Unit 2 Lesson 5 - Strategies to Save

1. Keon receives a $1,000 paycheck.  According to the 50/30/20 rule, how much should he put aside for saving?

• $100

• $200

• $500

• $1,000

2. What is a major benefit of the Pay Yourself First strategy?

• It helps you budget all of your income for the month

• It encourages you to prioritize saving money

• It is a good way to build credit

• It generates additional income to cover essential expenses

3. How much money should you try to save in your emergency fund?

• 3-6 days worth of expenses

• 3-6 weeks worth of expenses

• 3-6 months worth of expenses

• 3-6 years worth of expenses

4. Money set aside for unanticipated expenses or loss of income.

• Debit Card

• Transaction Fee

• Direct Deposit

• Emergency Fund

5.  A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending.

• 50-20-30 Rule

• 40-40-20 Plan

• 60-10-30 Strategy

• 70-20-10 Framework

6.  A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth.

• Credit

• Wealth

• Interest

• Inflation

7.  Using most or all of your monthly income to cover your monthly expenses, leaving little to no spare cash for saving or investing.

• Emergency Fund

• Wealth

• Living Paycheck to Paycheck

• Living on the Edge

8.  Reinvesting earned interest back into the principal to allow money to grow exponentially over time.

• Compound Interest

• Simple Interest

• Overdraft Fee

• Minimum Balance

9. A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases.

• Pay Yourself First

• Money Market Savings Account

• Interest

• Online Savings Account

10.  An automatic electronic deposit of net pay to an employee's designated bank account.

• Mobile Deposit

• Prepaid Card

• Check Register

• Direct Deposit