Saving and Investing

Saving money now can help you with which of the following?

• Prepare for unexpected emergencies

• Prepare for retirement

• Reach financial security

• All of these answers are correct.

Which is NOT a typical goal for a savings account?

• To create an emergency fund

• To pay for higher education

• To save for a new car

• To buy groceries for this week

How does inflation impact the money in your savings account?

• Inflation decreases only the $ you earn in interest

• Inflation increases the value of the money in your account

• Inflation has no impact on $ in your savings account.

• The purchasing power of your money decreases over time

Putting money aside for a trip/vacation this summer

• Saving

• Investing

Putting Money aside for a car...

• Saving

• Investing

Act of purchasing assets (stocks, bonds, property) with expectation that they will increase in value over time.

• Withdrawing

• Depositing

• Time Value of Money

• Investing

People should consider saving money for which of the following reasons?

• Emergency situations

• For retirement

• For a vacation

• All of the above

Which of the following is a primary benefit of saving money in a bank account?

• A) High risk of loss

• B) Earning interest

• C) Immediate access to funds

• D) Tax evasion

Investing in stocks is generally considered to be:

• A) Risk-free

• B) High-risk, high-reward

• C) A guaranteed way to make money

• D) Only for the wealthy

What is the main difference between saving and investing?

• A) Saving is for short-term goals, investing is for long-term growth

• B) Saving involves buying stocks, investing involves keeping cash

• C) Saving is riskier than investing

• D) Saving always yields higher returns than investing