Retirement, Savings, Insurance, and Taxes Review

What is the primary purpose of a savings account according to the image?

• To borrow money

• To store money securely while earning interest

• To invest in stocks

• To pay for daily expenses

Which of the following is NOT listed as a use for savings in the image?

• College

• Luxury travel

• Retirement

• Investing

According to the image, savings help in personal financial success because they:

• Allow for future large purchases without credit

• Increase personal debt

• Reduce educational opportunities

• Decrease financial security

According to the financial advice given, what percentage of your monthly net income should ideally be saved?

• 10%

• 20%

• 30%

• 40%

If you are earning $2500 monthly, how much should you ideally save according to the financial planner's recommendation?

• $200

• $400

• $500

• $600

What is the risk associated with not having any savings according to the image?

• You may need to borrow money

• You are living paycheck to paycheck

• You might invest unwisely

• You will have to work more hours

What is the primary goal of investing?

• To spend money on luxury items

• To increase wealth over time for long-term financial goals

• To cover daily expenses

• To save money in a risk-free manner

Why is investing considered riskier than saving?

• Because it involves setting aside money for short-term use

• Because the money is not capable of being lost

• Because it involves the potential for losing money

• Because it guarantees higher returns

What is a key characteristic of a High-Yield Savings Account compared to traditional savings accounts?

• No interest is accrued

• Lower interest rates

• Higher interest rates

• Fixed maturity date

Which type of savings account is described as having more significant restrictions but offers higher interest rates?

• Traditional Savings Account

• High-Yield Savings Account

• Money Market Accounts

• Cash Management Account