Strand 4, Standard 2: Saving Money

Front

What does "Pay Yourself First" (PYF) mean?

Back

Saving a portion of your income before spending on anything else

Front

What is the purpose of an emergency fund?

Back

To cover unexpected expenses, like medical bills or car repairs

Front

Which of the following is a common saving option with low risk and easy access? Real estate, where you invest in property; Savings account, which keeps your money safe with easy access; Stocks, which can increase in value but also have high risk; Gold, which can rise in value but is difficult to access quickly?

Back

Savings account, which keeps your money safe with easy access

Front

What is a certificate of deposit (CD)?

Back

A type of savings account that offers a fixed term and a higher interest rate.

Front

What is the primary disadvantage of a CD?

Back

You may have to pay a penalty if you withdraw money before the end of the term

Front

How does inflation affect savings?

Back

It reduces the purchasing power of money, making goods and services more expensive.

Front

What is a benefit of putting money in a savings account?

Back

It provides easy access to funds with minimal risk of losing your money.

Front

Why might someone choose a CD over a regular savings account?

Back

To earn a higher interest rate than what a typical savings account offers

Front

What does over-saving refer to?

Back

Saving too much in low-interest accounts without considering other growth options

Front

Which saving method typically has higher interest but restricts access to funds for a set time?

Back

Certificate of Deposit (CD), which offers higher interest but limits access until maturity.