How Financially Savvy Are You?

Money Mastermind

You run a tight financial ship. With an eye on your future, you've cultivated smart debt management skills, fostered good saving and spending habits, and understand how money affects you and the rest of the nation. You also understand how financial institutions work, and how they can work for you. Keep this up, and you'll be set for life. Just remember: Saving is immensely important, but a small splurge every now and then is allowed!

Financially Sound

You may not understand all the esoteric nuances of the financial world, but you know what will work for and against you. And although you could use a little more discipline in budgeting and organizing your credit lines, you seem to have your money situation under control. Do keep in mind that just because you have debt doesn't mean you can't save at the same time. Building smart habits takes a while, but over time, tucking a little extra away each month will be second nature.

Credit Crunched

You're guilty of living beyond your means, and while at the moment, it seems these behaviors have not had an impact on your overall credit score, they eventually will. There's no reason not to take advantage of refinancing, to transfer balances, or apply for another credit card, but do it wisely and keep track of where you're spending and saving cash — the sooner you start paying down debt, the more likely it is you'll manage your money successfully for the rest of your financial life.

An Economic Disaster

You need to get a handle on your finances — and fast. Otherwise, your money habits are going to land you in some serious trouble. First, you need to figure out how much money you have coming in and where it's going. Then, organize your lines of credit and indebtedness — reviewing your credit report will make this easy. And it wouldn't hurt to brush up on some financial jargon or speak to a financial consultant. If you're going to agree to a 49.9 percent APR, you should at least know what it means. P.S. It's the annual percentage rate used to calculate interest on credit. And don't agree to that.