By Deanna Parmenter

I’ve been writing this blog for several months now and I enjoy it very much.  But now it’s time to hear from you.  This week’s blog is all about you.  More specifically, about how much you know about personal finance. 

Listed below are 12 questions about very common situations that we all run into.  But many of us may not know the answers or even how to find out more information.  And we certainly don’t learn about it in school.  So here you are.  My hope is that this little quiz will get you started on a path to better financial decision making and stability.

Answers to these questions and suggestions for how to find additional information will appear in the next blog. 

Please send me an email at deannaparmenter@live.com with your answers. The deadline is Tuesday, April 24th, 2012.  As an incentive to respond, the person with the most correct answers will receive a $25 gift certificate to a local restaurant; and each time you add a comment to the blog asking a question or to share a personal experience you will automatically be added to a drawing for a special prize.

No question is too basic and I’ll bet if you experienced an interesting situation, others did too.  We’d love to hear from you.

All questions are answered with either a “True” or “False” response.  Ready, set, here you go!

1. Knowing my credit score is not important unless I need to buy a house or car.
2. Paying the minimum amount on my credit card each month will help my credit because I will have a longer history of making payments.
3. I should always take advantage of balance transfer offers if the interest rate is lower than what I am currently paying.
4. If I settle a debt for less than the full amount, I don’t have to report it to the IRS.
5. The most important thing when buying a car is figuring out how much monthly payment can I afford.
6. Having an occasional bounced check fee is no big deal because the bank covers my check.
7. Budgeting isn’t that important because I spend money on the same things every month and I’m locked into the payments.
8. Signing up for my employer’s 401(k) will have to wait until I’m not so strapped for cash.
9. Buying an extended warranty on a large purchase like a car or appliance is always a good idea.
10. Buying CDs or other fixed income investments is safer than stocks during an uncertain market.
11. It is not necessary to plan for my retirement because I will have social security and Medicare.
12. It isn’t important to buy insurance because I am renting an apartment and don’t own a house.

Remember, the person who answers the most questions correctly will win a $25 gift certificate to a local restaurant.  And please, post a comment on the blog with your thoughts and questions.