Three Basic Reasons to Save

A savings account that is set aside to be used only for emergency expenses.

• Saving for large purchases

• A wealth building fund

• An emergency fund

• A "for anything" fund

Savings is a person's __________________ not spent on current expenditures.

• income

• money

• expenses

• things

At your age (a teen), a fully funded emergency fund should be ___________.

• $100

• $200

• $500

• $600

Ms. Brown earns $2000 a month in net income. Her monthly living expenses are $1,400. How much should Ms. Brown have in an emergency fund?

• At least $12,000

• At least $8,400

• At least $3,600

• It is not necessary to have an emergency fund.

It is important to save for large purchases to avoid _______________.

• borrowing money or a large amount of debt

• additional income

• saving

• building wealth

Ms. Brown earns $2000 a month in net income. Her monthly living expenses are $1,400. What dollar amount should Ms. Brown save on a monthly basis?

• $20-$40

• $200-$400

• $14-$28

• $140-$280

Pet frogs are an example of a(n) _____________________.

• need

• want

• form of income

• expense

Which of the following words would you not associate with building wealth?

• Saving to investing

• Saving to spend

• Financial Freedom

• Making your savings grow.

Sonia just got her first job! What do you recommend she begin saving for first?

• A new car.

• Paying for large purchases

• Building wealth

• Establishing an emergency fund

Once you have saved 10-20% of your income and established your emergency fund, you can stop saving.

• True

• False