Quiz: Preparing for the Future

What is one key benefit of early and thoughtful educational and career planning for a child? *

Provides instant financial gain

Guarantees immediate academic success

Helps set clear goals and provides direction

Avoids all future career challenges

Which of the following is a recommended strategy for saving for college? *

Invest in high-risk stocks only

Utilize a 529 College Savings Plan

Save only in cash under a mattress

Spend all available funds on current expenses

What is a Coverdell Education Savings Account (ESA) used for? *

Only for non-educational expenses

To save for retirement

To cover educational expenses, including K-12

For purchasing real estate

How can parents encourage lifelong learning in their children? *

By encouraging exploration and providing access to books and courses

By discouraging extracurricular activities

By restricting access to educational materials

By only focusing on school homework

What is a significant component of estate planning? *

Avoiding the creation of a will

Ignoring tax implications

Only planning for digital assets

Creating a legally binding will

What role does a power of attorney play in estate planning? *

It manages the estate’s investments

It makes financial or legal decisions on your behalf if you are incapacitated

It distributes physical assets after death

It handles your social media accounts

Why is it important to teach children about financial literacy? *

To ensure they can avoid all future debt

To prepare them to manage money responsibly and make informed decisions

To focus only on their academic success

To guarantee they will always earn a high salary

Which of the following is a recommended way to involve your child in saving for their future? *

Keeping all savings information confidential

Handling all financial decisions without their input

Avoiding discussions about money with them

Teaching them about budgeting and allowing them to contribute to a savings account

What should you do if you have significant assets and want to avoid probate? *

Only create a simple will

Establish a trust

Do nothing and assume the assets will be divided as per law

Only focus on tax planning

How can you teach children about the importance of saving? *

By providing them with an allowance and encouraging them to set savings goals

By discouraging them from saving for future goals

By only discussing the costs of borrowing money

By focusing solely on spending money