Savings, Goal-Setting, Budgeting

Which type of savings account is most suitable for short-term goals that require easy access to funds?

• Share Certificate

• Money Market Account

• Basic or Prime Share Savings

• Individual Retirement Account

What is the recommended percentage of net income to allocate for savings according to the spending plan?

• 5%

• 15%

• 25%

• At least 10%

A Roth IRA differs from a Traditional IRA in that:

• It has higher contribution limits

• Contributions are made with pre-tax income

• Withdrawals are taxed

• Contributions are made with after-tax income

What is the maximum recommended percentage of net income to spend on housing expenses?

• 25%

• 30%

• 35%

• 40%

Which savings option is typically kept as an "emergency fund" and requires a minimum balance?

• Share Certificate

• Money Market Account

• Coverdell Education Savings Account

• Basic Share Savings

When endorsing a check made out to two people with "and" between the names:

• Either person can sign

• Both people must sign

• Only the first person needs to sign

• The check cannot be endorsed

According to the spending plan, what is the maximum percentage of net income that should be allocated to transportation expenses?

• 10%

• 15%

• 20%

• 25%