Financial Autonomy

Episode 51 – Can you pass the financial literacy test Want to minimise the chance of living off nothing but a meagre age pension in later life?   There’s a great proverb that I heard many years ago and have never forgotten “a fool and his money are easily separated”. So how do you ensure you’re not the fool? The solution is to have at least a basic understanding of the financial world. We call this Financial Literacy. That doesn’t mean you need to become an expert – you can hire people for that. But you need to know enough to be able to sniff out a bad deal, and to avoid those big missteps. You need to be able to understand the risks you are taking, and gauge whether the likely return adequately compensates for that risk. So, today’s post takes on a question and answer format. Let’s see how you fare when it comes to financial literacy.     Question 1 You log onto your internet banking and your credit card shows an available balance of $7,400 and an account balance of $2,600. Should you make any repayments on