Savings

How is wealth defined?

• How much money you have in your Checking and Saving accounts

• Debts - Assets

• All assets, including money in the bank + retirement

• Assets - Debts

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

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 Americans impulse shop

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

• Many people spend within their budget

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 account can be used to fund a bank's loans

• 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 you will need to open a savings account is identification and minimum opening deposit.

• True

• False

You need a checking account to open a savings account.

• True

• False

This is the cost of using some other person's or bank's money.

• Interest

• Bill

• Credit

• Principal