money.
Having said that, itís understandable that you arenít going to be in much of a mood to read some finance article.
Instead, we are starting the First Cup Match Quiz, a light-hearted financial quiz that you can answer or not. The real results will be published in a few weeks, although they may not be answers that you agree with. If you feel ambitious, you can send me your answers via e-mail to email@example.com.
Here are the questions:
1. You are so annoyed because your home town-team didnít win after you went out and invested in a colour-supporting duds. Do you say:
1.1. This is the last time I support that group!
1.2. Yah, and to make matters worse, I didnít really meet any one of interest in spite of my new look and now my credit-card balance is climbing again.
1.3. I canít really complain; itís fun and itís only once a year.
1.4. Next year, I vow to be more sensible. Itís only a game.
2. Your friend, spouse, partner, love interest wants to take the whole family camping. You hate camping: the sand, the flies, the hard ground, the endless barbecuing, the cost ó always more than you planned, the trips back home for all the stuff that was forgotten (you know you will be the one who has to do that), the trying to sleep when everyone else is partying until dawn. What do you do?
2.1. Put your foot down with an adamant no.
2.2. Say, well, fine, you all can camp out, Iím staying home.
2.3. Put all family partiers on a camping budget.
2.4. Be mature about the whole thing and grin and bear it.
3. We think the use of money is straightforward, cash in ó cash out. Whatís the deal? How we actually think about money spending and savings decisions is driven by varying human complexities: need, emotion, impulse, habit, values, social pressure, etc.
See if you can categorise the following purchase situations below based upon our human characteristics above.
3.1. That new designer tote.
3.2. A six-pack of beer and three bags of chips even though you are on a diet.
3.3. A dozen red roses.
3.4. The electricity bill.
3.5. Donation to childrenís camp.
3.6. Speedy black auto, serious grill features.
3.7. Frozen mac ní cheese
4. You love the conviviality; the Crown and Anchor so busy; concession stands of terrific traditional Bermuda food. It is old home week ó a great chance to reconnect with friends. Howís yah family? Excitement is catching; your friends egg you on to put some cash on the C&A table ó it is all in fun, they say.
4.1. You say no, I donít gamble;
4.2. OK, youíll wager, but only a small minimum.
4.3. Golly gee, you are winning! What should you do now? The friends are cheering ó take the money while you are ahead!
4.4. No, you decide to double down because you could walk away with a weekís pay.
5. Vehicle comparison shopping, and looking for the best buy for the buck. One new car model has an estimated cost of $50,000. A more economical model displays a $35,000 ticker. You intend to drive the new car for at least 12 years travelling 10,000 miles per year. The $50,000 model makes 25 miles per gallon, while the $35,000 car comes in at 18mpg. We will use gas cost at $7 per gallon (yes, I know that may not be the real cost). Which car is the better buy over that timeframe based upon these facts only? Note! no cheating ó you have to exclude all other issues and calculate total cost of car plus total gas consumption cost.
5.1. The $50,000 car.
5.2. The $35,000 car.
5.3. I could take a cab every work day for the same $50,000 for the same timeframe and never have to think about driving at all.
5.4. To heck with all this math, Iím just going to take the bus.
6. Your net earnings in your Bermuda paycheque are the result from your gross wages minus deductions for payroll tax, social insurance, pension scheme, health insurance, and in some cases, group term life insurance. Which deductions are actually a form of personal savings? Choose all that are applicable:
6.1. Payroll tax
6.2. Social insurance
6.3. National pension scheme or other
6.4. Health insurance
6.5. Group term life insurance
7. Regrettably, one of your relatives (your favourite aunt loved by all) passed on to a better place. She never got around to making a will, even though she had a successful career, pension, savings, property, and so on. Yes, this ďno willĒ event occurs all the time. What do you think will happen to her estate? Check all that apply.
7.1. Everything is left to you because she liked you the best;
7.2. The beneficiary listed on her pension will get everything.
7.3. Government will decide who gets what.
7.4. All the close relatives will draw straws to divvy up the assets.
7.5. US Internal Revenue may get involved because she had a United States passport.
8. Food taste and cost versus protein value. You consider buying the following, you think healthy items after an over abundance at Cup Match. To keep it simple, they all cost $5. Which food(s) have the highest protein content per serving of 100 grams compared to cost?
Hint: research this and all food items for better nutrition on the best website ever for food quality comparisons and diet encouragement. SelfNutrition Data Know What You Eat http://nutritiondata.self.com/
8.1. 85 per cent lean hamburger
8.2. Cheddar cheese
8.3. Wise potato chips (my absolute favourite)
8.4. Beer or wine
8.5. Baked beans in a can
8.6. Ice cream, another family favourite ó remember Freeza Fresh?
Readers, thatís it for this week. May the weather be perfect. May you have the best time ever, and even if you donít at least youíre on holiday!
Martha Harris Myron CPA CFP JSM: Masters of Law ó international tax and financial services. Pondstraddler Life, financial perspectives for Bermuda islanders with multinational families and international connections on the Great Atlantic Pond. Contact: firstname.lastname@example.org
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