Savings Vocabulary 1

How is wealth defined?

• How much money you have in your Checking and Saving accounts
• Debts - Assets
• All assets, including money in the bank + retirment
• Assets - Debts

What is a general rule of thumb on how much you should save?

• 5% of your income
• 10% of your income
• 20% of your income
• 30% of your income

What is a good strategy to help you save?

• 1st, 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

How does the 50-20-30 rule distribute your income?

• 50% expenses, 20% flexible spending, 30% saving
• 50% expenses, 20% saving, 30% flexible spending
• 50% flexible spending, 20% saving, 30% expenses
• 50% saving, 20% flexible spending, 30% expenses

Tags

CCSS.6.RP.A.3C

How does inflation impact the money in your savings account?

• Inflation decreases only the $ you earn in interest
• Inflation increases the value of the money in your account
• Inflation has no impact on $ in your savings account.
• The purchasing power of your money decreases over time

The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest.

• True

• False

What is the FDIC?

• A government agency that forces people to save 10% of their income.

• A U.S. corporation that insures investments against stock market crash.

• The U.S. corporation insuring deposits in US banks against bank failure

With this payment method, employers put the employee’s paycheck into the authorized employee’s bank account 

• paycheck
• payroll card
• direct deposit
•  all are the same

Tags

CCSS.6.NS.B.3

What is inflation?

• Increase general price level of goods and services

• Increase price level from one private organisation

• Decrease general price level of goods

• Increase general price level of services

Principal is the original amount of money saved or invested, separate from interest or earnings

• True

• False