Saving and Spending

Which is TRUE about Certificates of Deposit (CDs)? (hint: choose 2 correct answers)

• You agree to keep $ in a CD for an undetermined period of time

• You pay the bank some interest to keep $ in the CD

• The bank can loan out the $ in your CD

• The bank pays you interest in return

A type of account in which deposited money earns money while being protected from loss is a(n) _______

Money saved for unexpected expenses.

• Emergency Fund
• Bills
• Sick days
• Expenses

What is an individuals biggest wealth building tool?

• Income

• Investment

• Debt

• Inheritance

Something unnecessary but you desire.

• Need

• Want

• Expect

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 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

How does the 50-20-30 rule distribute your income?

• 50% expenses, 20% flexible spending, 30% saving
• 50% expenses, 20% saving, 30% flexible spending
• 50% flexible spending, 20% saving, 30% expenses
• 50% saving, 20% flexible spending, 30% expenses

You should build an emergency savings fund that can cover expenses for how long?

• 3-6 Weeks

• 6-9 Weeks

• 6-9 Months

• 1 Year

What is a general rule of thumb on how much you should save?

• 5% of your income
• 10% of your income
• 20% of your income
• 30% of your income