SAVINGS

Why is it important to save money?

• to waste it

• to be prepared for future needs

• to buy useless items

When a financial advisor says that everyone should follow the principle of "Pay yourself first," the advisor means that a person should

• pay credit card bills before going on vacation

• borrow money to buy personal time

• put aside money for saving and investing from each paycheck before spending

• help family members reduce their credit card debt before saving for retirement.

Which is an example of "pay yourself first"?

• Budgeting the same amount of money each month for entertainment.

• Setting aside money from each paycheck to pay a car loan.

• Paying the monthly telephone bill electronically from a checking account.

• Saving some money from each paycheck before spending any of it.

Today, many people who are retired do NOT have enough money to pay their bills. What is the most likely reason for this?

• Many individuals did not save and plan for retirement.

• The rate of inflation decreased over the past twenty years.

• Banks do not pay interest on savings and checking accounts once individuals reach age 65.

• Social Security Income is only paid for three years after an individual retires.

A financially literate person invests and makes donations by using money that is

• Left after paying his budgeted monthly expenses

• In his emergency fund

• From his pay-day loans

• From his Roth Individual retirement Account (IRA)

What does it mean by the term "Interest"?

• Saving money simply means depositing money from your regular income so that the saved amount can be used at the time of urgency or for any other future use.

• money paid regularly at a particular rate for the use of money lent, money saved or for delaying the repayment of a debt.

• money that has been leant to you that you will pay back.

• money paid regularly at a particular rate for the use of money lent, money saved or for delaying the repayment of a debt.

If you wanted to save money, what type of account should you have?

• Savings account

• Transactional account

• Credit account

When using a savings account, what do you earn?

• Lower interest, meaning you gain less money

• Higher interest, meaning you gain more money

• no interest, meaning you gain no money

Which government agency provides insurance on bank deposits?

• Federal Deposit Insurance Corporation

• Philippine Deposit Insurance Corporation

• Security Bank Philippines

• Social Security System

It is an interest-bearing deposit account held at a bank or other financial institution.

• Savings Account

• Checking Account

• Income Account

• Expense Account