Everfi Vault 5: Future Planning

1. Why is it important to save money?

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

• b. Savings help you buy things now.

• c. Saving money helps you live longer.

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

2. What is the connection between goals and savings?

• a. Goals can give you a reason to save.

• b. You can buy goals.

• c. You can save goals.

• d. Goals are not connected to savings.

3. Where would you go to start a savings account?

• a. A jar in your backyard

• b. A financial institution

• c. An envelope in your room

• d. All of the above

4. Savings accounts _____.

• a. can help you reach your savings goals faster

• b. make paying credit cards easier

• c. help you spend more money

• d. can get you into debt more easily

5. Which of the following is not true about savings accounts?

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

• b. Savings accounts help you get to your goals faster.

• c. Savings accounts earn interest.

• d. Savings accounts can lose your money.

6. Interest earned on a savings account is _____.

• a. the percentage of money you spend per month

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

• c. the percentage of your budget you spend

• d. the percentage of your budget you don’t spend

7. How are simple interest and compound interest different?

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

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

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

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

8. Insurance can help _____.

• a. add money to a savings account

• b. in an emergency

• c. with making ends meet regularly.

• d. None of the above

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

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

• b. Stocks usually do well in the long run.

• c. There can be some fees charged as you buy stocks.

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

10. How can insurance help with meeting savings goals?

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

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

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

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