Saving

Front

Which is NOT a typical goal for a savings account? Options: To create an emergency fund, To pay for higher education, To save for a new car, To buy groceries for this week

Back

To buy groceries for this week

Front

What is a general rule of thumb on how much you should save? Options: 5% of your income, 10% of your income, 20% of your income, 30% of your income

Back

20% of your income

Front

About how much should you save in an emergency fund? Options: 1-3 months of living expenses, 3-6 months of living expenses, 6-9 months of living expenses, 9-12 months of living expenses

Back

3-6 months of living expenses

Front

What is a good strategy to help you save? Options: spend money on all expenses; put the rest into saving, Tap into your savings on a regular basis to purchase small items, like snacks, Pay yourself first - set aside money for savings each month, Keep your spending and saving money together in 1 account

Back

Pay yourself first - set aside money for savings each month

Front

How is compound interest different than simple interest?

Back

It is simple interest + interest earned on that interest.

Front

Which of the following will give you a higher interest rate: Traditional Savings Account or Money Market?

Back

Money Market

Front

Which represents the best time to start saving for your retirement?

Back

As soon as you graduate and have your first full-time job

Front

High interest rate, but money must stay in the account for a certain amount of time

Back

Certificate of Deposit

Front

You can take money out of your savings account at a local bank each month as often as you would like without any fee?

Back

False

Front

Joe is 16 and has $5000 dollars in his savings account that he plans to use for college. Which savings account will earn him the most interest: Traditional Savings Account, Online Bank Savings Account, Traditional Checking Account, or Certificate of Deposit?

Back

Certificate of Deposit