Saving 2021

Which of the following is FALSE about saving and investing?

• Saving doesn't outpace inflation; investing usually does

• Both saving and investing generally have low returns

• Saving has more risk; investing has less risk

• Saving is for short-term; investing is for the longer-term

Which is NOT a typical goal for a savings account?

• To create an emergency fund

• To pay for higher education

• To buy groceries for this week

• To save for a new car

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

• 5% of your income

• 20% of your income

• 10% of your income

• 30% of your income

About how much should you save in an emergency fund?

• 1-3 months of living expenses

• 3-6 months of living expenses

• 9-12 months of living expenses

• 6-9 months of living expenses

What is a good strategy to help you save?

• 1st, spend money on all expenses; put the rest into saving

• Pay yourself first - set aside money for savings each month

• Tap into your savings regularly to purchase small items

• Keep your spending and saving money together in 1 account

Which is a reason for why so many Americans live paycheck-to-paycheck?

• Many people are paying themselves first and then spending

• Many people impulse shop

• Many people only buy what they NEED, not what they WANT

• Many people spend within their budget

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

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

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

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

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

Which Savings Vehicle would work the best if you don't need to access the money for awhile and you want to earn the highest interest?

• Regular Savings Accounts

• Money Market Account

• Certificate of Deposit

If you are earning 5% interest, that typically means you will make the 5% every...

• Day

• Week

• Month

• Year

With simple interest, you earn interest on..

• The money you put in the bank (Principal)

• The interest you have earned

• The APR