Savings and Investments Quiz

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

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.

Most Americans have an emergency fund and money saved for retirement

• True
• False

The power of compound interest works BEST the longer an investment is allowed to grow

• True
• False

A savings account should be used for daily purchases

• True
• False

If you deposit $200 into a CD @ 1% for 3 years, how much simple interest will you earn ?

• $1
• $5
• $6
• $35

Experts recommend you save money in an "emergency fund." Which of these represents an expense where the emergency fund would be particularly useful?

• Monthly rent
• $150 speeding ticket
• Occasional fancy dinner or vacations
• Car insurance

Which one of these account types requires you keep your money deposited for a fixed amount of time?

• Money market account (MMA)

• Savings account

• Certificate of deposit (CD)

• Checking account

A budget is ___________.

• a list of what to buy at a store

• a plan for managing your money. It compares how much you earn (make) to how much you spend

• is things you shouldn't do

The goal of a budget is _________________.

• to spend more than you make

• to spend less than you make