Saving Money Flashcard

Front

One reason people should save money is to create an "emergency fund." Which of these is an example of an unexpected expense you might use an emergency fund to pay for? 6 months of cable TV, A new cell phone if yours is stolen on the bus, Valentine's Day gifts for friends and family, Your back-to-school clothes and supplies

Back

A new cell phone if yours is stolen on the bus

Front

What does it mean to "pay yourself first"?

Back

Any time you get paid, set aside some portion to save before you do any spending.

Front

TJ is in 7th grade right now and cuts grass for neighbors to earn money. He wants to set one short-term savings goal and one long-term savings goal. Which answer best matches those goals?

Back

Short-term = expensive new sneakers // long-term = a car

Front

Which behavior change is MOST likely to help TJ save more money?
- Spend less time cutting grass and more time saving money
- Ask his parents for an allowance and try to save that money instead
- Before he spends, set aside $5 to save out of every $20 payment
- Spend money on a better lawn mower so he can cut more grass

Back

Before he spends, set aside $5 to save out of every $20 payment

Front

How much does Ro need to save per month for a $500 trip to Washington DC that is 20 months away?

Back

$25 per month

Front

Diamond makes $200 per month by babysitting. She wants to buy her dad something special for Father's Day, which is 10 months away. Which strategy will work best to ensure she has enough saved?

Back

Figure out how much she'd like to spend, then divide the cost by 10 to know how much to save each month.

Front

Which statement best describes what it means if your bank is "FDIC insured?"

Back

If you have money in your account and the bank goes out of business, you are guaranteed to get your money back up to a certain limit.

Front

What is one benefit of using a savings account instead of a checking account?

Back

Your savings account will earn interest, so the money will grow without you doing anything.

Front

What is one DOWNSIDE of using a savings account instead of a checking account?

Back

Your savings account has a limit of 6 withdrawals per month, while your checking account does not.

Front

As a teenager opening a savings account, which two features are MOST important for you to have in your account? Options: No interest rate and no monthly fees, No interest rate and no minimum balance requirement, No monthly fees and no minimum balance requirement, No monthly fee and no FDIC insurance

Back

No monthly fees and no minimum balance requirement