Savings

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

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

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 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 account is the least  liquid?

• Checking Account
• Savings Account
• Money Market Deposit Account
• Certificate of Deposit

Commercial Banks offer more financial services than Credit Unions

• True
• False

If your savings account rate is lower than the inflation rate -you will make money

• True
• False

Experts recommend that you accumulate enough to cover 3 to 6 __________________ of expenses in your emergency fund.

• Days

• Weeks

• Months

• Years

Which of these is an example of "Keeping up with the Joneses?"

• Buying new sneakers the day they come out, because you know others in your class will have them, too

• Applying to the top colleges, to see if you'll get accepted & what financial aid packages they'll offer

• Saving for retirement as soon as you graduate college, to take advantage of compounding interest

• Buying plane tickets for vacation well in advance so that you'll benefit from cheaper prices

You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck." What does Aunt Tina mean by that?

• Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods

• Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses, so they use every dollar every month

• Aunt Tina and her family have high paying jobs and don’t worry much about money

• Aunt Tina uses her paychecks as income to deposit into her checking and savings accounts