PF - Unit 3 Review: Saving & Systems of Equations

Harper, Anika, and Grace are having a lively debate about savings accounts and inflation. They came up with the following statements. Which one accurately describes the relationship between interest rates for savings accounts and inflation?

• Savings accounts earn a negative real return because interest rates are higher than inflation

• Savings accounts earn a negative real return because interest rates are lower than inflation

• Savings accounts earn a positive real return because interest rates are higher than inflation

• Savings accounts earn a positive real return because interest rates are lower than inflation

Tags

CCSS.6.RP.A.3D

Imagine Hannah, Noah, and Nora decided to deposit their pocket money in a savings account at a bank. What do you think happens to their money?

• The bank lends out the money at a higher interest rate than what they are paying Hannah, Noah, and Nora

• The bank lends out the money at a lower interest rate than what they are paying Hannah, Noah, and Nora

• Hannah, Noah, and Nora's money sits at the bank until they are ready to withdraw or use it

• The money is sent to the Federal Reserve, where it sits until Hannah, Noah, and Nora are ready to withdraw or use it

Emma, Ava, and Samuel are discussing their retirement plans. Samuel suggests using a traditional savings account. Ava, however, points out a disadvantage of this approach. What could be Ava's argument?

• Savings accounts are not very safe, and you could lose all your money

• Savings accounts earn very little interest, and your growth may not keep pace with inflation

• Savings accounts are very costly to maintain, and the fees will reduce your savings in the long-term

• Savings accounts are traditionally used for bill pay, and you will likely change accounts before your retirement bills are due

Ethan, Zoe, and Isla are having a debate about financial institutions. They are discussing the differences between credit unions and banks. Can you help them figure out which of the following statements is true?

• Credit unions are owned by shareholders and banks are owned by customers

• Credit unions are structured to maximize profits and banks are non-profit entities serving their members

• Credit unions tend to be large organizations and banks are often smaller/more local organizations

• Credit unions compete mostly on services relationships and banks try to offer a one-stop-shop for products

Imagine Abigail, Michael, and Benjamin are discussing their financial habits. Abigail mentions that she lives paycheck-to-paycheck. What does she mean by that?

• She uses her entire paycheck to cover monthly expenses and has very little money saved

• Her income varies month-to-month and she saves a large portion of her biggest paychecks

• She uses direct deposit, so her paycheck is automatically split between her checking and savings accounts

• She has a high-paying job, so doesn’t have to worry about how much is in each paycheck

Imagine Michael, Olivia, and Mason are discussing ways to save money. Michael suggests using the 50/30/20 budgeting plan. According to him, why could this plan help them save money?

• It limits their spending to $50 per month

• It recommends that 20% of their budget goes to debt repayment or savings

• It recommends that 50% of their budget goes to debt repayment or savings

• For every $50 they save, a bank will give them $30 or a credit union will give them $20

Imagine this, Mia! Your friend Tre just landed a cool part-time job, and his wise sister Aria advises him to 'pay himself first.' Can you guess what she's hinting at?

• Tre should rush to deposit his paycheck before the taxman can get a slice

• Tre should squirrel away a portion of every paycheck into savings before splurging on anything

• Tre should first spend on his needs before lending any to friends or donating to charity

• Tre should consider starting his own venture instead of working for someone else

Olivia, Abigail, and Hannah are planning a fun-filled family vacation. They decide to use the 50/30/20 rule for saving. If their combined monthly income is $2500, and they aim to save $3000 for the vacation, can you help them figure out how many months it will take to reach their savings goal?

• 2.4 months

• 4 months

• 5 months

• 6 months

Tags

CCSS.7.RP.A.3

Hey there, Liam, Anika, and Kai! Imagine you're personal finance experts. How much would you recommend having saved in an emergency fund?

• 1-3 month of expenses

• 3-6 months of expenses

• 6-9 months of your salary

• 1-2 years of expenses

Tags

CCSS.7.RP.A.3

James, Michael, and Abigail were having a debate. Over the last twenty years, they wondered, how have wages changed compared to the costs of housing, healthcare, and education? Can you help them figure it out?

• Wages have increased at a slower rate than those costs

• Wages have increased at the same rate as those costs

• Wages have increased at a faster rate than those costs

• Wages have decreased as those costs have increased

Tags

CCSS.8.F.A.2

CCSS.HSF.IF.C.9