Chapter 5 Savings Account Review 1

A savings account should be used for daily purchases

• True
• False

The Federal Reserve places a limit of ___ withdrawals per month from savings or money market accounts.

• 5

• 6

• 10

• unlimited

Which is NOT a typical goal for a savings account?

• To create an emergency fund

• To pay for higher education

• To save for a new car

• To buy groceries for this week

Tags

CCSS.3.OA.D.9

What is a good strategy to help you save?

• Pay expenses then deposit the rest into savings

• Dip into your savings on a regular basis

• Set aside money for savings each month

• Keep your spending and saving money together in one account

Savings accounts are considered high risk.

• True

• False

About how much should you save in an emergency fund?

• 1-3 months of living expenses
• 3-6 months of living expenses
• 6-9 months of living expenses
• 9-12 months of living expenses

Tags

CCSS.7.RP.A.3

What might you need to open a savings account?

• Minimum opening deposit

• Your previous year's tax returns (or your parents')

• The routing number to a checking account

• Identification

True or False: You need a checking account to open a savings account.

• True
• False

You may be charged a service fee if you make more than a maximum number of withdrawals from your regular savings account in one month or if your balance falls below a certain minimum.

• True
• False

Money you put into your account

• withdrawal

• balance

• deposit