Practice: Supersizing Your Money

About how much should you save in an emergency fund?

• 1-3 months of living expenses
• 3-6 months of living expenses
• 6-9 months of living expenses
• 9-12 months of living expenses

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 to purchase small items, like snacks
• Pay yourself first - set aside money for savings each month
• Keep your spending and saving money together in 1 account

What is a reason for why so many Americans live paycheck-to-paycheck?

• Many people are paying themselves first and then spending

• Many people only buy what they NEED, not what they WANT

• Many people impulse shop

• Many people spend within their budget

How does inflation impact the money in your savings account?

• Inflation decreases only the $ you earn in interest
• Inflation increases the value of the money in your account
• Inflation has no impact on $ in your savings account.
• The purchasing power of your money decreases over time

Which is a need?

• Pop

• Coffee

• Water

• Gatorade

Which is a want?

• A place to live (shelter)

• Oxygen

• Car

• Food

What is a want?

• A person
• Something you would like to have but don't need to live
• Purple
• Something you need to live

Which one of these definitions best describe 'Opportunity Costs'?

• The cost of making one decision over another.

• The cost for the opportunity to buy anything you want.

• The opportunity that will cost you loads of money.

Which item would you (at your current age) save for rather than invest:

• Car

• Retirement

• Your future children's college

• House

The amount of interest you earn in a typical savings account is about

• one percent

• ten percent

• fifteen percent

• twenty percent