Everfi - Module 5 - Future Planning

Everfi - Module 5
Future Planning

Interest - When you put your money in a savings account, you're lending your money to a financial institution. they pay you a percentage to borrow it.

Types of Interest


Simple - Calculated using principle only

Compound - Calculated using principle and added interest (money grows faster becouse it grows as your account grows)

Multiple Choice

Interest earned on savings account is.......

• the percentage a financial institution pays you to borrow your money

• the percentage of money you spend per month

• the percentage of your budget you spend

• the percentage of your budget you don't spend

Investing - When you spend money to make money. You can do this by putting your money into bonds, high yield savings accounts, or lending to someone who will pay you back with interest.

Investing - Money grows faster when you invest, but you may not be able to get your money whenever you want. You can also lose money when investing.

Multiple Choice

Why would investing your extra money be a good idea?

• you may lose it

• it helps your money grow faster

• you can use it anytime you want

Multiple Choice

What is the risk of investing your money?

• you may lose your money on a bad investment

• it helps your money grow faster

• you can use it anytime you want

Multiple Choice

Which would be better for a short term goal for not spending money?

• savings account

• an investment

Types of Investments

​Things to consider...

Terms - short, medium, long

Risk factor - high risk or low risk

Money return - the amount of money you get back

Insurance

​What is insurance?

You pay a fee to help protect against emergencies and loses. It is often helpful to cover things like investments, cars, house, health, and life.

Multiple Choice

Insurance can help _____.

• add money to a savings account

• in an emergency

• with making ends meet regularly.

Multiple Choice

How are simple interest and compound interest different?

• Compound interest is like having more cash, but simple interest is like having more debt

• Simple interest is like having more cash, but compound interest is like having more debt

• Simple interest stays the same over time, but compound interest grows

Multiple Choice

Which of the following is not true about savings accounts?

• Savings accounts can protect your money from being lost, damaged or stolen.

• Savings accounts help you get to your goals faster.

• Savings accounts can lose your money.

Multiple Choice

Savings accounts _____.

• can help you reach your savings goals faster

• make paying credit cards easier

• help you spend more money

Multiple Choice

Where would you go to start a savings account?

• A jar in your backyard

• A financial institution

• An envelope in your room

Multiple Choice

How can insurance help with meeting savings goals?

• financial institutions give higher interest rates for people who have insurance

• you can have a savings account with an insurance company

• insurance companies can quickly use your savings to pay for emergencies

• insurance pays for some costs of an emergency so you can keep your savings

Multiple Choice

What might a stock be an investment that has some risk?

• you can earn a lot of money if the business you own stock in does really well

• you can lose money if the business you won stock in does not do well

• there can be some fees charged to owning stocks