Routing for UAS596
maintro
In this survey you will be asked to answer some questions about financial knowledge, financial decisions, and preparedness for financial shocks and retirement.
cu001 (how satisfied current financial situation)
Overall, how satisfied are you with your current financial situation?
1 Extremely satisfied
2 Very satisfied
3 Somewhat satisfied
4 Not very satisfied
5 Not at all satisfied
98 Don't know
2 Very satisfied
3 Somewhat satisfied
4 Not very satisfied
5 Not at all satisfied
98 Don't know
cu002 (more or less satisfied financial situation compared to 2023)
Compared to Spring a year ago (2023), are you more satisfied or less satisfied with your current financial situation?
1 Much more satisfied
2 More satisfied
3 About the same
4 Less satisfied
5 Much less satisfied
98 Don't know
2 More satisfied
3 About the same
4 Less satisfied
5 Much less satisfied
98 Don't know
cu003 (confident cope with no labor earnings for next 3 months)
How confident are you that you could cope if you did not have any labor earnings for the next 3 months?
1 I am certain I could cope
2 I could probably cope
3 I probably could not cope
4 I am certain I could not cope
98 Don't know
2 I could probably cope
3 I probably could not cope
4 I am certain I could not cope
98 Don't know
cu004 (confident come up with $ unexpected need)
How confident are you that you could come up with $2,000 if an unexpected need arose within the next month?
1 I am certain I could come up with the full $2,000
2 I could probably come up with $2,000
3 I could probably not come up with $2,000
4 I am certain I could not come up with $2,000
98 Don't know
2 I could probably come up with $2,000
3 I could probably not come up with $2,000
4 I am certain I could not come up with $2,000
98 Don't know
cu005 (how difficult to cover expenses and bills currently )
How difficult is it for you to cover your expenses and pay all your bills right now?
1 Extremely difficult
2 Very difficult
3 Somewhat difficult
4 Not very difficult
5 Not at all difficult
98 Don't know
2 Very difficult
3 Somewhat difficult
4 Not very difficult
5 Not at all difficult
98 Don't know
cu006 (satisfaction with managing finances)
How satisfied are you with the way you handle your day-to-day finances?
1 Extremely satisfied
2 Very satisfied
3 Somewhat satisfied
4 Not very satisfied
5 Not at all satisfied
98 Don't know
2 Very satisfied
3 Somewhat satisfied
4 Not very satisfied
5 Not at all satisfied
98 Don't know
cu007 (interest versus inflation rate)
In the past six months, did you compare the interest rate you earned on your savings with the inflation rate?
1 No
2 Yes, but only sometimes
3 Yes, I follow it closely
4 I have no savings
98 Don't know
2 Yes, but only sometimes
3 Yes, I follow it closely
4 I have no savings
98 Don't know
re_intro
The following questions ask about your retirement plans.
re003 (ever tried to figure out how much needed for retirement)
Have you ever tried to figure out how much you need to save for retirement?
1 Yes
2 No
98 Don't know
2 No
98 Don't know
re001 (currently retired)
Are your currently retired?
1 Yes
2 No
98 Don't know
2 No
98 Don't know
cn_intro
Please answer these short questions related to personal finance concepts.
cn001 (overall financial knowledge)
On a scale from 1 to 7, how would you assess your overall financial knowledge?
1 1 Very low
2 2
3 3
4 4
5 5
6 6
7 7 Very high
98 Don't know
2 2
3 3
4 4
5 5
6 6
7 7 Very high
98 Don't know
Group of questions presented on the same screen
cn002_scale (assessment of parents' understanding of financial matters--scale)
How would you assess your parents’ understanding of financial matters during their prime working years, i.e., when they were 40-60 years old?
Please refer to the parent that is (or was) mostly responsible for major financial decisions (on a 7-point scale: 1 means very low and 7 means very high).
Please refer to the parent that is (or was) mostly responsible for major financial decisions (on a 7-point scale: 1 means very low and 7 means very high).
1 1 Very low
2 2
3 3
4 4
5 5
6 6
7 7 Very high
2 2
3 3
4 4
5 5
6 6
7 7 Very high
cn002_DK (assessment of parents' understanding of financial matters--DK/NA)
98 Don't know
99 Not applicable, I did not have parents while growing up
99 Not applicable, I did not have parents while growing up
emptymsg
DEC001script
End of group of questions
if cn002_DK = 98 or cn002_DK = 99 then
cn002 := cn002_DK
Else
cn002 := cn002_scale
End of if
cn003 (older sibling)
Do you or did you have older siblings when you were growing up?
1 Yes
2 No
98 Don't know
2 No
98 Don't know
if cn003 = 1 then
cn004 (age difference)
How much older was your oldest sibling than you?
RANGE 0..75cn005 (oldest sibling financial situation)
As an adult, would you say that your oldest sibling was in worse, better, or about the same financial condition as you?
1 Worse
2 Better
3 About the same
98 Don't know
2 Better
3 About the same
98 Don't know
End of if
cn006 (ever participated in financial education class)
Did you ever participate in a financial education class or program offered in high school or college, in the workplace, or by an organization or institution where you lived or worked?
1 Yes
2 No, was offered one but I did not participate
3 No, I was never offered one
98 Don't know
2 No, was offered one but I did not participate
3 No, I was never offered one
98 Don't know
cn007 ($100 after 5 years)
Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?
1 More than $102
2 Exactly $102
3 Less than $102
98 Don't know
2 Exactly $102
3 Less than $102
98 Don't know
cn008 (loan amount owed)
Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year compounded annually. If you didn’t pay anything off, at this interest rate, how many years would it take for the amount you owe to double?
1 Less than 2 years
2 At least 2 years but less than 5 years
3 At least 5 years but less than 10 years
4 At least 10 years
98 Don't know
2 At least 2 years but less than 5 years
3 At least 5 years but less than 10 years
4 At least 10 years
98 Don't know
cn009 (single stock safer return than mutual fund)
Buying a single company's stock usually provides a safer return than a stock mutual fund.
1 True
2 False
98 Don't know
2 False
98 Don't know
cn010 (savings account amount after interest)
Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?
1 More than today
2 Exactly the same
3 Less than today
98 Don't know
2 Exactly the same
3 Less than today
98 Don't know
cn011 (chance of rain)
Which of the following indicates the highest chance that rain will occur?
1 There is a one-in-three chance that it will rain
2 It will rain with a 3% likelihood
3 In 30 out of 1,000 scenarios it will rain
98 Don't know
2 It will rain with a 3% likelihood
3 In 30 out of 1,000 scenarios it will rain
98 Don't know
sc_intro
Next, we turn to some scenario-based and knowledge questions.
if bh_randomizer = empty then
bh_randomizer := getUAS378Preload("bh_randomizer")
if bh_randomizer = empty then
bh_randomizer := mt_rand(1,4)
bh_randomizer_flag := 2
Else
bh_randomizer_flag := 1
End of if
End of if
if bh_randomizer = 1 then
sc001 (jack or jill more money in savings account)
Consider the following scenario: Jack and Jill are twins. At age 20, Jack started contributing $20 a month to a savings account. After 20 years, when he was age 40, he stopped adding to his savings but left the money in the account. Jill didn’t start to save until she was 40. Then, she saved $20 a month until she retired 20 years later at age 60. Suppose both Jack and Jill earned a 6% return each year on their savings. When they both retired at age 60, who had more money? Select one choice.
1 Jack
2 Jill
3 They had the same amount
98 Don't know
2 Jill
3 They had the same amount
98 Don't know
sc004 (how many times investment amount doubled)
Mary put away $1,000 at age 25 after finishing her Master’s degree and she promised not to touch it for many years. She invested it in a stock mutual fund which had an annual return of 7%. She is now 55 years old. How many times did her initial amount double, since she invested at age 25? Select one choice.
1 2 times
2 3 times
3 10 times
98 Don't know
2 3 times
3 10 times
98 Don't know
sc002 (which investment strategy recommend)
Suppose you are a member of a stock investment club. This year, the club has about $200,000 to invest in stocks and the members prefer not to take a lot of risk. Which of the following strategies would you recommend to your fellow members? Select one choice.
1 Put all of the money in one stock
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
sc003 (job offer choice)
Rita must choose between two job offers. She wants to select the job paying a salary that will provide her with a higher standard of living for the next few years. Job A offers a 3% raise every year, while Job B won’t give her a raise for the next few years. If Rita chooses Job A, she will live in City A. If Rita chooses Job B, she will live in City B. Rita finds that the price of goods and services today are about the same in both areas. Prices are expected to rise, however, by 4% in City A every year, and stay the same in City B.
Based on her concerns about her standard of living, what should Rita do? Select one:
| Job | Raise every year | City | Expected increase in prices |
| A | 3% | A | 4% |
| B | Stay the same | B | Stay the same |
1 Take Job A
2 Take Job B
3 Take either one: she will be able to afford the same future standard of living in both places
98 Don't know
2 Take Job B
3 Take either one: she will be able to afford the same future standard of living in both places
98 Don't know
sc_intro2
Please choose whether the following statements are true or false.
sc007 (Compound)
Compound interest refers to interest earned on the initial amount invested plus accumulated interest.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc008 (knowledge 2 group 1, Rule of 72)
The Rule of 72 is a simple way to estimate how long it takes for your money to double: Simply divide 72 by the interest rate you can earn on the money.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc009 (Portfolio)
It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc010 (Inflation)
If the inflation rate was 4% last year, this means that overall prices rose by 4% last year.
1 True
2 False
3 Don't know
2 False
3 Don't know
elseif bh_randomizer = 2 then
sc002 (which investment strategy recommend)
Suppose you are a member of a stock investment club. This year, the club has about $200,000 to invest in stocks and the members prefer not to take a lot of risk. Which of the following strategies would you recommend to your fellow members? Select one choice.
1 Put all of the money in one stock
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
sc006 (how invest bonus)
Imagine that you've been with NewTech Inc. for the past ten years and just got a $5,000 bonus, since the company is doing so well. You’re thinking about investing it in the stock market. You never invested before but want to use this bonus to start saving for retirement. Which should you choose? Select one choice.
1 Invest in NewTech Inc. as you love working with the firm and see first-hand that the business is doing very well
2 Invest in a technology index fund that tracks the performance of 340 technology stocks
3 Invest in a diverse fund that holds shares of companies across the energy, financial services, health care, leisure, and technology sector
98 Don't know
2 Invest in a technology index fund that tracks the performance of 340 technology stocks
3 Invest in a diverse fund that holds shares of companies across the energy, financial services, health care, leisure, and technology sector
98 Don't know
sc001 (jack or jill more money in savings account)
Consider the following scenario: Jack and Jill are twins. At age 20, Jack started contributing $20 a month to a savings account. After 20 years, when he was age 40, he stopped adding to his savings but left the money in the account. Jill didn’t start to save until she was 40. Then, she saved $20 a month until she retired 20 years later at age 60. Suppose both Jack and Jill earned a 6% return each year on their savings. When they both retired at age 60, who had more money? Select one choice.
1 Jack
2 Jill
3 They had the same amount
98 Don't know
2 Jill
3 They had the same amount
98 Don't know
sc003 (job offer choice)
Rita must choose between two job offers. She wants to select the job paying a salary that will provide her with a higher standard of living for the next few years. Job A offers a 3% raise every year, while Job B won’t give her a raise for the next few years. If Rita chooses Job A, she will live in City A. If Rita chooses Job B, she will live in City B. Rita finds that the price of goods and services today are about the same in both areas. Prices are expected to rise, however, by 4% in City A every year, and stay the same in City B.
Based on her concerns about her standard of living, what should Rita do? Select one:
| Job | Raise every year | City | Expected increase in prices |
| A | 3% | A | 4% |
| B | Stay the same | B | Stay the same |
1 Take Job A
2 Take Job B
3 Take either one: she will be able to afford the same future standard of living in both places
98 Don't know
2 Take Job B
3 Take either one: she will be able to afford the same future standard of living in both places
98 Don't know
sc_intro2
Please choose whether the following statements are true or false.
sc009 (Portfolio)
It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc011 (Risk Return)
An investment with a higher expected return is likely to be lower risk.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc007 (Compound)
Compound interest refers to interest earned on the initial amount invested plus accumulated interest.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc010 (Inflation)
If the inflation rate was 4% last year, this means that overall prices rose by 4% last year.
1 True
2 False
3 Don't know
2 False
3 Don't know
elseif bh_randomizer = 3 then
sc003 (job offer choice)
Rita must choose between two job offers. She wants to select the job paying a salary that will provide her with a higher standard of living for the next few years. Job A offers a 3% raise every year, while Job B won’t give her a raise for the next few years. If Rita chooses Job A, she will live in City A. If Rita chooses Job B, she will live in City B. Rita finds that the price of goods and services today are about the same in both areas. Prices are expected to rise, however, by 4% in City A every year, and stay the same in City B.
Based on her concerns about her standard of living, what should Rita do? Select one:
| Job | Raise every year | City | Expected increase in prices |
| A | 3% | A | 4% |
| B | Stay the same | B | Stay the same |
1 Take Job A
2 Take Job B
3 Take either one: she will be able to afford the same future standard of living in both places
98 Don't know
2 Take Job B
3 Take either one: she will be able to afford the same future standard of living in both places
98 Don't know
sc005 (friend wrong or right investment advice)
Adele is 50 years old and is discussing three investment opportunities with a friend. She has already put aside a good sum of money and wants to invest it for the next 10 years, after that she will take early retirement and move to Florida. She wants to play it safe, so she could invest in a) a saving account that pays 1% per year, b) a T-bill that pays 1.5% per year, or c) a certificate of deposit that pays 2% per year. The current inflation rate is 2.5% and expected to stay at that level. Her friend tells her that if she invests this way, she will not be able to buy the same things she can afford today with the money she will have in 10 years. Which of the following is correct?
1 Her friend is right
2 Her friend is wrong
3 We cannot tell with this information
98 Don't know
2 Her friend is wrong
3 We cannot tell with this information
98 Don't know
sc001 (jack or jill more money in savings account)
Consider the following scenario: Jack and Jill are twins. At age 20, Jack started contributing $20 a month to a savings account. After 20 years, when he was age 40, he stopped adding to his savings but left the money in the account. Jill didn’t start to save until she was 40. Then, she saved $20 a month until she retired 20 years later at age 60. Suppose both Jack and Jill earned a 6% return each year on their savings. When they both retired at age 60, who had more money? Select one choice.
1 Jack
2 Jill
3 They had the same amount
98 Don't know
2 Jill
3 They had the same amount
98 Don't know
sc002 (which investment strategy recommend)
Suppose you are a member of a stock investment club. This year, the club has about $200,000 to invest in stocks and the members prefer not to take a lot of risk. Which of the following strategies would you recommend to your fellow members? Select one choice.
1 Put all of the money in one stock
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
sc_intro2
Please choose whether the following statements are true or false.
sc010 (Inflation)
If the inflation rate was 4% last year, this means that overall prices rose by 4% last year.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc012 (Cost of living)
High inflation means that the cost of living is falling rapidly.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc007 (Compound)
Compound interest refers to interest earned on the initial amount invested plus accumulated interest.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc009 (Portfolio)
It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares.
1 True
2 False
3 Don't know
2 False
3 Don't know
elseif bh_randomizer = 4 then
sc001 (jack or jill more money in savings account)
Consider the following scenario: Jack and Jill are twins. At age 20, Jack started contributing $20 a month to a savings account. After 20 years, when he was age 40, he stopped adding to his savings but left the money in the account. Jill didn’t start to save until she was 40. Then, she saved $20 a month until she retired 20 years later at age 60. Suppose both Jack and Jill earned a 6% return each year on their savings. When they both retired at age 60, who had more money? Select one choice.
1 Jack
2 Jill
3 They had the same amount
98 Don't know
2 Jill
3 They had the same amount
98 Don't know
sc004 (how many times investment amount doubled)
Mary put away $1,000 at age 25 after finishing her Master’s degree and she promised not to touch it for many years. She invested it in a stock mutual fund which had an annual return of 7%. She is now 55 years old. How many times did her initial amount double, since she invested at age 25? Select one choice.
1 2 times
2 3 times
3 10 times
98 Don't know
2 3 times
3 10 times
98 Don't know
sc002 (which investment strategy recommend)
Suppose you are a member of a stock investment club. This year, the club has about $200,000 to invest in stocks and the members prefer not to take a lot of risk. Which of the following strategies would you recommend to your fellow members? Select one choice.
1 Put all of the money in one stock
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
sc006 (how invest bonus)
Imagine that you've been with NewTech Inc. for the past ten years and just got a $5,000 bonus, since the company is doing so well. You’re thinking about investing it in the stock market. You never invested before but want to use this bonus to start saving for retirement. Which should you choose? Select one choice.
1 Invest in NewTech Inc. as you love working with the firm and see first-hand that the business is doing very well
2 Invest in a technology index fund that tracks the performance of 340 technology stocks
3 Invest in a diverse fund that holds shares of companies across the energy, financial services, health care, leisure, and technology sector
98 Don't know
2 Invest in a technology index fund that tracks the performance of 340 technology stocks
3 Invest in a diverse fund that holds shares of companies across the energy, financial services, health care, leisure, and technology sector
98 Don't know
sc003 (job offer choice)
Rita must choose between two job offers. She wants to select the job paying a salary that will provide her with a higher standard of living for the next few years. Job A offers a 3% raise every year, while Job B won’t give her a raise for the next few years. If Rita chooses Job A, she will live in City A. If Rita chooses Job B, she will live in City B. Rita finds that the price of goods and services today are about the same in both areas. Prices are expected to rise, however, by 4% in City A every year, and stay the same in City B.
Based on her concerns about her standard of living, what should Rita do? Select one:
| Job | Raise every year | City | Expected increase in prices |
| A | 3% | A | 4% |
| B | Stay the same | B | Stay the same |
1 Take Job A
2 Take Job B
3 Take either one: she will be able to afford the same future standard of living in both places
98 Don't know
2 Take Job B
3 Take either one: she will be able to afford the same future standard of living in both places
98 Don't know
sc005 (friend wrong or right investment advice)
Adele is 50 years old and is discussing three investment opportunities with a friend. She has already put aside a good sum of money and wants to invest it for the next 10 years, after that she will take early retirement and move to Florida. She wants to play it safe, so she could invest in a) a saving account that pays 1% per year, b) a T-bill that pays 1.5% per year, or c) a certificate of deposit that pays 2% per year. The current inflation rate is 2.5% and expected to stay at that level. Her friend tells her that if she invests this way, she will not be able to buy the same things she can afford today with the money she will have in 10 years. Which of the following is correct?
1 Her friend is right
2 Her friend is wrong
3 We cannot tell with this information
98 Don't know
2 Her friend is wrong
3 We cannot tell with this information
98 Don't know
sc_intro2
Please choose whether the following statements are true or false.
sc007 (Compound)
Compound interest refers to interest earned on the initial amount invested plus accumulated interest.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc008 (knowledge 2 group 1, Rule of 72)
The Rule of 72 is a simple way to estimate how long it takes for your money to double: Simply divide 72 by the interest rate you can earn on the money.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc009 (Portfolio)
It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc011 (Risk Return)
An investment with a higher expected return is likely to be lower risk.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc010 (Inflation)
If the inflation rate was 4% last year, this means that overall prices rose by 4% last year.
1 True
2 False
3 Don't know
2 False
3 Don't know
sc012 (Cost of living)
High inflation means that the cost of living is falling rapidly.
1 True
2 False
3 Don't know
2 False
3 Don't know
End of if
de_intro
For the next questions, think about all of your household’s current debts, including mortgages, bank loans, student loans, money owed to people, medical debt, past-due bills, and credit card balances that are carried from prior months.
de001 (how manageale current household debt)
As of today, which of the following statements describes how manageable your household debt is?
1 Have a manageable amount of debt
2 Have a bit more debt than is manageable
3 Have much more debt than is manageable
4 Have no debt
98 Don't know
2 Have a bit more debt than is manageable
3 Have much more debt than is manageable
4 Have no debt
98 Don't know
if de001 = response and de001 != 4 then
de002 (debt delayed or prevent medical treatment)
Has this debt delayed or prevented you from receiving medical treatment (including filling prescriptions)?
1 Yes
2 No
98 Don't know
2 No
98 Don't know
End of if
sp_intro
The next set of questions are about your spending and your experience with financial decision making.
sp001 (how often keep track actual spending)
How often do you keep track of your actual spending? Would you say:
1 Always
2 Mostly
3 Rarely
4 Never
98 Don't know
2 Mostly
3 Rarely
4 Never
98 Don't know
sp002 (household normally plans ahead financially.)
How strongly do you agree or disagree with the following statement? "My household normally plans ahead financially."
1 Agree completely
2 Agree somewhat
3 Neither agree nor disagree
4 Disagree somewhat
5 Disagree completely
98 Don't know
2 Agree somewhat
3 Neither agree nor disagree
4 Disagree somewhat
5 Disagree completely
98 Don't know
sp003 (concerned that money won't last for life)
How strongly do you agree or disagree with the following statement? "I am concerned that the money I have, or will have access to, won't last for the rest of my life."
1 Agree completely
2 Agree somewhat
3 Neither agree nor disagree
4 Disagree somewhat
5 Disagree completely
98 Don't know
2 Agree somewhat
3 Neither agree nor disagree
4 Disagree somewhat
5 Disagree completely
98 Don't know
sp004 (thinking finances makes anxious)
How strongly do you agree or disagree with the following statement? "Thinking about my personal finances can make me feel anxious."
1 Agree completely
2 Agree somewhat
3 Neither agree nor disagree
4 Disagree somewhat
5 Disagree completely
98 Don't know
2 Agree somewhat
3 Neither agree nor disagree
4 Disagree somewhat
5 Disagree completely
98 Don't know
sp005 (how many hours spent per week thinking about finances)
How much time do you currently spend thinking about and dealing with issues and problems related to your personal finances? Please report approximate hours per week.
RANGE 0..168if bh_randomizer = 1 then
int_intro
Next we will ask you to read a short story. Carefully read the story and once you are done, you will be asked to answer a few questions.
story1_part1
Dave and Michelle, two 25-year olds, recently got married. They received $5,000 in cash as wedding presents and needed to decide what to do with the money. The answer wasn't immediately clear.
Looking over their finances didn't take long because they didn't have much money, especially since Michelle’s job at the time was only an internship. The two of them didn't generally think of themselves as planners and, at first, it seemed pointless to even consider investing for the long term. Dave suggested not investing right away and instead waiting until they had better jobs and made more money.
But Michelle told Dave about the Rule of 72. This rule approximates how many years it takes for an investment to double at a given annual rate of return. The formula is simple, as she explained: "Just divide 72 by the annual return and you’ll get the number of years it will take for your money to double."
[IWER:
72 / annual rate of return = years for your money to double
It will take...
72 years for your money to double if you earn a return of 1% (72 / 1 = 72)
24 years for your money to double if you earn a return of 3% (72 / 3 = 24)
12 years for your money to double if you earn a return of 6% (72 / 6 = 12)
7.2 years for your money to double if you earn a return of 10% (72 / 10 = 7.2) ]
She noted that, with a 7% return, it would take about 10 years for their investment to double. At first, Dave wondered whether they could earn such a high return: 7% is a lot! But Michelle pointed out that they would be investing for the long term, and a diversified portfolio of stocks could yield returns in that range (even if it could go up or down).
Looking over their finances didn't take long because they didn't have much money, especially since Michelle’s job at the time was only an internship. The two of them didn't generally think of themselves as planners and, at first, it seemed pointless to even consider investing for the long term. Dave suggested not investing right away and instead waiting until they had better jobs and made more money.
But Michelle told Dave about the Rule of 72. This rule approximates how many years it takes for an investment to double at a given annual rate of return. The formula is simple, as she explained: "Just divide 72 by the annual return and you’ll get the number of years it will take for your money to double."
[IWER:
Rule of 72
It will take...
72 years for your money to double if you earn a return of 1% (72 / 1 = 72)
24 years for your money to double if you earn a return of 3% (72 / 3 = 24)
12 years for your money to double if you earn a return of 6% (72 / 6 = 12)
7.2 years for your money to double if you earn a return of 10% (72 / 10 = 7.2) ]
She noted that, with a 7% return, it would take about 10 years for their investment to double. At first, Dave wondered whether they could earn such a high return: 7% is a lot! But Michelle pointed out that they would be investing for the long term, and a diversified portfolio of stocks could yield returns in that range (even if it could go up or down).
story1_part2
This simple rule helped Michelle figure out that at a 7% annual return, the original $5,000 would grow to a whopping $160,000 by the time she and Dave turned age 75. When Michelle first pointed this out to Dave, he thought something had to be wrong with Michelle’s calculation. But, as she explained, the money grows because returns are compounded over time. In other words, all of the money including the earned return, gets reinvested every year, so that over the long term, there’s some serious build–up!
[IWER: Let’s do the math!
If Dave and Michelle earned a 7% annual return, their investment would approximately double every 10 years.
If they invested $5,000 when they were 25 years old, then:
]
If they invested $5,000 when they were 25 years old, then: by age 35, it would double to about: $10,000 which would double again by age 45 to about: $20,000 which would double again by age 55 to about: $40,000 which would double again by age 65 to about: $80,000 which would double again by age 75 to about: $160,000) If Michelle and Dave waited until they were 55 years old to invest the $5,000 and earned the same 7% return, they would end up with about $20,000 by the time they were 75. And while $20,000 would be nice, the $160,000 they’d have if they invested starting right away would be even nicer!
Dave and Michelle decided to invest their $5,000 right away, giving it more time to grow. When their friends and family gave them $5,000, they never imagined it could turn into six figures. The young couple now understands that knowing more about compound interest and the Rule of 72 will be important for their future. Investing the money right away was the best wedding gift they could have given themselves!
[IWER: Let’s do the math!
If Dave and Michelle earned a 7% annual return, their investment would approximately double every 10 years.
If they invested $5,000 when they were 25 years old, then:
| by age 35, it would double to about: | $10,000 |
| which would double again by age 45 to about: | $20,000 |
| which would double again by age 55 to about: | $40,000 |
| which would double again by age 65 to about: | $80,000 |
| which would double again by age 75 to about: | $160,000 |
Dave and Michelle decided to invest their $5,000 right away, giving it more time to grow. When their friends and family gave them $5,000, they never imagined it could turn into six figures. The young couple now understands that knowing more about compound interest and the Rule of 72 will be important for their future. Investing the money right away was the best wedding gift they could have given themselves!
int001_noback (who earns more money)
Anna and Jessica are twins. At age 20, Jessica started contributing $20 a month to a savings account. After 20 years, when she was age 40, she stopped adding to her savings but she left the money in the account. Anna didn’t start to save until she was 40. Then, she saved $20 a month until she retired 20 years later at age 60. Suppose both Anna and Jessica earned a 6% return each year on their savings. When they both retired at age 60, who had more money? Select one choice.
1 Anna
2 Jessica
3 They had the same amount
98 Don't know
2 Jessica
3 They had the same amount
98 Don't know
int001 := int001_noback
int004 (how many times amount doubled)
Jason inherited a $1,000 at age 35 from his grandparents and promised to save it for his retirement. He invested it in a stock mutual fund with an annual return of 7%. He is now 65 years old. How many times did his initial amount double since he invested at age 35? Select one choice.
1 2 times
2 3 times
3 10 times
98 Don't know
2 3 times
3 10 times
98 Don't know
int002 (investment stocks advice)
Suppose you are advising an old friend who wants to invest $50,000 in stocks, but he prefers not to take a lot of risk. Which of the following strategies would you recommend to your friend? Select one choice.
1 Put all of the money in one stock
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
int003 (which job choose)
Jacob has two job offers to choose from and he wants to select the job paying a salary that will provide him with a higher standard of living for the next few years. Job A offers a 3% raise every year, while Job B will not provide a raise for the next few years. If Jacob chooses Job A, he will live in City A. If Jacob chooses Job B, he will live in City B. Jacob finds that the price of goods and services today are about the same in both areas. Prices are expected to rise, however, by 4% in City A every year, and stay the same in City B.
Based on his concerns about his standard of living, what should Jacob do? Select one:
| Job | Raise every year | City | Expected increase in prices |
| A | 3% | A | 4% |
| B | Stay the same | B | Stay the same |
1 Take Job A
2 Take Job B
3 Take either one: he will be able to afford the same future standard of living in both places
98 Don't know
2 Take Job B
3 Take either one: he will be able to afford the same future standard of living in both places
98 Don't know
int_cn007 ($100 after 5 years post intervention)
Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?
1 More than $102
2 Exactly $102
3 Less than $102
98 Don't know
2 Exactly $102
3 Less than $102
98 Don't know
int_cn008 (loan amount owed post intervention)
Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year compounded annually. If you didn’t pay anything off, at this interest rate, how many years would it take for the amount you owe to double?
1 Less than 2 years
2 At least 2 years but less than 5 years
3 At least 5 years but less than 10 years
4 At least 10 years
98 Don't know
2 At least 2 years but less than 5 years
3 At least 5 years but less than 10 years
4 At least 10 years
98 Don't know
int_sc007 (Compound post intervention)
Compound interest refers to interest earned on the initial amount invested plus accumulated interest.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc008 (knowledge 2 group 1, Rule of 72 post intervention)
The Rule of 72 is a simple way to estimate how long it takes for your money to double: Simply divide 72 by the interest rate you can earn on the money.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc009 (Portfolio post intervention)
It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc010 (Inflation post intervention)
If the inflation rate was 4% last year, this means that overall prices rose by 4% last year.
1 True
2 False
3 Don't know
2 False
3 Don't know
elseif bh_randomizer = 2 then
int_intro
Next we will ask you to read a short story. Carefully read the story and once you are done, you will be asked to answer a few questions.
story2_part1
Kate and her husband Sam are discussing what they could do with some money they recently got from selling their car. Kate suggests that they could invest it in the stock market to get a higher return, compared to what they would get from just putting it in a bank account.
At first, Sam didn’t understand why just putting money somewhere safe isn’t good enough. But Kate reminded him that, when they invested for the long term, they needed to take some risk. Otherwise, there’s no way to make their money grow, because the average amount of money an investment earns over the long run is related to the riskiness of the investment. Riskier investments tend to earn higher returns, while less risky investments earn lower returns. But that doesn’t necessarily mean that riskier investments are better, since riskier investments also stand a chance of losing money. In other words, there’s a trade-off between risk and return.
Kate explained to Sam that every type of investment has some degree of risk. At the same time, he wants to avoid a total wipeout and losing everything he owns all at once. For example, if he owned stock in just one company, then he’s relying on the performance of just that one company. If it went bankrupt or even just lost money, his investment would be affected, too. As Kate explained, "that’s why it’s important to invest in a mix of assets and not put all your money in one place."
At first, Sam didn’t understand why just putting money somewhere safe isn’t good enough. But Kate reminded him that, when they invested for the long term, they needed to take some risk. Otherwise, there’s no way to make their money grow, because the average amount of money an investment earns over the long run is related to the riskiness of the investment. Riskier investments tend to earn higher returns, while less risky investments earn lower returns. But that doesn’t necessarily mean that riskier investments are better, since riskier investments also stand a chance of losing money. In other words, there’s a trade-off between risk and return.
Kate explained to Sam that every type of investment has some degree of risk. At the same time, he wants to avoid a total wipeout and losing everything he owns all at once. For example, if he owned stock in just one company, then he’s relying on the performance of just that one company. If it went bankrupt or even just lost money, his investment would be affected, too. As Kate explained, "that’s why it’s important to invest in a mix of assets and not put all your money in one place."
story2_part2
Next, Sam told Kate that he was thinking about investing in the company where he works, since the company’s growing and Sam is confident it’s doing well. Kate wonders if he’s been listening to her at all! She tells him that the whole point of putting his money in several different companies is that, if something unexpectedly bad happened to one of them, he’ll be cushioned to a certain degree. But if Sam invested only in the company where he worked and that company tanked, both his job and his investments would be in trouble. That’s where not putting all your eggs in one basket comes in: you shouldn’t have your investments and your job tied to the same company, and you shouldn’t have all of your money invested in one company. Instead, spread it around.
Kate asked Sam to think about the following scenario: What if he invested in several different companies that all manufactured umbrellas, and all of a sudden, the value of umbrellas crashed? That might sound unlikely, but think about when the tech bubble burst or when the real estate market collapsed. Therefore, it’s smart to invest in many different kinds of companies. Basically, you want the ups and downs of each investment to be as unrelated to other investments as possible, so that if some do badly, others will offset those losses.
Sam realized that he now understood the saying "don’t put all your eggs in one basket" when it comes to investments. Learning this rule, he now sees, will be important for his financial future.
Kate asked Sam to think about the following scenario: What if he invested in several different companies that all manufactured umbrellas, and all of a sudden, the value of umbrellas crashed? That might sound unlikely, but think about when the tech bubble burst or when the real estate market collapsed. Therefore, it’s smart to invest in many different kinds of companies. Basically, you want the ups and downs of each investment to be as unrelated to other investments as possible, so that if some do badly, others will offset those losses.
Sam realized that he now understood the saying "don’t put all your eggs in one basket" when it comes to investments. Learning this rule, he now sees, will be important for his financial future.
int002_noback (investment stocks advice)
Suppose you are advising an old friend who wants to invest $50,000 in stocks, but he prefers not to take a lot of risk. Which of the following strategies would you recommend to your friend? Select one choice.
1 Put all of the money in one stock
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
int002 := int002_noback
int006 (investment advice for bonus)
Imagine your spouse just got a $5,000 bonus from AllWell Inc., the company she works for, because she helped develop a new drug that she believes will be very useful. She is thinking about investing the bonus in the stock market to help build her retirement account, but she has never invested before. Which option would you recommend to her? Select one choice.
1 Investing the bonus in AllWell Inc
2 Investing the bonus in a health care index fund that tracks the performance of 340 health care stocks
3 Investing the bonus in a diverse fund that holds shares of companies across the energy, financial services, health care, leisure, and technology sector
98 Don't know
2 Investing the bonus in a health care index fund that tracks the performance of 340 health care stocks
3 Investing the bonus in a diverse fund that holds shares of companies across the energy, financial services, health care, leisure, and technology sector
98 Don't know
int001 (who earns more money)
Anna and Jessica are twins. At age 20, Jessica started contributing $20 a month to a savings account. After 20 years, when she was age 40, she stopped adding to her savings but she left the money in the account. Anna didn’t start to save until she was 40. Then, she saved $20 a month until she retired 20 years later at age 60. Suppose both Anna and Jessica earned a 6% return each year on their savings. When they both retired at age 60, who had more money? Select one choice.
1 Anna
2 Jessica
3 They had the same amount
98 Don't know
2 Jessica
3 They had the same amount
98 Don't know
int003 (which job choose)
Jacob has two job offers to choose from and he wants to select the job paying a salary that will provide him with a higher standard of living for the next few years. Job A offers a 3% raise every year, while Job B will not provide a raise for the next few years. If Jacob chooses Job A, he will live in City A. If Jacob chooses Job B, he will live in City B. Jacob finds that the price of goods and services today are about the same in both areas. Prices are expected to rise, however, by 4% in City A every year, and stay the same in City B.
Based on his concerns about his standard of living, what should Jacob do? Select one:
| Job | Raise every year | City | Expected increase in prices |
| A | 3% | A | 4% |
| B | Stay the same | B | Stay the same |
1 Take Job A
2 Take Job B
3 Take either one: he will be able to afford the same future standard of living in both places
98 Don't know
2 Take Job B
3 Take either one: he will be able to afford the same future standard of living in both places
98 Don't know
int_cn009 (single stock safer return than mutual fund post intervention)
Buying a single company's stock usually provides a safer return than a stock mutual fund.
1 True
2 False
98 Don't know
2 False
98 Don't know
int_sc009 (Portfolio post intervention)
It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc011 (Risk Return post intervention)
An investment with a higher expected return is likely to be lower risk.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc007 (Compound post intervention)
Compound interest refers to interest earned on the initial amount invested plus accumulated interest.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc010 (Inflation post intervention)
If the inflation rate was 4% last year, this means that overall prices rose by 4% last year.
1 True
2 False
3 Don't know
2 False
3 Don't know
elseif bh_randomizer = 3 then
int_intro
Next we will ask you to read a short story. Carefully read the story and once you are done, you will be asked to answer a few questions.
story3_part1
This is the story of how a very cute plaid shirt inspired Lisa to save more for the future. Lisa and Beth were shopping together when Beth spotted the shirt and knew it would look great on Lisa. But when Lisa saw it, she had a flashback to the 1990’s, the last time plaid shirts were trendy. The new shirt cost $50 and Lisa remembered paying $30 for similar shirts back then. So the word 'inflation' popped into Lisa’s head.
Inflation describes price increases over time. Lisa realized that not only do shirts that used to cost $30 now cost $50, but many things that used to be $30 now cost more. With inflation, the same number of dollars buys less. So the price of a shirt, as well as other things like haircuts and groceries, can rise.
Imagine that inflation is 4% per year: this means that prices rise 4% every year. An item that costs $100 at the beginning of a year will then cost $104 at the end of that year. This might not seem like a big deal, until you consider that everything costs a bit more, on average. Therefore, if your paycheck doesn’t grow at the same rate, you won’t be able to buy as much as you used to at the higher prices.
Inflation describes price increases over time. Lisa realized that not only do shirts that used to cost $30 now cost $50, but many things that used to be $30 now cost more. With inflation, the same number of dollars buys less. So the price of a shirt, as well as other things like haircuts and groceries, can rise.
Imagine that inflation is 4% per year: this means that prices rise 4% every year. An item that costs $100 at the beginning of a year will then cost $104 at the end of that year. This might not seem like a big deal, until you consider that everything costs a bit more, on average. Therefore, if your paycheck doesn’t grow at the same rate, you won’t be able to buy as much as you used to at the higher prices.
story3_part2
When Lisa had her plaid shirt 'aha' moment, she realized that prices had risen, and that they're probably going to be even higher in the future. Her friend Beth understood that part, too. But Beth couldn't figure out how the same shirt could go all the way from $30 in the 1990’s to $50 now, when it feels like prices rise only a little each year.
Lisa explained that this happens because price increases build upon one another. Let’s say prices increased 4% every year for 20 years. A $100 bag of groceries will cost $104 after one year. After 10 years, it will cost $148, and the 4% just keeps adding up to more and more money, so that after 20 years your $100 bag of groceries costs $219. In other words, your $100 groceries cost more than twice as much 20 years later.
Lisa knows that, when she thinks about how much money she’ll need for the future, she must also take into account how much more things will cost. Reminded by her new shirt, she’s happy to have understood inflation, and she recognizes that knowing more about how to manage money will be important for her financial future.
Lisa explained that this happens because price increases build upon one another. Let’s say prices increased 4% every year for 20 years. A $100 bag of groceries will cost $104 after one year. After 10 years, it will cost $148, and the 4% just keeps adding up to more and more money, so that after 20 years your $100 bag of groceries costs $219. In other words, your $100 groceries cost more than twice as much 20 years later.
Lisa knows that, when she thinks about how much money she’ll need for the future, she must also take into account how much more things will cost. Reminded by her new shirt, she’s happy to have understood inflation, and she recognizes that knowing more about how to manage money will be important for her financial future.
int003_noback (which job choose)
Jacob has two job offers to choose from and he wants to select the job paying a salary that will provide him with a higher standard of living for the next few years. Job A offers a 3% raise every year, while Job B will not provide a raise for the next few years. If Jacob chooses Job A, he will live in City A. If Jacob chooses Job B, he will live in City B. Jacob finds that the price of goods and services today are about the same in both areas. Prices are expected to rise, however, by 4% in City A every year, and stay the same in City B.
Based on his concerns about his standard of living, what should Jacob do? Select one:
| Job | Raise every year | City | Expected increase in prices |
| A | 3% | A | 4% |
| B | Stay the same | B | Stay the same |
1 Take Job A
2 Take Job B
3 Take either one: he will be able to afford the same future standard of living in both places
98 Don't know
2 Take Job B
3 Take either one: he will be able to afford the same future standard of living in both places
98 Don't know
int003 := int003_noback
int005 (son correct in investment)
Suppose you are 50 years old and are discussing three investment opportunities with your adult child. You have put aside a good sum of money and want to invest it for the next 10 years, but you want to play it safe. Your three investment choices are, a) a saving account that pays 1% per year, b) a T-bill that pays 1.5% per year, or c) a certificate of deposit that pays 2%. The current inflation rate is 2.5% and expected to stay at that level. Your child tells you that if you invest in this way, you won’t be able to afford the same things in 10 years. Which of the following is correct?
1 Your child is right
2 Your child is wrong
3 We cannot tell with this information
98 Don't know
2 Your child is wrong
3 We cannot tell with this information
98 Don't know
int001 (who earns more money)
Anna and Jessica are twins. At age 20, Jessica started contributing $20 a month to a savings account. After 20 years, when she was age 40, she stopped adding to her savings but she left the money in the account. Anna didn’t start to save until she was 40. Then, she saved $20 a month until she retired 20 years later at age 60. Suppose both Anna and Jessica earned a 6% return each year on their savings. When they both retired at age 60, who had more money? Select one choice.
1 Anna
2 Jessica
3 They had the same amount
98 Don't know
2 Jessica
3 They had the same amount
98 Don't know
int002 (investment stocks advice)
Suppose you are advising an old friend who wants to invest $50,000 in stocks, but he prefers not to take a lot of risk. Which of the following strategies would you recommend to your friend? Select one choice.
1 Put all of the money in one stock
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
int_cn010 (savings account amount after interest post intervention)
Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?
1 More than today
2 Exactly the same
3 Less than today
98 Don't know
2 Exactly the same
3 Less than today
98 Don't know
int_sc010 (Inflation post intervention)
If the inflation rate was 4% last year, this means that overall prices rose by 4% last year.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc012 (Cost of living post intervention)
High inflation means that the cost of living is falling rapidly.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc007 (Compound post intervention)
Compound interest refers to interest earned on the initial amount invested plus accumulated interest.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc009 (Portfolio post intervention)
It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares.
1 True
2 False
3 Don't know
2 False
3 Don't know
elseif bh_randomizer = 4 then
int_intro2
Next, we will ask you to answer a few more scenario and knowledge questions.
int001 (who earns more money)
Anna and Jessica are twins. At age 20, Jessica started contributing $20 a month to a savings account. After 20 years, when she was age 40, she stopped adding to her savings but she left the money in the account. Anna didn’t start to save until she was 40. Then, she saved $20 a month until she retired 20 years later at age 60. Suppose both Anna and Jessica earned a 6% return each year on their savings. When they both retired at age 60, who had more money? Select one choice.
1 Anna
2 Jessica
3 They had the same amount
98 Don't know
2 Jessica
3 They had the same amount
98 Don't know
int004 (how many times amount doubled)
Jason inherited a $1,000 at age 35 from his grandparents and promised to save it for his retirement. He invested it in a stock mutual fund with an annual return of 7%. He is now 65 years old. How many times did his initial amount double since he invested at age 35? Select one choice.
1 2 times
2 3 times
3 10 times
98 Don't know
2 3 times
3 10 times
98 Don't know
int002 (investment stocks advice)
Suppose you are advising an old friend who wants to invest $50,000 in stocks, but he prefers not to take a lot of risk. Which of the following strategies would you recommend to your friend? Select one choice.
1 Put all of the money in one stock
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
2 Put all of the money in two stocks
3 Put all of the money equally divided in 100 large firms in the United States
98 Don't know
int006 (investment advice for bonus)
Imagine your spouse just got a $5,000 bonus from AllWell Inc., the company she works for, because she helped develop a new drug that she believes will be very useful. She is thinking about investing the bonus in the stock market to help build her retirement account, but she has never invested before. Which option would you recommend to her? Select one choice.
1 Investing the bonus in AllWell Inc
2 Investing the bonus in a health care index fund that tracks the performance of 340 health care stocks
3 Investing the bonus in a diverse fund that holds shares of companies across the energy, financial services, health care, leisure, and technology sector
98 Don't know
2 Investing the bonus in a health care index fund that tracks the performance of 340 health care stocks
3 Investing the bonus in a diverse fund that holds shares of companies across the energy, financial services, health care, leisure, and technology sector
98 Don't know
int003 (which job choose)
Jacob has two job offers to choose from and he wants to select the job paying a salary that will provide him with a higher standard of living for the next few years. Job A offers a 3% raise every year, while Job B will not provide a raise for the next few years. If Jacob chooses Job A, he will live in City A. If Jacob chooses Job B, he will live in City B. Jacob finds that the price of goods and services today are about the same in both areas. Prices are expected to rise, however, by 4% in City A every year, and stay the same in City B.
Based on his concerns about his standard of living, what should Jacob do? Select one:
| Job | Raise every year | City | Expected increase in prices |
| A | 3% | A | 4% |
| B | Stay the same | B | Stay the same |
1 Take Job A
2 Take Job B
3 Take either one: he will be able to afford the same future standard of living in both places
98 Don't know
2 Take Job B
3 Take either one: he will be able to afford the same future standard of living in both places
98 Don't know
int005 (son correct in investment)
Suppose you are 50 years old and are discussing three investment opportunities with your adult child. You have put aside a good sum of money and want to invest it for the next 10 years, but you want to play it safe. Your three investment choices are, a) a saving account that pays 1% per year, b) a T-bill that pays 1.5% per year, or c) a certificate of deposit that pays 2%. The current inflation rate is 2.5% and expected to stay at that level. Your child tells you that if you invest in this way, you won’t be able to afford the same things in 10 years. Which of the following is correct?
1 Your child is right
2 Your child is wrong
3 We cannot tell with this information
98 Don't know
2 Your child is wrong
3 We cannot tell with this information
98 Don't know
int_cn007 ($100 after 5 years post intervention)
Suppose you had $100 in a savings account and the interest rate was 2% per year. After 5 years, how much do you think you would have in the account if you left the money to grow?
1 More than $102
2 Exactly $102
3 Less than $102
98 Don't know
2 Exactly $102
3 Less than $102
98 Don't know
int_cn008 (loan amount owed post intervention)
Suppose you owe $1,000 on a loan and the interest rate you are charged is 20% per year compounded annually. If you didn’t pay anything off, at this interest rate, how many years would it take for the amount you owe to double?
1 Less than 2 years
2 At least 2 years but less than 5 years
3 At least 5 years but less than 10 years
4 At least 10 years
98 Don't know
2 At least 2 years but less than 5 years
3 At least 5 years but less than 10 years
4 At least 10 years
98 Don't know
int_cn009 (single stock safer return than mutual fund post intervention)
Buying a single company's stock usually provides a safer return than a stock mutual fund.
1 True
2 False
98 Don't know
2 False
98 Don't know
int_cn010 (savings account amount after interest post intervention)
Imagine that the interest rate on your savings account was 1% per year and inflation was 2% per year. After 1 year, how much would you be able to buy with the money in this account?
1 More than today
2 Exactly the same
3 Less than today
98 Don't know
2 Exactly the same
3 Less than today
98 Don't know
int_sc007 (Compound post intervention)
Compound interest refers to interest earned on the initial amount invested plus accumulated interest.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc008 (knowledge 2 group 1, Rule of 72 post intervention)
The Rule of 72 is a simple way to estimate how long it takes for your money to double: Simply divide 72 by the interest rate you can earn on the money.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc009 (Portfolio post intervention)
It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stocks and shares.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc011 (Risk Return post intervention)
An investment with a higher expected return is likely to be lower risk.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc010 (Inflation post intervention)
If the inflation rate was 4% last year, this means that overall prices rose by 4% last year.
1 True
2 False
3 Don't know
2 False
3 Don't know
int_sc012 (Cost of living post intervention)
High inflation means that the cost of living is falling rapidly.
1 True
2 False
3 Don't know
2 False
3 Don't know
End of if
CS_001 (HOW PLEASANT INTERVIEW)
Could you tell us how interesting or uninteresting you found the questions in this survey?
1 Very interesting
2 Interesting
3 Neither interesting nor uninteresting
4 Uninteresting
5 Very uninteresting
98 Don't know
2 Interesting
3 Neither interesting nor uninteresting
4 Uninteresting
5 Very uninteresting
98 Don't know
CS_003 (comments)
Do you have any other comments on the survey? Please type these in the box below. (If you have no comments, please click next to complete this survey.)
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