Front

Which of the following statements accurately describes the relationship between interest rates for savings accounts and inflation?
Savings accounts earn a negative real return because interest rates are higher than inflation,
Savings accounts earn a negative real return because interest rates are lower than inflation,
Savings accounts earn a positive real return because interest rates are higher than inflation,
Savings accounts earn a positive real return because interest rates are lower than inflation

Back

Savings accounts earn a negative real return because interest rates are lower than inflation

Front

What happens to the money that you deposit in a savings account at a bank?

Back

The bank lends out the money at a higher interest rate than what they are paying you.

Front

What is a disadvantage of saving for your retirement in a traditional savings account?

Back

Savings accounts earn very little interest, and your growth may not keep pace with inflation

Front

Which of the following is true about the comparison between credit unions and banks? Credit unions compete mostly on services relationships and banks try to offer a one-stop-shop for products

Back

Credit unions compete mostly on services relationships and banks try to offer a one-stop-shop for products

Front

What does it mean if a person lives paycheck-to-paycheck?

Back

They use their entire paycheck to cover monthly expenses and have very little money saved.

Front

Using the 50/30/20 budgeting plan can help you save money because…

Back

It recommends that 20% of your budget goes to debt repayment or savings.

Front

Tre just got a part-time job, and his sister recommends he “pay himself first.” What is she talking about?

Back

Tre should set aside part of every paycheck for savings before he does any spending.

Front

Misty is going to use the 50/30/20 rule in order to save $3000 for her family’s next big vacation. Her monthly income is $2500. How many months will it take her to reach her savings goal?

Back

6 Months

Front

How much do personal finance experts recommend having saved in an emergency fund?

Back

3-6 months of expenses

Front

Over the last twenty years, how have wages changed compared to the costs of housing, healthcare, and education?

Back

Wages have increased at a slower rate than those costs