Introduction to Savings

This term refers to any money transfers or contributions that are made to your savings account.

• Withdrawals

• Balances
• Investments
• Deposits

As of late 2020, 34% of Americans had less than how much money in their savings accounts. 

• 5000

• 500
• 1000

• 10000

What is the term for the amount of money you have left after you have paid all your personal debts and liabilities?

• Net Worth

• Gross Income

• Disposable Income

• Net Income

Anika has a savings account. She noticed that the interest she earns is added to her original deposit, and then she earns interest on that new amount as well. What is this process called?

• Investing

• Annual Interest Rate

• Annual Percentage Yield

• Compound Interest

What is the term for a savings account that you cannot access for a certain period of time?

• Fixed Deposit

• Current Account

• Recurring Deposit

• Savings Account

It is always more important to pay off debt than to save money. 

• True
• False

In January 2022, the U.S. monthly personal savings rate, also known as how much money people are saving from their net income after taxes, was approximately how much?

• 0.064
• 0.032
• 0.015
• 0.078

When you are saving money, you can put it away in a checking or a savings account where you can access it right away.

• True
• False

An emergency fund typically comprises of how many month(s) of your usual expenses?

• 1-2 months

• 3 to 6 months

• 6-19 months
• 12 months