Unit Six Review

Which of the following is FALSE about saving and investing? (hint: choose 2 correct answers)

• Saving doesn't outpace inflation; investing usually does

• Both saving and investing generally have low returns

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

• Saving has more risk; investing has less risk

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.5.NBT.A.2

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 529 account?

• A type of retirement account for teens & younger adults
• A special type of saving account for minors
• A tax exempt fund that lets your savings grow for school
• A special type of saving account for college students only

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

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

• Many people are paying themselves first and then spending

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

• Many people impulse shop

• Many people spend within their budget

Tags

CCSS.RI.11-12.4

CCSS.RI.7.4

CCSS.RI.8.4

CCSS.RI.9-10.4

CCSS.RI.9-10.4

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

Which is TRUE about online saving accounts? (hint: choose 2 correct answers)

• Usually have higher interest rates than non-online accounts

• They usually have lower costs compared to brick-and-mortar banks

• Online accounts are not FDIC insured

• You can withdraw money an unlimited # of times

Saving accounts differ from checking accounts in that...

• Money in a saving accounts earn interest

• Saving accounts let you withdraw $ an unlimited # of times

• Saving accounts come with more fees than checking accounts

• Checking accounts offer higher interest rates

What might you need to open a savings account? (hint: choose 2 correct answers)

• Minimum opening deposit

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

• The routing number to a checking account

• Identification