Everfi Vault Module 5 review

Why is it important to save money?

• Savings allow you to buy the things you want or need at a later time.

• Saving helps you buy things now

• Saving money helps you live longer

• Saving money is like exercise, it makes you healthier and stronger

What is the connection between goals and savings?

• Goals can give you a reason to save

• you can buy goals

• you can save goals

• goals are not connected to savings

Where would you got o start a savings account?

• A jar in the backyard

• a financial institution

• an envelope in the room

• all of the above

Savings acount____

• can help you reach your savings goals faster

• make paying credit cards easier

• help you spend more money

• can get you into debt more easily

Which of the following is not true about savings accounts?

• Savings accounts can protect your money from being lost, damaged or stolen.

• Savings accounts help you get to your goals faster.

• Savings accounts earn interest

• Savings accounts can lose your money

Interest earned on a savings account is _____

• the percentage of money you spend per month

• the percentage a financial institution pays you to borrow your money

• the percentage of your budget you spend

• the percentage of your budget you don’t spend

How are simple interest and compound interest different?

• Compound interest is like having more cash, but simple interest is like having more debt

• Simple interest is like having more cash, but compound interest is like having more debt

• Compound interest stays the same over time, but simple interest grows.

• Simple interest stays the same over time, but compound interest grows.

Insurance can help _____

• add money to a savings account

• in an emergency

• with making ends meet regularly

• None of the above

Why might a stock be an investment that can have some risks?

• You can lose money if the business you own stock in does not do well.

• Stocks usually do well in the long run.

• There can be some fees charged as you buy stocks

• You can earn a lot of money if the business you own stock in does really well

How can insurance help with meeting savings goals?

• Insurance companies can quickly use your savings to pay for emergencies.

• You can have a savings account with an insurance company.

• Insurance pays for some costs of an emergency so you can keep your savings.

• Financial institutions give higher interest rates for people who have insurance