Savings Accounts

Choose TWO things that a savings account can be used for.

• Emergency visit to the doctor

• ATM

• Making a withdrawal often

• Vacation

How many withdrawals can you make a month with a savings account?

• 10

• 69

• 6

• 1

You earn _______________ by saving money in a savings account.

• money

• interest

• awards

• trophies

Interest earned on both the principal and any interest earned on the principal.

• Rate of return

• Compound interest

• Simple interest

• Principal earnings

Interest calculated on the amount of money deposited ONLY.

• Daily

• Simple

• Compound

• Annual

What government agency insures your money in a savings account?

• FBI

• CIA

• FDIC

• The President

Gary deposits $1000 in a Deposit Savings account that earns 1.5% simple interest each year. He makes no other deposits or withdrawls. How much money is in the account at the end of the year?

• 1000

• 1015

• 1050

• 1500

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

• Pay yourself first - set aside money for savings each month
• Keep your spending and saving money together in 1 account

Which of the following is an effective strategy for personal saving?

• Wait until the end of the month and save whatever is left in your checking account

• Save a certain percentage of each paycheck and deposit it directly into a savings account

• Cover all of your wants and needs and save whatever is left over

• Take out a payday loan so you can save before you receive your paycheck

You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for…

• Retirement, a house down payment, college tuition

• A new cell phone, college tuition, a house down payment

• A new cell phone, dinner with friends this weekend, a new bike

• Retirement, college tuition, a vacation