Savings

Defined contribution retirement account that is taken out of your paycheck before you pay any taxes on this income.

• IRA
• Roth IRA
• 401K
• Pension

An account that pays interest on a specific sum of money that a person has deposited for a specific period of time. If withdrawn before that time,the bank imposes a penalty fee.

• Savings Account
• Certificate of Deposit (CD)
• Checking Account
• Money Market Account

Interest paid periodically and paid on the principal plus interest earned.

• Simple Interest
• Compound Interest
• Hard Interest
• Double Interest

The percentage rate that is used when calculating the interest (money) paid on a savings, money market, or investment account.

• Rule of 72
• Interest rate
• Simple Interest
• Rate of Return

Money paid to you by a financial institution when you deposit funds there.

• Allowance
• Income
• Interest
• Tips

A type of bank account where the bank invests the money in government and corporate securities in order to pay a higher interest rate than a regular savings account. You typically have to have a large minimum balance in order to have such an account.

• Savings Account
• Money market account
• Checking Account
• CD

A portion of your income that you do not spend on your current needs, but instead set aside for future needs.

• Collateral
• Discretionary Income
• Savings
• Net Worth

A quick way to estimate the amount of time it will take for your money to double when placed in a savings account at a given interest rate. 72 divided by interest rate.

• Rule of 27
• Rule of Doubles
• 20/10 Rule
• Rule of 72

The phrase "pay yourself first" means to

• Treat yourself to something you want before spending any other money.
• Set money aside for your Christmas savings fund.
• put at least 10% of your income in a savings account before spending any money.
• Make sure all of your bills and other expenses are paid before saving money.

Which of the following is the most liquid asset?

• Stocks
• Savings Bonds
• Checking Account
• Certificate of Deposit (CD)