Savings

a strategy for using money to reach important goals and to advance your financial security

• savings plan

• SMART goal

• emergency funding

The first step in a savings plan is to

• put money into savings account

• spend money on discretionary expenses

• pay yourself first

an amount of money you can easily access in case of a job layoff, illness, or unexpected expense

• savings account

• checking account

• emergency fund

Common guideline is that you keep enough money in the emergency fund to cover living expenses for ________

• 6-8 months

• 3-4 months

• 8-12 months

something you want to achieve stated in terms that are specific, measurable, achievable,realistic, and time related

• SMART goal

• savings plan

• EE bonding

____________ is to make plans straightforward i.e. save for $1200 for ski trip in Dec. instead of save money for future trip

• Specific goals

• Standard goals

• Measurable goals

_________ are to know when to reach your goal i.e. predict sales of a laptop in order to save monthly

• Measurable goals

• Achievable goals

• Specific goals

_________goals need to reasonable and attainable i.e. knowing how much you can afford to purchase your first home instead of aiming to own a $1 million house on the beach as a first home is not achievable

• Achievable

• Realistic

• Specific

___________consider your income and expenses, life situation, and any likely changes i.e. planning on saving $300 a month to buy a car instead of getting a loan within 2 years; Purchasing used car is realistic while buying a new luxury car is not

• Achievable goals

• Measurable goals

• Realistic goals

__________goals should have starting points, ending points, and fixed time periods

• Time related

• Standard

• Measurable