FA Unit 3 Savings Review

Front

What is the recommended amount to cover in your emergency fund?

Back

3 to 6 months of expenses.

Front

What does the 50-20-30 rule of budgeting allocate for needs, savings, and wants?

Back

50% for needs, 20% for savings, and 30% for wants.

Front

If your take-home pay is $1230, how much should you save according to the 50-30-20 rule?

Back

$246.

Front

Write the equation representing Bob's savings after x months if he starts with $150 and saves $40 per month.

Back

y = 40x + 150.

Front

What is the total amount Julia and Alexandra will have after 12.5 weeks if Julia saves $40 per week and starts with $500, while Alexandra saves $80 per week?

Back

Both will have $1000.

Front

Define 'emergency fund'.

Back

A savings account that is set aside for unplanned expenses or emergencies.

Front

What is the purpose of the 50-20-30 budgeting rule?

Back

To help individuals allocate their income effectively among needs, savings, and wants.

Front

How do you calculate the amount to save using the 50-30-20 rule?

Back

Multiply your take-home pay by 20%.

Front

What is the significance of having an emergency fund?

Back

It provides financial security and peace of mind during unexpected situations.

Front

If you have $500 and save $40 weekly, how much will you have after 10 weeks?

Back

$900.