Where do you stand financially? Get a score on this quiz — and our advice.

It’s okay if you’re still worried about a recession.

The drumbeat of economic news can be perplexing. Mortgage rates continue to swing up and down. Credit card debt has gotten more expensive. Although inflation is easing, the Federal Reserve has still indicated more rate hikes may be necessary this year to slow down the economy. And the stock market is seesawing in the wake of concerns about the banking sector, sparked by the closing of Silicon Valley Bank and Signature Bank.

I’ve teamed up with my colleagues to build a quiz to help you determine how current economic events could impact your finances. There’s no right or wrong answer. The questions are meant to help you to gauge where you stand financially. Your score — and our financial advice — could help you prepare for what’s coming if the economy worsens.

Question 1 of 10

Do you have enough money coming in to cover necessities?

Yes, my monthly salary or retirement income covers my housing, food, utilities and the cost of commuting

No, I often have to dip into my savings or use credit to help pay for housing, food, utilities or the cost of commuting

Question 2 of 10

Do you have monthly student loan debt that was difficult to pay before the pandemic?

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Question 3 of 10

Do you have emergency savings?

Yes, I have enough savings to pay my basic expenses for at least one month if I lost my job

Yes, I have more than three months of expenses saved

No, I don’t have any savings. I’m living paycheck to paycheck

Many American adults can’t cover a $400 emergency, such as a car repair or a modest medical bill, without borrowing from a friend or family member, or using a credit card and paying it off over time.

The Secure 2.0 retirement law passed in 2022 contains two provisions related to emergency savings. In 2024, retirement plans can allow employees two ways to save. Under one provision, they would be able to withdraw up to $1,000 for an emergency expense. This withdrawal is not subject to the usual 10 percent early withdrawal penalty for people under 59½. There’s also a provision that, if implemented by an employer, would permit employees to contribute to a Roth IRA that is designated as an emergency fund.

Read more: Michelle Singletary’s money milestones for every age

Question 4 of 10

Are you contributing to a retirement account?

Question 5 of 10

Do you have revolving credit card debt?

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Question 6 of 10

Do you have to pay for gas for the drive to work?

Yes, but my job isn’t far from my home

Yes, my daily commute is about 50 miles round trip

Yes, my daily commute is more than 100 miles round trip

I do not have to pay for gas or drive to work

Question 7 of 10

Are you looking to buy a home within six months to a year?

Question 8 of 10

Do you have a fixed-rate mortgage?

Not applicable because I rent or own my home outright.

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Question 9 of 10

Has your rent increased significantly?

Not applicable because I’m a homeowner

Question 10 of 10

Do you need to buy a new or used car soon?

You need to answer every question to see your result. You’re missing questions 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10.

About this story

Design and development by Reuben Fischer-Baum. Illustrations by Emily Wright. Editing by Suzanne Goldenberg and Karly Domb Sadof. Design editing by Virginia Singarayar. Copy editing by Sophie Yarborough and Jamie Zega.

Source link: https://www.washingtonpost.com/business/interactive/2022/how-the-economy-affects-me/

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