Savings Account Basics for Young Savers HW

What is a benefit of having a separate savings account?

• It makes your money grow faster

• It helps you track your spending and saving

• It gives you more money to spend

• It allows you to write checks

What does FDIC stand for?

• Federal Deposit Insurance Corporation

• Financial Deposit Insurance Company

• Federal Deposit Investment Corporation

• Financial Deposit Investment Company

Why is it important to have a savings account?

• To earn interest on your money

• To keep your money safe

• To manage your expenses

• All of the above

How can having a higher interest rate benefit you over time?

• It can increase your savings through compound interest.

• It can decrease your overall debt.

• It can reduce your monthly expenses.

• It can provide tax benefits.

What are two features to look for in a good savings account?

• High interest rate and low fees

• Low interest rate and high fees

• No interest rate and high fees

• High interest rate and high fees

Which of the following is not a characteristic of a SAVINGS ACCOUNT?

• Safe place to store money

• Owners can write checks from the money in the account

• Money is protected by Federal Insurance

• Money gains interest over time

• Great way to save for something you want or an emergency

Imagine Luna and Liam are discussing how to grow their savings. What financial concept do they highlight as a key benefit of savings?

• Budgeting

• Compound interest

• Risk assessment

• Debt consolidation

The interest rate on a savings account determines...

• How much money you need to have to open the account

• How much you will pay the bank to manage your money

• The amount of time your money will be in the account

• How quickly your money will grow over time

How does a savings account differ from a checking account?

• A savings account cannot receive direct deposits

• A savings account typically offers interest on the deposited money

• A checking account is used only for saving money

• A savings account does not allow you to withdraw money