Financial Literacy Self-Assessment
Evaluate your financial knowledge across budgeting, asset allocation, insurance risk-transfer, and tax optimization to identify strategic improvement areas.
Tip: Complete the assessment below or download the PDF version for offline review.
Financial Literacy Assessment
Evaluate Your Core Financial Knowledge Base
Prepared by Jasvinder Singh • NovaRock Advisory (AMFI ARN-344268 | IRS PTIN P03472019)
Answer the 25 questions across the 5 core financial planning disciplines below. Upon completion, you will receive your calibrated score, an identified knowledge gap summary, and direct recommendations aligned with your level.
Assessment Modules
- Budgeting & Money Management (5 questions)
- Investing & Wealth Creation (5 questions)
- Insurance & Risk Management (5 questions)
- Tax Planning & Optimization (5 questions)
- Retirement & Long-term Planning (5 questions)
Total Questions: 25 | Estimated Time: 15–20 minutes | Scoring: 4 points per correct answer
Section 1: Budgeting & Money Management
Questions 1–5: Core Cash Flow & Debt Principles
Q1. What is the standard 50/30/20 budgeting rule?
Q2. An emergency fund should ideally cover how many months of baseline living expenses?
Q3. Which of the following is classified as a statutory "need" rather than a discretionary "want"?
Q4. What is the most effective method for tracking variable monthly outflows?
Q5. Which debt reduction methodology prioritizes clearing the smallest outstanding balances first?
Section 2: Investing & Wealth Creation
Questions 6–10: Asset Classes & Compounding
Q6. What does the acronym SIP represent in mutual fund investing?
Q7. Which asset instrument generally features the lowest capital volatility risk?
Q8. What constitutes strategic asset allocation?
Q9. How does the principle of compounding generate exponential wealth?
Q10. What is the fundamental objective of portfolio diversification?
Section 3: Insurance & Risk Management
Questions 11–15: Risk-Transfer & Coverage Sizing
Q11. What defines pure term life insurance?
Q12. What is the recommended baseline life insurance cover for an earning individual?
Q13. What is a deductible in health insurance coverage?
Q14. Which foundational risk-transfer policies should be established prior to equity investing?
Q15. What legal role does an insurance nominee fulfill?
Section 4: Tax Planning & Optimization
Questions 16–20: Deductions, Exemptions & Slabs
Q16. What is the statutory deduction limit under Section 80C in the Old Tax Regime?
Q17. Which mutual fund category qualifies for tax deduction under Section 80C?
Q18. What is the nil tax threshold under the revised New Tax Regime (FY 2026-27)?
Q19. What is the mandatory statutory lock-in period for ELSS mutual fund units?
Q20. What is House Rent Allowance (HRA) exemption under Section 10(13A)?
Section 5: Retirement & Long-term Planning
Questions 21–25: Corpus Sizing & Withdrawal Frameworks
Q21. When should long-term retirement capital accumulation ideally commence?
Q22. What is the National Pension System (NPS)?
Q23. What proportion of pre-retirement annual expenses should an optimal retirement plan typically replace?
Q24. What additional exclusive deduction does NPS offer under Section 80CCD(1B)?
Q25. What is the traditional 4% safe withdrawal rule in retirement modeling?
Your Financial Literacy Diagnostic Score
Need Direct Financial Advisory Guidance?
I provide direct, one-on-one portfolio management and cross-border tax preparation to align your financial assets with your life goals.