Savings, Investing, Insurance, and Retirement

What are savings?

• Money spent on daily expenses

• Money left over after expenses have been paid

• Money borrowed from a financial institution

• Money invested in stocks

What is a savings account?

• An account for daily transactions

• An account for borrowing money

• An account offered by a financial institution that lets you store your money securely while earning interest

• An account used for purchasing stocks

How does savings help people in their personal financial success?

• By allowing them to spend more on luxury items

• By enabling them to make future large purchases without credit

• By increasing their dependency on loans

• By facilitating immediate gratification of wants

What is one of the benefits of having savings?

• It allows for unlimited spending

• It leads to financial instability

• It can provide security in life to protect against emergencies, job loss, etc.

• It requires paying high-interest rates

What can having savings allow you to do?

• Depend on others for financial needs

• Allow you financial freedom

• Increase your debts

• Limit your financial growth

Which of the following is an item people commonly save for?

• Watching movies

• House

• Fast food

• Entertainment subscriptions

What is the risk of not having savings according to the learning material?

• You may not be able to invest.

• You are living paycheck to paycheck, which is very risky.

• You might spend more than you earn.

• You will not be able to retire early.

What percentage of your monthly net income does a Financial Planner recommend saving?

• 10%

• 15%

• 20%

• 25%

What is investing?

• The process of spending money on goods and services

• The process of setting money aside to increase wealth over time for long-term financial goals

• The process of borrowing money to cover short-term needs

• The process of exchanging currencies

What is the purpose of Specialty Savings Accounts?

• To provide a simple way to earn interest and grow money

• To pay a higher interest rate than normal savings accounts

• To offer higher interest rates with significant restrictions

• To help reach particular savings goals